Marketing, Advertisement, and the Code of Ethics in Accountancy
Marketing and
Advertisement Under
Code Of Ethics
PRESENTED BY:- CA MANOJ FADNIS
PAST PRESIDENT ICAI
Volume I
Based on
IESBA Code
of Ethics
2019
Effective
from 1
st
July
2020
New Code of
Ethics
Volume II
CA Act,
Volume III
Case Laws
under
Regulations
and Council
Decisions
Disciplinary
Mechanism
Advertising as per Code of Ethics
The communication to the public of information as to the services or
skills provided by professional accountants in public practice with a
view to procuring professional business.
First Schedule Part I Clause 6
Chartered
Accountant
in
practice
shall
be
deemed
to
be
guilty
of
professional
misconduct, if he:-
“Solicits
clients
or
professional
work
either
directly
or
indirectly
by
circular,
advertisement, personal communication or interview or by any other means”
Provided
that
nothing
herein
contained
shall
be
construed
as
preventing
or
prohibiting —
(i)
any
chartered
accountant
from
applying
or
requesting
for
or
inviting
or
securing professional work from another chartered accountant in practice;
(ii)
a
member
from
responding
to
tenders
or
enquiries
issued
by
various
users
of
professional
services
or
organisations
from
time
to
time
and
securing
professional work as a consequence;
Activities Covered under Clause 6
1.
Advertisement and Notes in the Press :-
Request from another Chartered Accountant for Professional Work
Advertise changes in partnerships or dissolution of a firm, or of any change in
the address of practice and telephone numbers subject to area of distribution
and number of insertions.
Permitted to issue a classified advertisement in the Journal/Newsletter of the
Institute for sharing/ seeking professional work, provided it contains only
basic details.
Activities Covered under Clause 6
2.
Application for empanelment for allotment of audit and other
professional work:-
Where the existence of such a panel is within the knowledge of a
member, he is free to write to the concerned organization with a
request to place his name on the panel.
Not to make roving enquiries
Quote fees on enquiries being received or respond to tenders from
the organizations requiring professional services.
Activities Covered under Clause 6
3.
Responding to Tenders, Advertisements and Circulars:-
Not
respond
to
any
tender
issued
by
an
organization
or
user
of
professional
services
in
areas
of
services
which
are
exclusively
reserved
for
Chartered
Accountants,
such
as
audit
and
attestation
services.
Restriction shall not apply where
v
minimum fee of the assignment is prescribed
v
or where the areas are open to other professionals along with the Chartered Accountants
Activities Covered under Clause 6
4.
Publication of Books, Articles or Presentation
:-
May indicate in a book, article or
presentation the designation “Chartered Accountant” as well as the name of the firm.
5.
Issue of Greeting Cards or Invitations
:- Designation “Chartered Accountant” as well
as the name of the firm may be used provided that such greeting cards or invitations
etc. are sent only to clients, relatives and friends of the members concerned.
6.
Advertisement for Silver, Golden, Platinum or Centenary celebrations may be
published in newsletter and newspaper.
Activities Covered under Clause 6
7.
Sharing
Firm
Profile
with
prospective
Client
:-
Prohibited,
unless
it
is
in
response
to
a
proposed
client’s
specific
query
and
otherwise
not
prohibited
to
be
used by the client.
8.
Television or Movie Credits not be different from the other entries in the credit.
9.
Soliciting
professional
work
by
making
roving
enquiries:-
not
permissible
for
a
member
to
address
letters,
emails
or
circulars
specifically
to
persons
who
are
likely to require services of a Chartered Accountant.
10.
Not
to
Accept
original
professional
work
by
a
member
emanating
from
the
client
introduced to him by another member
Activities Covered under Clause 6
13.
Giving
Public
Interviews:
-
.
Due
care
should
be
taken
to
ensure
that
such
interviews
or
details
about
the
members
or
their
firms
are
not
given
in
a
manner
highlighting their professional attainments.
14.
Strict prohibition to publish advertisements under Box numbers
15.
Educational
Videos:-
No
reference
should
be
made
to
the
Chartered
Accountants
Firm
wherein
the
member
is
a
partner/
proprietor.
Further,
it
should
not contain any contact details or website address.
Activities Covered under Clause 6
16.
Advertisement of Teaching/Coaching activities by members
general
permission
(for
private
tutorship,
and
part-time
tutorship
under
Coaching
organization of the Institute) and
specific
permission
(for
part-time
or
full
time
tutorship
under
any
educational
institution
other than
Coaching organization of the Institute).
