ICAS

Why ICAS is against consolidation

by Des Hudson, chief executive of ICAS
[From accountancyage.com]

ICAS is against the consolidation of the profession, instead seeing the value in keeping an exclusive focus on chartered accountants

The proposed consolidation of the accountancy profession in the UK via a merger of the Institute of Chartered Accountants in England and Wales with the Chartered Institute of Public Finance and Accountancy is predicated upon the unproven belief that one centralised monolith would be more effective than several institutes.

The ICAEW further contends that current relationships between the major institutes tend to emphasise competition rather than partnership, resulting in the profession, as a whole, experiencing difficulty speaking with one voice. The Institute of Chartered Accountants of Scotland regards both arguments as unpersuasive.

Rather than being more effective, one monolithic institute would be just as likely to be less effective. Of necessity, such an entity would be a broad church representing various different interest groups, making the process of representation, and lobbying on behalf of, these differing interest groups much more problematic. At least in part the various institutes exist within the UK because they represent different member needs.

A merger of institutes representing chartered accountants would have the potential of being a much more homogenous grouping than a merger of institutes representing, not only chartered accountants, but public finance accountants and management accountants.

While these different kinds of accountants are unlikely to hold conflicting views about all issues all of the time, nonetheless, the identification of a common cause upon which they can all rally behind with equal enthusiasm, is likely to be more difficult for a larger, organisation to achieve, than it is for a smaller, more homogenous organisation. The contention that the bigger the institute is, the more effective at lobbying it will be, is unconvincing.

For its part, ICAS sees considerable benefit in an exclusive and unremitting focus on chartered accountants and in particularly CAs whom we consider to r epresent the most able tier of the profession.

Further, contrary to ICAEW?s apparent aversion to competition, ICAS embraces both competition and partnership. We do not regard them as mutually exclusive and believe firmly in the benefits of competition, both for our members and more importantly for the markets we serve. Simultaneously, where there is scope for co-operation and we think there is, ICAS is eager to co-operate.

Since structures already exist to encourage co-operation, ICAS sees no convincing argument for consolidation of the profession. Rather, ICAS considers the Consultative Committee of Accounting Bodies (CCAB) as the appropriate vehicle for co-operation. With the proper level of support from the profession?s representative bodies, CCAB?s effectiveness can only be enhanced.

There are far more important issues for the profession?s representative bodies to contend with than consolidation, which is why ICAS has no current intention to merge.

Rather, ICAS will continue to focus its efforts solely on chartered accountants, the premium positioning of CAs within the profession, the urgent need to protect the term ?accountant? so that only the qualified may hold themselves out as an accountant, and an unparalleled excellence of education provision and a personalised service to its members.

ICAS is committed, above all else, to the training of individuals of the highest calibre and ability, to equip them with a skillset that enables them to take on the most significant, important, comprehensive and challenging roles both within the profession and business.

Posted at June 30, 2005
Filed Under BSG [CPA TRENDLINES] |

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