RegulationAccounting StandardsDefendants billed to save cash for ICAS members

Defendants billed to save cash for ICAS members

ICAS in bid to stop institute members as a whole footing the bill for cases before tribunals

ICAS is set to charge defendants costs in complex tribunals – before the case
has even been concluded.

The move will see the institute obtain early cost orders against defendants,
and add a significant burden to the upfront costs of defending actions at ICAS
tribunals.

The move, which has been approved by the Privy Council, has been undertaken
by ICAS in a bid to stop institute members as a whole footing the bill for the
cases.

Tom McMorrow, ICAS director for regulation and compliance, hailed the move as
key in reducing the potential for institute members to cover costs of cases.
‘We’re possibly the first accounting institute in the world to introduce this
scheme,’ said McMorrow.

Currently ICAS members put up £50 a year towards the costs of tribunals. The
scheme is intended to stop case proceedings dragging, where there is an
overwhelming evidence against the defendant.

Although ICAS has budgeted the £50 fee for 2007, McMorrow hopes it will be
able to ditch the fee for 2008, saving members hundreds of thousands of pounds a
year.

Michael Beloff QC, an expert on institute disciplinary procedures, was among
advisers to ICAS as it looked into the legality and human rights concerns.

‘They had to be sure it flied legally,’ McMorrow said.

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