Direct
teaching
hours
devoted
to
such
activities
taken
together
should
not
exceed
25 hours a week
members
may
put,
outside
their
Coaching
/teaching
premises,
sign
board
mentioning
the
name
of
Coaching/teaching
Institute,
contact
details
and
subjects
taught therein only.
Council Guidelines
for Advertisement
Areas covered under Council
Guidelines
1.
Write
Ups:-
Writing
of
particulars
according
to
the
information
given
in
the
Guidelines
setting
out
services
issued,
circulated
or
published
by
way
of
or
electronic
mode
or
otherwise
including
in
newspapers,
journals,
magazines
and
websites,
which
include
social
Networking
Websites
(in
Push as well as in Pull mode) in accordance with the Guidelines.
Should not be exaggerated
Not to be font size exceeding 14
Monogram or catch words not permitted
Not contain any information about achievements /awards (except the awards given by the Central or
State Governments or Regulatory bodies
Not make any disparaging references or unsubstantiated comparisons to the work of others.
Areas covered under Council
Guidelines
2.
Website of CA Firm
s
:-
Websites to run on a “pull” model and not a “push” model of the technology
Names of clients and fee charged cannot be given except when required by regulator
Display of passport size photograph permitted
Members may include articles, professional information, bulletin boards, professional updation
Chat
rooms
can
be
provided
which
permit
chatting
amongst
members
of
the
ICAI
and
between
Firms and its clients.
Firm
can
provide
link
of
its
page
on
Social
Networking
site
which
should
not
solicit
people
to
visit
site.
Website
may
provide
a
link
to
the
Website
of
ICAI,
its
Regional
Councils
and
Branches
and
also
the Website of Government or Departments/Regulatory authorities/other Professional Bodies.
Areas covered under Council
Guidelines
3.
Online Third Party Platforms:-
Some of such Websites request Chartered
Accountants or firms to provide consultation and advice through their Websites.
No other service, besides consultancy and advice can be rendered through such
websites.
The name of ‘Chartered Accountants’ firm with suffix “Chartered Accountants” would
not be permitted.
Website, contact address of the Chartered Accountant concerned should not be provided
nor such Website will contain any material which advertises professional achievements
or status of such Chartered Accountant except making a statement that they are
Chartered Accountants.
Areas covered under Council
Guidelines
4.
Publication of Name or Firm Name by Chartered Accountants in the
Telephone or other Directories published by Telephone Authorities or
Private Bodies:-
Entry should not appear in any other section/category except that of Chartered
Accountants
The member/ firm should belong to city in respect of which directory is
published.
Order to be alphabetical
Not be made in a differential or prominent manner giving the impression of
publicity/advertisement.
Areas covered under Council
Guidelines
5.
Application
based
Service
provider
Aggregators:-
It
is
not
permissible
for
members
to
list
themselves
with
online
Application
based
service
provider
Aggregators,
wherein
other
categories
like
businessmen,
technicians, maintenance workers, event organizers etc. are also listed.
Important FAQ
Whether CAs can print photographs on
the visiting cards
Council Decision:-
Mostly
the
business
class
prints
the
photographs
on
their
visiting
cards
for
promoting their business and soliciting clients.
Therefore,
it
is
not
permissible
for
the
Chartered
Accountants
to
their
photographs on visiting card.
Whether a client may use the name of CA firm
mentioning it as a knowledge partner / in the thanking
you message
Council Decision:-
Public
display
of
name
of
Chartered
Accountant
/
Firm,
which
does
not
seem to be covered in any of the permitted categories.
As
per
the
extant
provisions,
use
of
firm
logo
is
not
permitted.
As
regards
use
of
firm
name
by
client
mentioning
a
firm
as
a
knowledge
partner
or
in
the
Thank
You
advertisement,
it
was
clarified
that
in
terms
of
provisions
of
Items
(6)
&
(7)
of
Part-I
of
First
Schedule
to
The
Chartered
Accountants
Act, 1949, it is not permissible.
Can a CA Firm print its vision and values behind its visiting
cards
Council Decision:-
Printing
of
vision
and
values
behind
the
visiting
cards
may
result
in
solicitation
and
therefore
would
be
violative
of
the
provisions
of
Clause (6)
of
Part-I
of
First
Schedule
to
the
Chartered
Accountants
Act,
1949,
and
accordingly not permissible.
Whether Whats App can be used to send messages and mention
services to make people aware that a member has started new
practice.
Council Decision:-
It
is
not
permissible
to
use
to
send
messages
to
make
people
aware about his new practice, and mention the services provided therein.
Can a member in practice print QR (Quick
response) code on his visiting cards, facilitating
easy access to information
Council Decision:-
Printing
of
QR Code on the visiting Cards is permissible,
provided
that
it
does
not
contain
information
that
is
not
otherwise permissible to be printed on a visiting Card.
