Historic opportunity for accountancy bodies

Friday 24.09.2004 11:06 Uhr
Rubrik: News

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 www.cimaglobal.com/consolidation

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