GUIDELINES FOR ADVERTISEMENT FOR MEMBERS IN PRACTICE

Presented by:

CA Sana Baqai

New Delhi

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Jaipur Branch of ICAI

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28^th July, 2023

AGENDA

Clause (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949

Advertisement Guidelines Issued by Council

Use of Logo

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WHY CA’S ARE NOT ALLOWED TO ADVERTISE?

It was prohibited because of the principle that a professional should command work by his reputation not by advertising.

WHAT MIGHT HAPPEN IF CA STARTED ADVERTISING?

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CLAUSE (6) OF PART I OF THE FIRST SCHEDULE TO THE CHARTERED ACCOUNTANTS ACT, 1949

CLAUSE (6) OF PART I OF THE FIRST SCHEDULE TO THE CHARTERED ACCOUNTANTS ACT, 1949

• A Chartered Accountant in practice shall be deemed to be guilty of professional misconduct, if he:
• Clause (6): 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;

Solicitation of Professional Work

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SOME FORMS OF SOLICITING WORK WHICH THE COUNCIL HAS PROHIBITED

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ADVERTISEMENT AND NOTES IN THE PRESS

Press Advertisement for changes in partnership, address etc., giving actual facts-Allowed.

Press Advertisement

It is allowed to request another Chartered Accountant in practice for professional work.

Request Other CA

Allowed. It can only contains the CA name, address, telephone, fax number, E-mail address and address(es) of social Networking sites of members. They can also give mere factual position of experience and area of specialization.

Classifieds in ICAI Journal

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Advertisement and personal canvassing for soliciting work not permitted.

EXEMPTIONS

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1. Advertisement for recruiting staff in the member’s own office.

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• Advertisement inserted on behalf of clients requiring staff or wishing to acquire or dispose of business or property.

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• Advertisement for the sale of a business or property by a member acting in a professional capacity as trustee, liquidator or receiver.

APPLICATION FOR EMPANELMENT FOR ALLOTMENT OF AUDIT AND OTHER PROFESSIONAL WORK

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Allowed to write to the concerned organization with a request to place his name on the panel. However, it would not be proper for the Chartered Accountant to make roving enquiries by applying to any such organization for having his name included in any such panel.

RESPONDING TO TENDERS, ADVERTISEMENTS AND CIRCULARS

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• CA can respond to tenders subject to Guidelines issued by ICAI.

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• CA can respond to assignments where quotations have been called for from practicing members/firms through individual letters.

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• CA can respond to tenders where only technical bid has been asked for, followed by financial quotations request from the shortlisted members through individual letter.

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• EMD / Security Deposit: The Council is of the view that while interference with the practices prevailing for requirement of EMD/Deposit is not required.

GUIDELINE FOR RESPONDING TO TENDER

• A member of the Institute in practice
• shall 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.
• However, such restriction shall not be applicable
• where minimum fee of the assignment is prescribed in the tender document itself; or
• where the areas are open to other professionals along with the Chartered Accountants.
• The fees quoted by the member shall not be less than the minimum fee mentioned in the tender.

Guideline No. 1-CA(7)/03/2016 dated 7^th April, 2016

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PUBLICATION OF BOOKS, ARTICLES OR PRESENTATION

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Publication of Books or Articles or Presentation –Allowed – Association with CA firm can not be disclosed.

ISSUE OF GREETING CARDS OR INVITATIONS

• Greeting Cards, Invitations – Allowed only to clients, relatives and friends of the CA.

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• Allowed to use designation “Chartered Accountant” as well as the name of the firm.

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• Not Allowed to write Professional designation, status and qualifications etc.

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ADVERTISEMENT FOR SILVER, GOLDEN, PLATINUM OR CENTENARY CELEBRATIONS

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• It is not permitted to advertise the events organised by a Firm of Chartered Accountants.

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• Allowed to advertisement for Silver, Golden, Diamond, Platinum or Centenary celebrations of the Chartered Accountants Firms may be published in newspaper or newsletter.

