Disciplinary law for accountants

What we do

In the exercise of their profession, accountants are subject to disciplinary law. A client therefore has the option to lodge a complaint against their accountant. The client may do so, for example, if the service provided by the accountant does not meet quality requirements. Furthermore, a third party has the option to lodge a complaint against an accountant if that third party has an interest in doing so. Whether a third party has an interest depends on the factual circumstances.

A complaint is filed via a written complaint. This document must clearly set out the nature of the complaint and demonstrate that the accountant has acted in a manner that is reprehensible under disciplinary law. A complaint is always filed against an individual accountant. If the accountant has acted in a manner reprehensible under disciplinary law, a measure may be taken. This could include a reprimand, a fine, a warning, but also, for example, temporary or permanent removal from the accountants' register. No compensation for damages can be imposed on the accountant through disciplinary proceedings. A claim for damages must be brought through civil proceedings.

Questions regarding the disciplinary law for accountants? Contact us.

What an accountant is subject to disciplinary review against

Disciplinary law for accountants is based on the Accountants Disciplinary Jurisdiction Act (Wtra) and the Accountancy Profession Act (Wab). The substantive standards against which the conduct of a registered accountant (RA) or certified public accountant (AA) is assessed are set out in the professional rules of the Royal Netherlands Organisation of Accountants (NBA), in particular the Regulation on Professional Conduct and Ethics for Accountants (VGBA) and, for assurance and related engagements, the Regulation on Independence (ViO).

The VGBA establishes five fundamental principles that every accountant must adhere to: professionalism, integrity, objectivity, professional competence and care, and confidentiality. A complaint will only succeed if it is plausible that the accountant acted in violation of one or more of these principles. Not every error or disagreement regarding the outcome of an engagement constitutes a disciplinary violation; the question is whether the accountant acted as could reasonably be expected of a reasonably acting and reasonably competent professional colleague.

The procedure before the Accountants Chamber

Complaints against accountants are handled by the Accountants Chamber, located in Zwolle. The procedure is broadly as follows:

• Time limit: a complaint may be filed up to ten years after the alleged conduct.
• Court fees: a court fee of €70 is payable for the processing of a complaint; this will be refunded if the complaint is deemed well-founded. The AFM and the NBA are not required to pay court fees.
• Letter of complaint: the letter of complaint is signed and submitted in duplicate, together with the relevant documents.
• Statement of defense: in principle, the accountant is given four weeks to submit a written defense. Sometimes an additional written round follows (reply and rejoinder).
• Hearing: both parties are heard at a public hearing; witnesses and experts may be called.
• Composition: the Accountants Chamber consists of judges, supplemented by accountants as special members, so that both legal and technical expertise are ensured.
• Decision: the complaint is declared inadmissible, unfounded, or (partially) well-founded, usually within fifteen weeks after the hearing.

If the complaint is found to be well-founded, the Accountants Chamber may impose a measure: a warning, a reprimand, a fine, temporary suspension of registration for a maximum of three years, or permanent removal from the accountants' register.

Appeal to the Business Appeals Tribunal

An appeal against a final ruling of the Accountants Chamber may be lodged with the Appeals Tribunal for the Business Sector (CBb) in The Hague. The appeal period is short: six weeks after the ruling is sent. The CBb is the highest instance in disciplinary cases for accountants. According to established case law of the CBb, in principle, a new complaint cannot be lodged regarding conduct that has already been assessed, unless there are substantially new facts or circumstances. Due to this short time limit and the fact that errors made in the first instance are often difficult to rectify on appeal, timely and expert assistance is of great importance.

Complaint or defense: the role of lawyer and legal expert

Both the complainant and the accused accountant may be assisted. At MKB Juristen, lawyers and (corporate) legal counsel work together in mixed teams, ensuring that we are familiar with both sides of disciplinary law.

If you are filing a complaint against an accountant, we help you formulate the complaint clearly: what conduct do you accuse the accountant of, which fundamental principle of the VGBA has been violated, and with which documents do you substantiate this. If you are defending yourself as an accountant, we construct a well-substantiated statement of defense, prepare you for the hearing, and ensure consistency with any potential civil or criminal proceedings. In doing so, we assist every client, from an international corporation to the baker on the corner with a dispute regarding their annual accounts.

Please note that disciplinary law concerns exclusively the quality of professional conduct. If you also wish to claim compensation for damages, this is handled through civil proceedings; we can handle both processes for you in parallel.

Who can file a complaint?

Not only a client, but in principle any interested party can file a complaint against an accountant. In addition to clients and third parties with a direct interest, supervisory authorities and organizations may also play a role. For example, the Dutch Authority for the Financial Markets (AFM) supervises accounting firms with a statutory audit task and can file a complaint, and the NBA can also act as a professional organization. Whether a third party has a sufficient interest depends on the factual circumstances of the case.

Frequently asked questions about disciplinary law for accountants

How long do I have to file a complaint?

A complaint may be lodged with the Accountants Chamber up to ten years after the alleged conduct.

How much does it cost to file a complaint?

The court fee amounts to €70. If your complaint is upheld, you will receive this amount back.

Can I get compensation for my damages through disciplinary proceedings?

No. The Accountants Chamber cannot award damages. You must file a claim for damages through the civil court. However, both processes can run concurrently.

Do I need a lawyer?

Legal assistance is not mandatory, but it is often advisable in disciplinary cases. A sharp written complaint or a well-substantiated statement of defense, and thorough preparation for the hearing, significantly increase your chances.

More about disciplinary law

Disciplinary law for accountants is one of the professional groups for which we act. Would you like to know how disciplinary law is regulated for other professionals, such as lawyers, notaries, or medical specialists? Then read more on our Disciplinary Law.