Thank You
Delve into the nuances of marketing, advertisement, and the ethical standards governing professional accountants. Learn about soliciting clients, advertising guidelines, and permissible activities under the Code of Ethics for Chartered Accountants. Explore the volume based on IESBA Code of Ethics, regulations, and disciplinary mechanisms.
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Presentation Transcript
Marketing and Marketing and Advertisement Under Advertisement Under Code Of Ethics Code Of Ethics PRESENTED BY: PRESENTED BY:- - CA MANOJ FADNIS CA MANOJ FADNIS PAST PRESIDENT ICAI PAST PRESIDENT ICAI
Volume I Based on IESBA Code of Ethics 2019 Effective Effective from 1 from 1st stJuly 2020 2020 July New Code of New Code of Ethics Ethics Volume II CA Act, Regulations and Council Decisions Volume III Case Laws under Disciplinary Mechanism
Advertising as per Code of Ethics The communication to the public of information as to the services or skills provided by professional accountants in public practice with a view to procuring professional business.
First Schedule Part I Clause 6 Chartered Accountant in practice shall be deemed to be guilty of professional misconduct, if he:- Solicits clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means Provided that nothing herein contained shall be construed as preventing or prohibiting (i) any chartered accountant from applying or requesting for or inviting or securing professional work from another chartered accountant in practice; (ii) a member from responding to tenders or enquiries issued by various users of professional services or organisations from time to time and securing professional work as a consequence;
Activities Covered under Clause 6 Advertisement and Notes in the Press : Advertisement and Notes in the Press :- - Request from another Chartered Accountant for Professional Work 1. 1. Advertise changes in partnerships or dissolution of a firm, or of any change in the address of practice and telephone numbers subject to area of distribution and number of insertions. Permitted to issue a classified advertisement in the Journal/Newsletter of the Institute for sharing/ seeking professional work, provided it contains only basic details.
Activities Covered under Clause 6 2. 2. Application for empanelment for allotment of audit and other Application for empanelment for allotment of audit and other professional work: professional work:- - Where the existence of such a panel is within the knowledge of a member, he is free to write to the concerned organization with a request to place his name on the panel. Not to make roving enquiries Quote fees on enquiries being received or respond to tenders from the organizations requiring professional services.
Activities Covered under Clause 6 Responding to Tenders, Advertisements and Circulars: Responding to Tenders, Advertisements and Circulars:- - 3. 3. Not respond to any tender issued by an organization or user of professional services in areas of services which are exclusively reserved for Chartered Accountants, such as audit and attestation services. Restriction shall not apply where v minimum fee of the assignment is prescribed v or where the areas are open to other professionals along with the Chartered Accountants
Activities Covered under Clause 6 4. 4. Publication of Books, Articles or Presentation Publication of Books, Articles or Presentation:- May indicate in a book, article or presentation the designation Chartered Accountant as well as the name of the firm. 5. 5. Issue of Greeting Cards or Invitations Issue of Greeting Cards or Invitations:- Designation Chartered Accountant as well as the name of the firm may be used provided that such greeting cards or invitations etc. are sent only to clients, relatives and friends of the members concerned. 6. Advertisement for Silver, Golden, Platinum or Centenary celebrations may be published in newsletter and newspaper.
Activities Covered under Clause 6 7. 7. Sharing Sharing Firm response to a proposed client s specific query and otherwise not prohibited to be used by the client. Firm Profile Profile with with prospective prospective Client Client:- Prohibited, unless it is in 8. Television or Movie Credits not be different from the other entries in the credit. 9. Soliciting professional work by making roving enquiries:- not permissible for a member to address letters, emails or circulars specifically to persons who are likely to require services of a Chartered Accountant. 10. Not to Accept original professional work by a member emanating from the client introduced to him by another member
Activities Covered under Clause 6 13. 13. Giving Giving Public interviews or details about the members or their firms are not given in a manner highlighting their professional attainments. Public Interviews: Interviews:- . Due care should be taken to ensure that such 14. Strict prohibition to publish advertisements under Box numbers 15. 15. Educational Educational Videos: Accountants Firm wherein the member is a partner/ proprietor. Further, it should not contain any contact details or website address. Videos:- - No reference should be made to the Chartered
Activities Covered under Clause 6 16. 16. Advertisement of Teaching/Coaching activities by members Advertisement of Teaching/Coaching activities by members general permission (for private tutorship, and part-time tutorship under Coaching organization of the Institute) and specific permission (for part-time or full time tutorship under any educational institution other than other than Coaching organization of the Institute). Direct teaching hours devoted to such activities taken together should not exceed 25 hours a week members may put, outside their Coaching /teaching premises, sign board mentioning the name of Coaching/teaching Institute, contact details and subjects taught therein only.
