FCA highlights common errors in accounts

The Financial Conduct Authority (FCA) has highlighted some examples of accounts filed under the Mutuals Public Register with common errors and what needs to be addressed to avoid such errors. These include:

• correct auditor appointment – who can do the work
• what act the entity is reporting on including the correct legislative references
• making sure the accounts are approved and signed
• appropriate reference/inclusion of share capital.

When filing accounts under the Mutuals Public Register, practitioners should be mindful of the importance of checking the entity’s registration and/or governing documents to ensure the issues highlighted above are not being incorrectly reported.

The Co-operative and Community Benefit Societies Act 2014 replaces the 1965, 1967, 1975, 1978 and 2002 Industrial and Provident Societies Acts; the Friendly and Industrial and Provident Societies Act 1968; the Co-operatives and Community Benefit Societies Act 2003; and the Co-operative and Community Benefit Societies and Credit Unions Act 2010.

It does not replace the Credit Unions Act 1979. It has re-highlighted the audit and reporting differences between these entities and registered charities. 

To aid practitioners and their clients, FCA has highlighted a variety of resources, tools and contact information, such as:

• information provided on the FCA website
• how the changes affect audit requirements for registered societies
• an audit decision tool 
• details of audit requirements under the 2014 Act provided in FCA’s published guidance.
• the FCA’s forms page, which provides the AR30 form and the Group accounts exemption form
• how annual return submissions can be sent in to the FCA; this includes the mutuals society portal and email to mutualsannrtns@fca.org.uk
• direct contact to the FCA’s team via email to Mutual.Societies@fca.org.uk.
  
  

More information

Download our factsheet on The Co-operative and Community Benefit Societies Act 2014