SPONSORING ACTIVITIES

• CA or CA Firm is not permitted to sponsor an event.
• CA or CA Firm may sponsor an event conducted by a Programme Organizing Unit (PoU) of the ICAI with prior Approval of CPE Directorate.

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Event Sponsorship

• Members sponsoring activities relating to Corporate Social Responsibility may mention their individual name with the prefix “CA”.
• However, the mention of Firm name or CA Logo is not permitted.

Sponsoring CSR Activities

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ADVERTISEMENT OF TEACHING/COACHING ACTIVITIES BY MEMBERS

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• An advertisement of Coaching /teaching activities by a member in practice may amount to indirect solicitation and is not allowed.

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• Advertising their association with Coaching /teaching activities through hoardings, posters, banners and by any other means, is not allowed.

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• Allowed to put sign board outside their Coaching /teaching premises, mentioning the name of Coaching/teaching Institute, contact details and subjects taught therein only.

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• For the size and type of sign board, the Council Guidelines as applicable to CA Firms shall apply.

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SHARING FIRM PROFILE WITH PROSPECTIVE CLIENT

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Allowed to share Firm’s profile only if it is asked for by prospective client.

TELEVISION OR MOVIE CREDITS

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• Permitted if the exhibition of name of the Member or Firm is not made differently as compared to other entries in the credits.

SOLICITING PROFESSIONAL WORK BY MAKING ROVING ENQUIRIES

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• Roving enquires amounts to professional misconduct. – Not Allowed

ACCEPTANCE OF ORIGINAL PROFESSIONAL WORK BY A MEMBER EMANATING FROM THE CLIENT INTRODUCED TO HIM BY ANOTHER MEMBER

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GIVING PUBLIC INTERVIEWS

Giving Public interviews; may be mentioning details about him/ his firm, not leading to Advertisement -Allowed. (should not highlight professional attainments).

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MEMBERS AND/OR FIRMS WHO PUBLISH ADVERTISEMENTS UNDER BOX NUMBERS

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• Members/Firms are prohibited from inserting advertisements for soliciting clients or professional work under box numbers in the newspapers.

EDUCATIONAL VIDEOS

• No reference to the Firm where the member is Partner or Proprietor
• No contact details or website address

Don’ts

• Educational videos can be uploaded on internet

Do’s

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CLAUSE (7) OF PART I OF THE FIRST SCHEDULE TO THE CHARTERED ACCOUNTANTS ACT, 1949

CLAUSE (7) OF PART I OF THE FIRST SCHEDULE TO THE CHARTERED ACCOUNTANTS ACT, 1949

• A Chartered Accountant in practice shall be deemed to be guilty of professional misconduct, if he:
• Clause (7): advertises his professional attainments or services, or uses any designation or expressions other than chartered accountant on professional documents, visiting cards, letter heads or sign boards, unless it be a degree of a University established by law in India or recognised by the Central Government or a title indicating membership of the Institute of Chartered Accountants of India or of any other institution that has been recognised by the Central Government or may be recognised by the Council;
• Provided that a member in practice may advertise through a write up, setting out the services provided by him or his firm and particulars of his firm subject to such guidelines as may be issued by the Council.

Advertisement by CA in Practice

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ADVERTISEMENT GUIDELINES ISSUED BY ICAI

GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN PRACTICE

• The Member(s)/Firm(s) should ensure that the contents of the Write up are true to the best of their knowledge and belief and are in conformity with these Guidelines.
• “Write up” means the writing of particulars according to the information given in the Guidelines setting out services rendered by the Members or firms and any writing or display of the particulars of the Member(s) in Practice or of firm(s) 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 in Pull mode).
• The write-up may have the Signature, Name of the Member/ Name of the Partner signing on behalf of the firm, Place and Date.

