RegulationAccounting StandardsInnocent AADB defendants to be denied costs

Innocent AADB defendants to be denied costs

New rules at the Accountancy and Actuarial Discipline Board will make it more difficult for aggrieved parties to reclaim legal costs

Firms who fight and win tribunal cases are set to be denied their costs,
under plans announced
today
.

Firms will have to now prove that the Accountancy And Actuarial Discipline
Board has committed ‘misfeasance’ to get their costs.

The move sets up an almost insurmountable barrier, and is likely to infuriate
those who are accused by the AADB, but who are found to be innocent. It marks a
return to the system used by the Joint Disciplinary Scheme, where successful
defendants could not get their costs back.

The AADB had to pay £1m in costs to PricewaterhouseCoopers and others when
its Mayflower case failed. The costs bill caused consternation within the FRC,
which had not budgeted for any costs claim.

‘Misfeasance’ constitutes an offence greater than simply negligence or the
AADB simply finding its charges do not stick, but requires costs claimants to
prove there has been some deliberate and dishonest use of office.

The Board has also proposed the formation of a Decisions Disciplinary
Committee, which will also be subject to the rules regarding circumstances of
‘misfeasance’.

Further Reading:

Read the FRC’s
release

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

2w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

5m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter