Accountancy regulator’s investigation decides against Skipton firm

Institute of Chartered Accountants of England and Wales (ICAEW) has completed its investigation into the negligent advice given to Susan Barrington-Binns, a director of Barringtons Legal Ltd that resulted in Barringtons Solicitors being closed in 2015 due to breaches of the Solicitors Accounts Rules.

Barrington Binns had always maintained the breaches were the result of negligence by the firm’s accountants Patro Ltd and filed a formal complaint with the ICAEW in 2018.

Following the investigation, the ICAEW has upheld the complaint and Skipton-based Patro Ltd has been “severely reprimanded, fined £3,150” and forced to “pay costs of £5,605” by the governing regulatory body.

This decision provides evidence that Patro Ltd improperly issued an accountants report to the Solicitors Regulation Authority (SRA) for the period ended November 2013. This was the first accountants report submitted to the SRA for the then new law firm.

In so doing, Patro Ltd failed to advise Susan Barrington-Binns and Barringtons Legal at the start of the business and consequently failed to recognise a number of important breaches of the Solicitors Accounts Rules or or advise them on important steps to rectify these breaches.

Despite the seriousness of the action of the SRA which included the suspension of Barrington Binns practising certificate, it remains an important fact that there was no loss of client moneys to any client at any time and there was no finding of dishonesty against Barrington-Binns.

As a result of the ICAEW ruling, Barringtons Legal Ltd is currently in the process of issuing proceedings against Patro Ltd for breach of contract and negligence and is seeking substantial damages to compensate the company for the losses that it suffered including the costs of notifying the SRA rectifying the breaches of the SRA Accounts Rules as later identified by new Accountants and the closure of the law firm and the associated costs.

Susan Barrington-Binns (now Susan Hirst) is also in the process of issuing a claim against Patro Ltd for her personal losses including the suspension of her practising certificate for the period of one year from 7th March 2017 to 6th March 2018 and the costs of the Solicitors Disciplinary Proceedings.

TheBusinessDesk.com approached Patro ltd, who declined to comment.