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What is the ICAEW DPB Handbook?

Category: ICAEW & RQ

The ICAEW DPB Handbook (effective from 1 June 2023) is the regulatory rulebook that governs firms holding a Designated Professional Body (Investment Business) licence. <strong>Key sections of the Handbook:</strong> <ul> <li><strong>Part 1 – Introduction:</strong> Explains the legal basis for the DPB exemption under the Financial Services and Markets Act 2000</li> <li><strong>Part 2 – Terms and conditions for a licence:</strong> Eligibility requirements and application process</li> <li><strong>Part 3 – Regulated activities:</strong> Details which activities can be conducted under a licence, including schedules on corporate finance, insurance, and mortgages</li> <li><strong>Part 4 – Conduct of Business Code:</strong> Rules on client agreements, disclosures, complaints, and commission</li> <li><strong>Part 5 – Affiliate regulations:</strong> Rules for non-member principals in licensed firms</li> </ul> <strong>What the Handbook requires:</strong> <ul> <li>Competence – staff must have appropriate knowledge and qualifications</li> <li>Client agreements and disclosures – proper engagement letters and status disclosure</li> <li>Annual compliance review – firms must conduct yearly compliance checks</li> <li>Complaints handling and compensation arrangements</li> <li>Professional indemnity insurance – minimum cover requirements</li> <li>Record keeping – documentation retained for at least 6 years</li> </ul> Firms are subject to periodic ICAEW review. Non-compliance can result in conditions, restrictions, or withdrawal of the licence.