Fee Protection Rules by Professional Body

Whether a practice can offer fee protection insurance to clients under its professional body’s licence depends on the body. ICAEW, ICAS and Chartered Accountants Ireland firms use a joint DPB (Investment Business) Handbook, and ACCA firms register for exempt regulated activities under ACCA’s own regulations. CIOT, ATT, AAT and bookkeeping bodies are not designated professional bodies, so their members need FCA authorisation or an appointed representative arrangement instead.

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ICAEW, ICAS and Chartered Accountants Ireland

The three bodies share one DPB (Investment Business) Handbook, effective 1 April 2026. Key points for fee protection:

a licensed firm must be included on the FCA’s Financial Services Register before it can arrange insurance, assist with claims or advise on insurance, and ICAEW notes that all licensed firms are included;
Schedule 8 says telling the insurer about an HMRC enquiry for a client “is the regulated activity of claims handling and unless the firm is DPB licensed or FCA authorised it will not be able to do this”;
collecting proposal forms and premiums counts as arranging, so a licence is needed;
a firm “cannot insist a client purchases its fee protection insurance when providing accountancy services”;
a written demands and needs statement is required, and blanket disclosure of commission in terms of engagement is not sufficient;
from 1 April 2026 the minimum PI cover for insurance distribution is €1,300,380 per claim and €1,924,560 in aggregate.

See how to run a fee protection scheme.

ACCA

ACCA firms use “The Chartered Certified Accountants’ Designated Professional Body Regulations 2001”, last amended 1 January 2025. There is no separate certificate: the firm needs exempt regulated activities registration and must register with ACCA for insurance distribution and make sure its details appear on the Financial Services Register before starting. Regulation 3(7) says commission can be kept only with the client’s informed written consent, and general consent is not enough. A demands and needs statement is required. ACCA’s technical factsheet on exempt regulated activities warns that charging an annual fee to cover HMRC enquiry work “may amount to the sale of insurance contracts”, which would need direct FCA authorisation.

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From £108.75 a year (£9.06 a month) for individuals, £117.57 for sole traders and £207.50 for companies and partnerships, including IPT and the £20 admin fee.

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CIOT and ATT

Neither is a designated professional body. Their joint Professional Rules and Practice Guidelines say a member carrying on regulated activities must be with a firm authorised by the FCA or a member of a designated professional body. On commission, members must tell clients, no later than when advice is given, that they receive it and how much.

AAT, ICB and IAB

None is a designated professional body, so their members cannot use the Part 20 exemption. See fee protection for bookkeepers for the routes available.

What must every exempt firm tell clients?

The FCA’s Professional Firms sourcebook (PROF 4.1.3R) requires DPB firms doing insurance distribution to state that they are not authorised by the FCA but are on the register maintained by the FCA so they can carry on insurance distribution activity, which is regulated by their professional body. The statement must be no less prominent than other information given, and can be included in engagement letters.

Can Solar Protect help?

Solar Protect builds fee protection schemes for accountancy and bookkeeping practices. See how our accountant schemes work or read choosing a fee protection provider.

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 7 October 2026. Sources: ICAEW, ICAS and CAI DPB (Investment Business) Handbook effective 1 April 2026; ACCA Designated Professional Body Regulations 2001 (amended 1 January 2025) and technical factsheet; CIOT and ATT Professional Rules and Practice Guidelines; FCA Handbook PROF 4.1.3R. This guide is general information, not legal or regulatory advice. Always check the current rules of your own professional body.