The National Council of Chartered Accountants and Accounting Experts (hereinafter C.N.D.C.E.C.), following a public consultation reserved for local associations which ended on 30 June, resolved to issue the first Code of disciplinary sanctions for the category.
The code will come into force starting from 1 January 2017. However, this is not the first innovation this year, in fact at the end of 2015 the C.N.D.C.E.C. had already worked for the approval of the code of ethics for accountants, which came into force on 1 March 2016, replacing the 2008 code.
The new code of ethics focuses on the relationship of trust between client and professional, in fact if on the one hand the client has the right to choose his professional and replace him at any time, the same rule will also apply to the professional, subject to agreement. It is also established, in the case of the absence of specific skills of the accountant regarding a specific practice, the existence of the obligation to refuse the assignment, as well as the obligation to refuse its continuation if circumstances or constraints arise that may influence its freedom of judgment or to influence his actions, as in the case of failure to pay his fees or reimbursement of expenses incurred.
It is also specified that the professional who takes over from another colleague in the performance of the same task must first ensure that the client's withdrawal has been adequately communicated to the previous colleague, as well as the payment of the respective dues and, if he has not done so, invite him to comply promptly.
Furthermore, all accountants and accounting experts are required to follow the client in all phases of the professional relationship. The professional must immediately inform the client of his decision to accept or not the assignment and once accepted, he must assure the client of adequate organization of the study and the specific competence required.
The Code of disciplinary sanctions was designed to facilitate uniform application throughout the national territory of disciplinary sanctions imposed for the same types of ethical violations.
The code identifies three different types of sanctions, censorship, suspension from professional practice for a period of time not exceeding two years up to and including disbarment from the register.
The code of disciplinary sanctions must necessarily be read in correlation with the code of ethics, determining perfect harmony between the sanction to be imposed and the disciplinary offense referred to in the relevant code.
By way of example, the sanction of censure, consisting of a formal declaration of reprimand, is applied in the case of violation of the duties of integrity, objectivity and independence.
The suspension sanction, varying from months up to a maximum of two years, is applied in the case of violation of the obligation of confidentiality and of the obligations to be respected in the case of taking over from a colleague, as well as in case of failure to take out professional insurance.
The more serious sanction of removal from the register will be imposed on anyone who, in the presence of aggravating circumstances, such as the reiteration of behavior that has led to disciplinary measures against the member, the existence of fraud, the commission of multiple simultaneous violations, incurs particularly serious cases for facts for which the disciplinary sanction of suspension of up to two years would already be applicable, such as in the case of abusive exercise of a professional activity.
Milano, July 29th 2016.
Avv. Giovanni Babino
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