Council Guidelines Council Guidelines for Advertisement for Advertisement
Areas covered under Council Guidelines Write Write Ups: services issued, circulated or published by way of print or electronic mode or otherwise including in newspapers, journals, magazines and websites, which include social Networking Websites (in Push as well as in Pull mode) in accordance with the Guidelines. Ups:- - Writing of particulars according to the information given in the Guidelines setting out 1. 1. Should not be exaggerated Not to be font size exceeding 14 Monogram or catch words not permitted Not contain any information about achievements /awards (except the awards given by the Central or State Governments or Regulatory bodies Not make any disparaging references or unsubstantiated comparisons to the work of others.
Areas covered under Council Guidelines Website of CA Firm Website of CA Firms s:- Websites to run on a pull model and not a push model of the technology Names of clients and fee charged cannot be given except when required by regulator Display of passport size photograph permitted Members may include articles, professional information, bulletin boards, professional updation Chat rooms can be provided which permit chatting amongst members of the ICAI and between Firms and its clients. Firm can provide link of its page on Social Networking site which should not solicit people to visit site. Website may provide a link to the Website of ICAI, its Regional Councils and Branches and also the Website of Government or Departments/Regulatory authorities/other Professional Bodies. 2. 2.
Areas covered under Council Guidelines Online Third Party Platforms: Online Third Party Platforms:- - Some of such Websites request Chartered Accountants or firms to provide consultation and advice through their Websites. 3. 3. No other service, besides consultancy and advice can be rendered through such websites. The name of Chartered Accountants firm with suffix Chartered Accountants would not be permitted. Website, contact address of the Chartered Accountant concerned should not be provided nor such Website will contain any material which advertises professional achievements or status of such Chartered Accountant except making a statement that they are Chartered Accountants.
Areas covered under Council Guidelines Publication of Name or Firm Name by Chartered Accountants in the Publication of Name or Firm Name by Chartered Accountants in the Telephone or other Directories published by Telephone Authorities or Telephone or other Directories published by Telephone Authorities or Private Bodies: Private Bodies:- - Entry should not appear in any other section/category except that of Chartered Accountants The member/ firm should belong to city in respect of which directory is published. Order to be alphabetical Not be made in a differential or prominent manner giving the impression of publicity/advertisement. 4. 4.
Areas covered under Council Guidelines 5. 5. Application Application based for members to list themselves with online Application based service provider Aggregators, wherein other categories like businessmen, technicians, maintenance workers, event organizers etc. are also listed. based Service Service provider provider Aggregators: Aggregators:- - It is not permissible
Important FAQ Important FAQ
Whether CAs can print photographs on Whether CAs can print photographs on the visiting cards the visiting cards Council Decision: Council Decision:- - Mostly the business class prints the photographs on their visiting cards for promoting their business and soliciting clients. Therefore, it is not permissible for the Chartered Accountants to print their photographs on visiting card.
Whether a client may use the name of CA firm Whether a client may use the name of CA firm mentioning it as a knowledge partner / in the thanking mentioning it as a knowledge partner / in the thanking you message you message Council Decision: Council Decision:- - Public display of name of Chartered Accountant / Firm, which does not seem to be covered in any of the permitted categories. As per the extant provisions, use of firm logo is not permitted. As regards use of firm name by client mentioning a firm as a knowledge partner or in the Thank Youadvertisement, it was clarified that in terms of provisions of Items (6) & (7) of Part-I of First Schedule to The Chartered Accountants Act, 1949, it is not permissible.
Can a CA Firm print its vision and values behind its visiting Can a CA Firm print its vision and values behind its visiting cards cards Council Decision: Council Decision:- - Printing of vision and values behind the visiting cards may result in solicitation and therefore would be violative of the provisions of Clause (6) of Part-I of First Schedule to the Chartered Accountants Act, 1949, and accordingly not permissible.
Whether Whats App can be used to send messages and mention Whether Whats App can be used to send messages and mention services to make people aware that a member has started new services to make people aware that a member has started new practice. practice. Council Decision: Council Decision:- - It is not permissible to use WhatsApp to send messages to make people aware about his new practice, and mention the services provided therein.
Can a member in practice print QR (Quick Can a member in practice print QR (Quick response) code on his visiting cards, facilitating response) code on his visiting cards, facilitating easy access to information easy access to information Council Decision: Council Decision:- - Printing of QR Code on the visiting Cards is permissible, provided that it does not contain information that is not otherwise permissible to be printed on a visiting Card.
