Consultants 1

We have taken on a retired ex IP as a consultant. He sources work from his client and contact base and passes the cases to us to deal with. He earns a retainer from us and there is an additional sum payable based on fee income targets. Does this fall foul of any ethical guideline on winning work?
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Reply
  • Assuming you're in an insolvency practice, if the agreement includes an element of remuneration for introducing work then there could well be an issue as the code of ethics says at 400.63 -  ‘The special nature of insolvency appointments makes the payment or offer of any commission for or the furnishing of any valuable consideration towards, the introduction of insolvency appointments inappropriate. This does not, however, preclude an arrangement between an insolvency practitioner and an employee whereby the employee's remuneration is based in whole or in part on introductions obtained for the insolvency practitioner through the efforts of the employee’.

    If you're an ICAEW IP, I'd suggest you contact our ethical helpline on 01908 248 250.

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