The way in which members respond when a complaint is made against them can have a significant impact on both the process and the outcome of the dispute. This applies to both complaints being handled under the member’s own complaints handling policy or when they are being investigated by the Professional Conduct Committee (PCC). 

While dealing with a complaint can be challenging, members can exacerbate the situation by responding inappropriately or behaving abusively, or being dishonest.

Rebecca Stickney and Kate Dixon, leaders of the professional conduct teams in New Zealand and Australia respectively, discuss the potential impact of such conduct, and offer suggestions about handling complaints professionally to expedite a resolution and avoid additional sanctions. 

Preparing for, and dealing with, client complaints at a firm level

Stickney says all public practices must have a documented complaint handling policy which will assist in resolving issues. Practitioners are also required to describe their complaints policies in their terms of engagement. 

“Having a robust complaint handling policy is an important part of compliance with quality management standards, and other standards and CA ANZ regulations. Such policies enable members to consider in advance their approach to resolving disputes, which are an inevitable part of business,” she says. 

Dixon says this doesn’t mean just agreeing with a client, but clients are assisted by open communication and understanding upfront how disputes will be handled. It also helps a member to cope better if an issue arises, which may minimise business disruption and reduce potential stress and acrimony.

“We receive a lot of complaints which could have been resolved relatively easily with a phone call to the client or an apology at an early stage,” says Stickney. “Members should offer a little bit of give and take, and sincerely attempt to get to the bottom of the issue.” 

Stickney urges members to ask themselves, how would they want to be treated if they were in a similar scenario by a service provider?

“Members who double down, or don’t respond, or display obdurate or rude behaviour, usually aggravate the matter.”

She notes other best practice tips for dealing with a complaint include (what psychologists call) ‘active listening’, to the client’s concerns and making a record of them, understanding the facts and, if appropriate, escalating the issue or having someone else peer-review the file.

“Discuss options to remedy the problem,” she says. “Act promptly and reflect on whether there are systems or processes that need to change.”

Dixon also recommends members keep good records of the communications and steps undertaken, “as these can be helpful if a complaint is later made to CA ANZ or NZICA, to demonstrate that the member has acted professionally.” 

“We receive a lot of complaints which could have been resolved relatively easily with a phone call to the client or an apology at an early stage.”

Dealing with a complaint being investigated by the PCC

Dixon says members have a professional obligation in accordance with the CA ANZ by-laws and NZICA rules to respond in writing to complaints, to provide information and to engage in a review or other type of investigation, if required by the PCC.

She adds there are consequences to not properly responding to a complaint or other request from the PCC. 

“One obvious risk is that the PCC doesn’t have all the relevant information, which could result in an outcome that might have been different if all the relevant information had been provided.

“The process could also take longer, could cost more and may lead to more serious outcomes. Members who don’t respond promptly, or at all, may find they are referred to the Disciplinary Tribunal, and failure to respond can result in membership being suspended or terminated.” 

“Additional charges are often laid regarding the member’s failure to engage or refusal to engage constructively in the complaints process,” explains Stickney. 

“In these cases, the Disciplinary Tribunal has often found such conduct to be incompatible with ongoing membership, as it demonstrates disdain for the organisation’s regulatory oversight function. It can also undermine protection of the public and maintenance of professional standards, because the member is in effect unregulatable.” 

Dixon adds that lack of insight by a member into their conduct is also seen as problematic by the PCC and may impact the outcome of the investigation. Lack of insight may be exacerbated by an outdated understanding of the relevant standards, including the code of ethics.

Stickney says while members can take a robust defence to a complaint, “It is best not to defend the indefensible. Consider early whether you need peer support or to get some advice, including a lawyer and consider if you’ve got recourse to professional indemnity insurance.”

Unacceptable behaviour

When responses from members are particularly unpleasant or aggressive, Stickney says the disciplinary bodies might be so unimpressed by a member’s conduct that it impacts the outcome. 

Dixon recalls one case where the member’s communications to the investigator in relation to the complaint were unprofessional. The tribunal considered the member’s conduct unacceptable and imposed a $5000 fine as a deterrent to this type of conduct.

In another case, a member provided one version of a document to the PCC and the complainant, and another version of the same document to the client.

“When the disciplinary bodies were considering the imposition of sanctions, the member’s poor conduct was regarded as an aggravating factor. The member misled the PCC and, in addition to being required to do further ethics training, they were fined $5000.” 

Stickney recalls a recent case where a member was suspended for 12 months due to their abusive behaviour in the complaints process, including making unsubstantiated and unprofessional allegations against staff and the organisation. 

“The Disciplinary Tribunal found that should such behaviour continue and the member appear before the tribunal again, membership would be terminated.” 

Likewise, unprofessional and rude behaviour towards clients can lead to serious disciplinary outcomes, including loss of membership in serious cases, adds Dixon. 

Stickney agrees. “The bottom line is that aggravating or abusive behaviour towards staff or clients is not tolerated and will almost certainly result in an additional sanction. It is important for members to think about who their audience is when responding to a complaint and reflect on how their tone, actions and insights can influence positively or negatively the outcome of a complaint.”

Take away

For more Acuity articles on this important topic, we recommend reading, ‘Streamlining disciplinary proceedings’ and ‘Ethical dilemmas: Unprofessional behaviour’.

Support from your CA peers

Members of CA ANZ have access to the Chartered Accountants Advisory Group (CAAG), a confidential support service of senior professionals who can assist you with ethical and professional challenges.