Consolidation of ICAEW, CIMA and CIPFA proposed

[jbladeus]

Just received this interesting news by email. Would like to hear comments on this news and its implications, especially from guys based in the UK like Azeem, Zubair etc.

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Historic opportunity for accountancy bodies

Strategic consolidation proposed - 13 September Proposals to create a powerful new voice for the accountancy profession were launched on 13 September when three of the leading UK accountancy bodies announced plans for strategic consolidation. The plans are intended to deliver broader and deeper member services, provide increased influence across industry and Government and ensure the long term future of the profession for the next generation of Chartered Accountants.

The proposals aim to bring together the Chartered Institute of Management Accountants (CIMA), the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Institute of Chartered Accountants in England and Wales (ICAEW) to create an organisation with 200,000 members and a significant student base across a wide number of countries. The new body will unify the business, practice and public sectors and quickly become the authoritative voice across the accountancy profession.

Existing members of all three bodies will be entitled to keep their current designatory letters and titles. Individual routes to qualification will be preserved during the post-consolidation transition. Any future change s to these qualifications would have to maintain the same high standards of entry and would be subject to a three-quarter majority of the Governing Council of the new body.

Strategic consolidation has so far received an `in principle' yes from each of the governing Councils of the three Institutes. Formal proposals will be put to Councils in December with resolutions expected to be put to the members of all three bodies early to mid 2005. Subject to a positive mandate, permission will then be sought for a new Royal Charter.

At a joint press conference the three professional bodies issued the following statement

"Government and industry need a single overarching body with whom they can engage. A strategic amalgamation of the type proposed will produce a powerful new organisation working in the public interest with an unrivalled breadth and depth of technical expertise, enabling powerful thought leadership on business, professional and regulatory issues, as well as the highest professional standards.

"It will also mean enhanced status and a more powerful resource for members, as the benefits of consolidation are unlocked, leading to improved support as well as stronger national and international influence."

Recent independent strategic reviews by CIMA, CIPFA and ICAEW indicate that consolidation would act as a powerful accelerator to achieving common goals. In particular, the size, scope and resources of the new body will increase the level of assistance available to members throughout the lifecycle of their careers.

Over the next few months the Institutes will be rolling out an extensive nationwide campaign to present the findings of their strategic reviews and present the benefits of consolidation as a potential fast track towards common goals.

Keep up to date with discussions about the consolidation proposals and share your views at http//www.cimaglobal.com/consolidation


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Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

[Goodman]

there are a number of questions which needs answering. I think two are of prime importance.

its a fact that ICEAW is the largest body, it has achieved tremendous success in terms of professional standards, education & Training and so on and so forth. The question is, if ICAEW has been so successful over all these years, why is it so that they are now aligning themselves with two smaller bodies. The equation works out to say, ICAEW members are likely to dilute their prestige, CIMA members will gain a bit and CIPFA will gain a lot. So one needs to ascertain as to why this is happening, what are the driving forces behind this?

I think though ICEAW has been successful historically, competition lies ahead. The competition is of different nature, requires a global approach or at least a Europe wide approach, requires loads and loads and loads of resources and I suspect ICAEW is not geared up for such a situation. Loads of resources are needed for services ranging from increased compliance costs to international tax, accounting, auditing and business services developments. Mind you the introduction of AIDB (Accountancy investigation and disciplinary borard) will mean that all professional bodies members will be subject to the same level of roasting. All this requires systems to be put in place. in order to put these systems in place you need resources and where will they come from? so a strategic alliance is the possible answer (it has always been)



The second thing is will it happen now? I think its a very close call. CIPFA and CIMA membership are likely to approve. ICAEW members might not. but again ICAWW council might take the same stance which they took on practice review, when the practice review was voted out by members a number of times the council said, ok enough is enough; if members don’t agree this time we are going to impose it because it now poses a image problem for the institute as institute was the only body without such a scheme. I personally think it will happen but probably at a later stage.


Thanks

<u>Final note</u> I was speaking to one of my friends who happens to be a partner in a relatively bigger firm, he is ACCA but I think all other partners are ICAWE and they are monitored by ICAEW. He joked by saying “soon ICAEW will be taken over by ACCA and we will call their members A-ACCA ( Assistant – Associate Chartered Certified Accountants) he is a real funny character.

[Pracs]

Come to think of it... is their a threat or a 'preceived threat' viz a viz ACCA.. I am not familiar about the numbers involved, but i think there is a possibility .??

I know about in Pakistan it is will be a threat in the next ten years.. ACCA has local variants now and there are talks about ACCA getting the 'right to practice'.. it may sound far fetched but industry will start to prefer ACCA's with the lower cost of services etc....

"Allah does not change the state of people unless they change what is within themselves" Quran 1311

[Ehrar_ACMA]

Dear Friends

As u k now in Uk laws are very stritc as in Pakistan...dont u feel they will create Monopoly in this regard......becoz only ICAEW & CIMA) are enough to cover all busniess areas............

Regards

Kh. Ehrar Hasan
APA,ACMA,CIA,M.A(Eco),
CIMA(Inter)-IBP,Stage-I