13 September 2004
Proposals to create a powerful new voice for the accountancy profession were launched today 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
Notes to Editors:
1. CIMA is the only UK body whose sole focus is on the training and qualifying of accountants in business. It represents financial managers and accountants who work in industry, commerce, not-for-profit and public sector organisations. Its key activities are related to Business Strategy, Information Strategy and Finance Strategy. CIMA's focus is to qualify students, support members and employers, and protect the public interest. CIMA represents the voice of over 81,000 students and 62,000 members in 154 countries. CIMA's focus on management functions makes it unique, and it is internationally recognised as offering the financial qualification for business. CIMA works with leading employers in the UK and around the world to train and qualify financial managers. We pride ourselves on the commercial relevance of our syllabus, which is continually enhanced to reflect the latest developments in business. CIMA's members and students work across all business sectors at all levels throughout the world, demonstrating the flexibility of the qualification.
2. The Chartered Institute of Public Finance and Accountancy (CIPFA) is one of the leading professional accountancy bodies in the UK and the only one which specialises in the public services. It is responsible for the education and training of professional accountants and for their regulation through the setting and monitoring of professional standards. Uniquely among the professional accountancy bodies in the UK, CIPFA has responsibility for setting accounting standards for a significant part of the economy, namely local government. CIPFA's members work (often at the most senior level) in the public service bodies, in the national audit agencies and major accountancy firms. They are respected throughout for their high technical and ethical standards and professional integrity. CIPFA also provides a range of high quality advisory, information and training and consultancy services to public service organisations. As such, CIPFA is the leading independent commentator on managing and accounting for public money.
3. The Institute of Chartered Accountants in England & Wales is the largest professional accountancy body in Europe, with over 126,000 members. Three thousand new members qualify each year. The prestigious qualifications offered by the Institute are recognised around the world and allow members to call themselves Chartered Accountants and to use the designatory letters ACA or FCA.
4. The Institute operates under a Royal Charter, working in the public interest. Its primary objectives are to educate and train chartered accountants, to maintain high standards for professional conduct among members, to provide services to its members and students, and to advance the theory and practice of accountancy.
Media Enquiries:
Nadia Manuelli/Lottie Muir, CIMA, 0208 849 2407/0208 849 2254 or lottie.muir@cimaglobal.com
Clare Rice, CIPFA, 0207 543 5712 or clare.rice@cipfa.org
Harry McAdoo, ICAEW, 0207 920 8649 or harry.mcadoo@icaew.co.uk
Photography:
For details of available photography, please contact Caroline Florence, Media Relations Executive, ICAEW, on 0207 920 8564 or caroline.florence@icaew.co.uk