Issued Pursuant to Clause (7) of Part I of the First Schedule to the Chartered Accountants Act, 1949

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GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN PRACTICE

The write-up may include only the following information:

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14. Passport style photograph
15. Details of Employees (Nos. - )

(a) Chartered Accountants -

(b) Other Professionals –

(c) Articles/Audit Assistants

(d) Other Employees

• Names of the employees and their particulars on the lines allowed for a member as stated above.
• Services provided
• Position held as Director or Managing Director in a Management Consultancy Company registered with the Institute

(A) For Members

• CA ……………… Name
• Membership No. with Institute
• Age
• Date of becoming ACA
• Date of becoming FCA
• Date from which COP held
• Recognized qualifications
• Languages known
• Telephone/Mobile/Fax No.
• Professional Address
• Website
• E-mail
• CA Logo

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GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN PRACTICE

The write-up may include only the following information:

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10. CA Logo
11. Details of Employees (Nos. - )

(a) Chartered Accountants -

(b) Other Professionals –

(c) Articles/Audit Assistants

(d) Other Employees

• Names of the employees and their particulars on the lines allowed for a member as stated above.
• Services provided
• Affiliation with a Network registered with the Institute

(B) For Firms

• Name of the Firm …………………… Chartered Accountants
• Firm Registration No. with Institute
• Year of establishment
• Professional Address(s)
• Working Hours
• Tel. No(s)/Mobile No./Fax No(s)
• E-mail
• No. of partners
• Name of the proprietor/partners and their particulars on the lines allowed for a member as stated above including passport style photograph.

GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN PRACTICE

• The write-up should not be false or misleading and bring the profession into disrepute.
• The write-up should not claim superiority over any other Member(s)/Firm(s).
• The write-up should not be indecent, sensational or otherwise of such nature which may likely to bring the profession into disrepute.
• The write-up should not contain testimonials or endorsements concerning Member(s).
• The write-up should not contain any other representation(s) that may like to cause a person to misunderstand and/or to be deceived.
• The write-up should not violate the provisions of the ‘Act’, Rules made there under and ‘The Chartered Accountants Regulations,1988’.

Other Conditions

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GUIDELINES FOR ADVERTISEMENT FOR THE MEMBERS IN PRACTICE

• Not allowed to use Monogram of any kind or any kind of catch words
• The write-up should not include the names of the clients (both past and present)
• The write-up should not be of font size exceeding 14.
• The write-up should not contain any information other than stated above.
• The write-up should not contain any information about achievements /award or any other position held.
• It is mandatory to quote the membership number or Firm Number issued by ICAI, as the case may be.
• The ICAI may issue a reasoned directive for removal or withdrawal of the whole write-up or any part thereof.

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Other Conditions

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OTHER DESIGNATIONS

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• CA is not allowed to use other designations like Income-tax Consultant, Cost Accountant, Company Secretary, Cost Consultant, Management Consultant, Corporate Lawyer, ‘Member of Parliament’, ‘Municipal Councilor’ nor any other functionary in addition to that of Chartered Accountant.

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• CA can mention “Insolvency Professional” or “Registered Valuer” respectively on his visiting card and letter head.

ONLINE THIRD PARTY PLATFORMS

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• No other service, besides consultancy and advice can be rendered through such websites.

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• This would be permitted subject to the condition that on the Website, contact address of the Chartered Accountant concerned is not 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.

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• The name of Chartered Accountants’ firm with suffix “Chartered Accountants” would not be permitted.

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APPLICATION BASED SERVICE PROVIDER AGGREGATORS

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• It is not permissible for CA to list themselves with online Application based service provider Aggregators, wherein other categories like businessmen, technicians, maintenance workers, event organizers etc. are also listed.

PUBLICATION OF NAME OR FIRM NAME BY CHARTERED ACCOUNTANTS IN THE TELEPHONE OR OTHER DIRECTORIES

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• The entry should not appear in any other section/category except that of Chartered Accountants.

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• The member/firm should belong to the town/city in respect of which the directory is being published.

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• The order of the entries should be in alphabetical order only.

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• The entry should not be made in a differential or prominent manner giving the impression of publicity/ advertisement.

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• The entries should not be restricted and should be open to all the Chartered Accountants/firms of Chartered Accountants in the particular city/town in respect whereof the directory is published.

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• The CA can also include their names in trade/ social directories.

