The determination of the Disciplinary Tribunal of the New Zealand Institute of Chartered Accountants said the case involved breaches of the institute's rules and code of ethics by a "senior and very experienced member".
In a statement yesterday, Mr Ibbotson, who had already retired from public practice, said he accepted the findings but stressed there was no dishonesty or misappropriation of funds, no funds advanced without the clients' prior agreement, and no clients suffered financial loss.
While he was one of the shareholders in the company to which the funds were advanced, he did not have a controlling interest in the company, he said.
Some of those involved had been his clients for 35 years, trusted him to act in their best interests and gave him control of their finances, the decision said.
The tribunal accepted Mr Ibbotson had briefed the clients concerned in general terms about some of the proposed loans.
However, there was evidence that clients were unaware of other loans until well after they had been made.
It was submitted there was no evidence clients suffered any loss. The loans were eventually repaid and commercial interest rates paid.
However, the advances were intended to be "short term".
They were not, and as a result, it appeared some clients were deprived of funds at a time they were experiencing their own liquidity issues, the decision said.
Interest was not accrued or recognised in the accounts of the client lenders during the period it should have been, which could have put those clients and their directors at risk of tax penalties and associated default interest.
The decision said Mr Ibbotson claimed to have had the interests of his clients at heart and to have given them sound, objective advice.
However, the tribunal said given his position as a trusted business adviser, he needed to ensure his clients were fully informed and that he did not breach any of the institute's rules or ethics.
When reaching its decision, the tribunal took into account that no client complained to the institute about his conduct - the complaint was made by the firm with which he had been associated and with which he was in dispute, the decision said.
Other mitigating factors included his guilty plea and his preparedness to give evidence and submit to cross-examination, his unblemished record in more than 40 years of practice, his age and the fact he had retired from public practice, and his substantial contribution to the profession and his local and regional community.
Mr Ibbotson was ordered to pay the institute $38,000 for costs and expenses of the hearing before the tribunal and the investigation by the professional conduct committee.
In his statement yesterday, Mr Ibbotson said the complaints were not initiated by the clients themselves, "but by the new directors of Ibbotson Cooney Ltd, [now ICL Chartered Accountants] and followed on from a period of internal conflict stemming from the sale of my shareholding in the firm in 2008".
The company has five directors - Blair Pedofsky, Cam Dykes, George Collier, Janette Matheson and Simon Wearing.
When contacted, one of the directors, who said he was speaking on behalf of all the directors, said the company strongly rejected the complaint was the result of an internal dispute.
The director said the complaint, which was "significant and serious", was initiated by a client to the company "and we have an ethical requirement to follow that complaint up through the institute, which we did".
As soon as the company became aware of the complaint, it had acted "as we were required to".
The client remained with the firm.
The disciplinary process was an independent and robust process. Mr Ibbotson had not had any association with the firm since August, 2010, the director said.
Former Central Otago mayor Malcolm Macpherson supported Mr Ibbotson, saying he had made a long, distinguished and publicly acknowledged contribution to his firm, to business, to the profession and to his community.
Describing him as one of the district's "unsung heroes", he said Mr Ibbotson had put personal energy and commitment into the community over a long period.
If looking for an individual who had done the most effective work on behalf of the community for no personal reward, then you would be "hard-pressed" to find someone more prominent than Mr Ibbotson, Dr Macpherson said.
