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Council Interpretation 401
Practice Names
401/1 It is in the interest of all members of the Institute that members and firms be allowed to conduct their practices under names which reflect their individual preferences and which are appropriate for their particular marketplaces. This interpretation sets out guidance for members and firms in the selection of practice names and in the identification with other professional service organizations.
401/2 Members, firms and related function businesses or practices should ensure, at all times, that any information contained in their practice names about themselves, their firms or their services is accurate. The following are examples of practice names containing inappropriate information:
(a) Any implication in the practice name that the practising unit is larger than it is, such as by use of plural descriptions or other misleading use of words. The use of "and Company" or similar wording in a practice name is permitted, if it is not misleading with respect to the total number of full-time equivalent persons providing professional services within the practice;
(b) Any implication in the practice name that a member is a partner or a former partner of a practice, when the member is not;
(c) Any reference to representation or association which is not in conformity with the facts;
(d) Any reference in the practice name to particular services provided where the practice is not currently able to provide those services;
(e) Any statement in the practice name that may create false or unjustified expectations as to the results of a particular engagement;
401/3 When a member, firm or related business or practice participates in an organization, whose members practice public accounting internationally, with professional engagements accepted and reports or opinions issued in the international name, the member, firm or related business or practice may refer to such international name on professional stationery and in name plates, directory listings, announcements and brochures by using the term "internationally", or "international firm". General references to "offices throughout the world" or "offices in principal cities throughout the world" imply broad coverage and should be used only where the international organization's members practice public accounting in many countries.
401/4 A member, firm or related business or practice may have an arrangement with another person or organization whereby one acts for the other in a particular location, and the assignment, by agreement may be in the name of one of them. In such circumstances it is appropriate, if desired, for the member, firm or related business or practice to refer to the fact of such representation by a suitable reference to the location and the name and/or address and professional designation of the representative, with a description of the relationship as being "represented by". If representation arrangements exist in a number of locations it may not be possible to give full details of each, and in such case it would be appropriate, if desired, to refer to the fact of representation in the particular locations, specifying the locations individually. Generally references such as "represented throughout the world", which may not be factual and may be misleading, should be avoided. In any public reference to representation, the representative must be a person or organization practising public accounting.
401/5 Members, firms or related businesses or practices may associate themselves with international organizations which do not practice public accounting but which consist of members who are practising public accounting and which exist primarily to provide their members with access to international public accounting services. In these cases it is appropriate to make public reference on professional stationery and elsewhere to membership in a bona fide international organization by using a term such as "a member of (name), an international association of accounting firms". Terms such as "internationally" or "international firm" should not be used. General references such as "members throughout the world" should be used only where there are in fact members of the organization in many countries. References such as "represented throughout the world" should be avoided unless they are factual and not misleading.
401/6 Members, firms and related businesses or practices should ensure that their practice names or styles are not self-laudatory and do not claim superiority over any other member, firm or related business or practice.
Care should be taken in using the word "The" in the firm name so that it does not imply exclusivity.
Practice names that might tend to lower public respect for the profession should not be used. Care should also be exercised with respect to the use of acronyms.
401/7 In general, approval will be given to non-personal firm names unless they are misleading or contravene professional good taste. However, there may be certain other considerations which will affect the approval decision. A practice name that is so similar to that of another firm registered in the same area as to cause confusion in the minds of the public may not be approved. Consideration will also be given to cultural sensitivities in deciding whether to approve a non-personal firm name.
401/8 A firm that is registered in a province as a limited liability partnership may be required by legislation or regulation to carry on business under its limited liability partnership name. Where the firm also carries on business in Manitoba, its members will be deemed not to be in violation of Rule 401 in Manitoba simply by virtue of the fact that provincial statutes in Manitoba do not recognize limited liability partnerships.
401/9 The Membership Committee, in its discretion, is permitted to be flexible in transitional situations. For example, a member engaged in the practice of public accounting as a sole proprietor or, where permitted, an incorporated professional, may apply to the Membership Committee for permission to practise for a specified period of time under both the member's approved name and, with the predecessor's written authorization, the name used by a predecessor sole proprietor or firm.
Other situations where transitional flexibility may be granted include those where a previously approved firm name becomes inappropriate. An example of such a situation would occur when, due to the departure of a partner, the firm name becomes misleading with respect to the size of the firm. In such cases, the member or firm may apply to the Membership Committee for permission to continue to use the name for a specified period of time.
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