Accountancy Update - January 2012
Welcome to the first edition of Taylor Wessing's quarterly accountancy newsletter. Our intention is to provide in an easily digestible format an update of current legal and regulatory developments affecting the profession.
Economic factors, noises from Europe and unrealistic expectations from policy setters create an even more challenging environment for the profession than normal. Broadly speaking, decisions coming out of the law courts in recent years have tended to be helpful. The Stone & Rolls case reflected a willingness (at least by a majority of 3 to 2) to accept that the auditor need not always underwrite the fortunes of his client and the courts have consistently respected the sanctity of contracts between commercial parties (underlining the value of a good engagement letter and energetic risk management).
The regulatory environment - not least recent noises from the FRC as to the importance of deterrent fines which would cause pain in even the largest firm - is more concerning. The AADB has of course been busier than ever, with several new investigations launched over recent months. Whether the proposals mooted in October's BIS/FRC consultation paper come to pass, including proper focus for the AADB on those cases with a genuine public interest and the potential for a more streamlined settlement process, remains to be seen. In addition to digests of cases in the courts we intend in these newsletters to focus on the evolution of the AADB and developments within the regulatory regime. In the meantime, we include in this edition our summary guide to the regulatory process (published with PLC) which - while no doubt familiar ground - we hope is a helpful resource.
We hope you find the newsletter useful. We would be grateful for your feedback.
Recent developments
Gross negligence: not a meaningless concept
Scoping the duty: Standard Chartered Bank v Ceylon Petroleum Corp
Well-fitting cap: pitching a liability cap
Open all hours: the use of all reasonable endeavours obligations in commercial contracts
Receivership sales: duty to obtain a proper price and the importance of marketing
New data protection law promises much tougher financial penalties
Future developments
Knowhow
Lawyers Julian Randall, Andrew Howell, Sophie Cubbon, Vinod Bange, Rowena Lewis, Stuart Broom
