Compliance is not an option
My firm's new accountant has pointed out that we have not been doing our client money reconciliations properly. This has now been rectified but the accountant is insistent that we notify the regulator of the breach although we are now solvent. Surely it is better to just keep quiet?
The words 'we are now solvent' suggest that, at some time in the past, you were not. This is a notifiable breach and, in addition, your accountants have a whistle-blowing duty as well.
It seems clear that the previous accountants were either not competent or just did not understand the Financial Services Authority rulebook. Since the beginning of regulation in January 2005, it continues to be the case that many accountancy practices simply do not understand the rules or what is required of them
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