Our Approach to Professional Ethics and Legal Compliance

Ethical Standards and Client Relationships

All licensed accounting firms and tax advisers are required to adhere to a uniform set of ethical guidelines governing their professional conduct with clients. While many firms choose to avoid explicitly addressing the consequences that may arise when a client’s actions conflict with their understanding of the law, preferring instead to deal with such conflicts only if and when they occur, we take a different approach.

From the outset, we make it clear that we will never ignore or overlook any deliberate attempt by a client to break the law. By stating this upfront, we seek to avoid the ethical dilemma of having to later address such behaviour, and instead, we set clear expectations from the beginning.

Our Commitment to Legal Compliance

One of our fundamental objectives as financial accountants is to provide our clients with guidance on how to operate within the law. By doing so, we help clients avoid investigations, official interventions, and potential prosecutions—outcomes that are typically highly disruptive, time-consuming, and invariably costly to resolve, rarely concluding in the client’s favour. We believe that preventing such scenarios is in our clients’ best interests, and we are committed to supporting them in achieving this.

Interpreting Legislation and Professional Judgement

Primary legislation sets out broad requirements regarding what should and should not take place. However, the specifics of how these rules are interpreted and applied in practice are determined by supplementary statutory regulations, case law, and guidance from enforcement authorities. This creates considerable scope for professional judgement in interpreting what compliance means in practice. It is often remarked that placing a hundred tax experts in a room to discuss a contentious case would result in two hundred different opinions on how to resolve the matter. This reality can present challenges when clients disagree with our interpretation of the legal requirements.

Professional Development and Resolving Disagreements

As licensed practitioners, we are required to invest in ongoing professional development each year to ensure our knowledge of relevant laws remains current and compliant. The renewal of our practising licence depends on this commitment. When a client challenges our perspective on a legal compliance issue, our first step is to thoroughly research the relevant legislation, regulations, and official guidance, and to prepare a detailed written report that explains and justifies our position. If this does not lead to a mutually acceptable resolution, we propose referring the matter to the appropriate enforcement agency—usually HMRC—for a definitive ruling. Ultimately, only the enforcement authority’s interpretation is binding unless the matter proceeds to court. If the client refuses to cooperate or to refer the matter to the authorities, we reach an impasse that can only be resolved by our resignation, provided the client has not already chosen to end our engagement.

Professional Relationships and Their Conclusion

It is important to note that we do not take disagreements over compliance matters personally, even if they result in the end of the professional relationship. We remain calm and accept that differences of professional opinion may sometimes make continuing the engagement impossible. However, few clients realise that our resignation—or their decision to dismiss us—is not necessarily the end of the matter.

Implications of Resignation and Professional Clearance

The first issue arises when a client seeks to appoint a new accounting firm. The incoming firm should promptly send us a professional clearance letter, requesting disclosure of any reasons why they should not accept the engagement. We are obliged to disclose any concerns regarding the circumstances of our departure. What the new firm decides to do with this information is their responsibility. If we receive a qualified clearance letter, we will discuss the concerns with the client and, unless satisfied that the client has addressed the previous accountant’s concerns, we will decline to proceed with the engagement. We do not wish to work with clients who refuse to acknowledge or resolve identified non-compliance issues.

Regulatory Obligations: Proceeds of Crime and Terrorism Legislation

As a licensed and regulated firm, MAAAP is subject to stringent legal obligations under Part 7 of the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000. We are required to submit Suspicious Activity Reports (SAR) to the National Crime Agency if, in the course of our business, we know, suspect, or have reasonable grounds to suspect, that a person is involved in or attempting money laundering or terrorist financing. The scope of these regulations is broad, extending to any suspicion that a client or their associates are benefiting from proceeds of crime or engaged in fraudulent activities, including deliberate tax evasion. Failure to submit a SAR when warranted is itself a criminal offence. Additionally, it is an offence to inform the subject that a SAR is being, or has been, submitted regarding them.

Our Firm’s Uncompromising Stance

For this reason, we clearly state that we will submit a SAR, and we will not hesitate to resign from a client engagement when circumstances require it. We will not compromise on our professional and ethical standards to comply with the law as we interpret it.

Our Professional Values

In summary, our goal is to uphold the highest professional and ethical standards in all our dealings. We know that our long-standing clients value this approach, as it reflects their confidence and reliance on this firm to continue operating with integrity.