APPEARANCE OF CHARTERED ACCOUNTANTS ON ELECTRONIC MEDIA (INCLUDING INTERNET)

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• CA can appear on television, films and Internet and agree to broadcast in the Radio or give lectures at forums and may give their names and describe themselves as Chartered Accountants.

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• Special qualifications or specialised knowledge directly relevant to the subject matter of the programme may also be given.

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• Firm name may also be mentioned, however, any exaggerated claim or any kind of comparison is not permissible.

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• What he may say or write must not be promotional of him or his firm but must be an objective professional view of the topic under consideration.

SIZE OF SIGN BOARD

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• CA can exercise their own discretion and good taste while keeping in mind the appropriate visibility and illumination (limited to the sake of visibility).

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• Use of glow signs or lights on large-sized boards as is used by traders or shop-keepers is not permitted.

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• CA can put the name plate at his residence with the designation Chartered Accountant, but cannot use his firm name.

CAN CA DISPLAY SERVICES IN OFFICE?

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Permitted to display inside office premises only.

USE OF CA LOGO – FOR MEMBERS OF ICAI

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CAN WE MAKE OUR OWN LOGO FOR CA?

Absolutely Not!

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USE OF CA LOGO

• Logo contains the letters CA with tick mark (upside down) inside a rounded rectangle and white background
• The letters CA has been put in blue, and tick mark has been put in green color.
• Colors of the Logo is:
• Blue = 80 C, 40 M, 40K
• Green = 50C, 80Y
• Logo can also be used in Black and White where ever necessary. Colors of the Logo is:
• Black = 100K
• Grey = 50K

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For Members of ICAI

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USE OF CA LOGO

Some Do’s and Dont’s

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RECENT DECISION OF ETHICAL STANDARDS BOARD - ICAI

• It is not permissible for a member to use WhatsApp to send messages to make people aware about his practice, and mention the services provided therein.

Source: ICAI Website (https://www.icai.org/post.html?post_id=958)

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CERTAIN ISSUES

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• Whether the office of a Chartered Accountant is permitted to go in for ISO certification or other similar certifications?

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• Yes it is permitted. But they cannot write ISO Certified on on his professional documents, visiting cards, letter-heads or sign boards etc.

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• A member in practice has cleared any certificate course of ICAI i.e. Certificate course on Ind AS, Certificate course on GST etc. Is he permitted to print such qualifications on visiting cards, letterheads, and other stationery?

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• No. It is not permissible for a member to mention the name of certificate course of the ICAI cleared by him. However, wherever diploma is awarded by the ICAI, the same can be mentioned on the visiting cards, letterheads, and other stationery. E.g. DISA (ICAI).

CERTAIN ISSUES

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• Can a member in practice print QR (Quick response) code on his visiting cards, facilitating easy access to information?

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• Yes, 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.

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• Whether a member in practice can advertise their services on social networking websites?

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• Yes, a member in practice may advertise through a write up on social networking websites setting out his particulars or services, subject to the Council Guidelines.

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• Whether a write-up in an Advertisement may contain any information about an achievement or award given to a member?

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• Yes, a write-up may contain information about an achievement or award given to a member, provided it has been awarded by the Central or State Governments or Regulatory bodies.

CERTAIN ISSUES

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• Whether a member in practice or a Firm may give link of its website on a social networking site?

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• Yes, a member in practice or a Firm may provide link of its webpage on Social Networking site. However, the members should not solicit people to visit or request to like their respective page(s) on such social Networking site.

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• What should be the sequence /order of designations, while a member also uses the designation ‘Dr.’ along with ‘CA’?

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• The member is free to use the designation ‘Dr.’ along with ‘CA’ in whichever sequence/order he wants to.

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• Can a Chartered Accountant in practice give the date of setting up the practice or date of establishment on the letterheads and other professional documents, etc.?

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• No, date of setting up of the firm on the letterheads and the professional documents, etc. should not be mentioned. However, in the Website, the year of establishment can be given.

CA Sana Baqai

Sana.Baqai@kysbindia.com

+91-9971938000