Merger Talks
Author:
Brian Walsh
[Fulltext] Some members were surprised when we announced in September that the Institute was involved in exploratory talks with the Institute of Certified Public Accountants in Ireland (CPA) in relation to a merger of both bodies. They should not have been. There can be no doubt that the accountancy profession in Ireland has reached a watershed. There is far greater competition for the best students who wish to obtain a business qualification, the cost of maintaining services to members is ever increasing but, most significantly of all, Government will now adopt a more hands-on role with the profession through the operations of the proposed statutory Oversight Board. Against that background, it makes eminent sense to have a more unified profession in Ireland than exists at present.
In a perfect world, of course, there would be just one body representing the profession. However, with the exception of the IIPA, whose recognition is subject to Judicial Review, the only accountancy bodies whose governance structure is in Ireland are ourselves and CPA. The other bodies which come under the umbrella of the Consultative Committee of Accountancy Bodies in Ireland (CCAB-I) are London-based, and it would be an unrealistic objective at this time to include them in any merger discussions.
Founded in 1943, CPA is growing at a rate of about 150 new members per annum. It has approximately 1,800 members, 370 of whom are in practice, and there are approximately 1,400 CPA students. The CPA membership profile is similar to ours, with 40% of their members either in practice or working in practice. Of the remaining 60%, 12% work in the public sector.
We work closely with CPA through the Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) and, in the past year, have begun to run joint CPD courses in centres outside Dublin. These have been very successful. We also coordinated our approach, to great effect, in dealing with the Review Group on Auditing.
A merger with CPA would create a strong professional body, capable of dealing with the challenges that lie ahead. The merged body would be better able to represent members' interests to Government, the Revenue, the Companies Office, etc. and, through rationalisation, would be able to provide more cost efficient regulation and services to members. The aim would be to create an Institute with a higher standing and exerting more influence than either of the individual Institutes does at present. It would be the unrivalled choice in the marketplace for those students, with the necessary qualifications, who wish to pursue a career in accountancy. The talks are still at an exploratory stage and both bodies are working together on the development of a model which can be presented to the membership. Proposals will only be put to the membership if a model can be agreed which Council believes is in the best interests of the members and the profession.
These talks were not entered into lightly. As the largest accountancy body in Ireland, Council believes it has a duty to lead, to look forwards rather than backwards, and to take responsibility for the future of the accountancy profession in this country. The membership has always supported Council in this pursuit, as evidenced most forcefully by the massive 91% majority vote in favour of new disciplinary procedures, which included hearings which are open to the public. If, and when, proposals are brought to the members on a merger, they will obviously be outlined in great detail. There will be full consultation and there will be ample time for membership input.
With best wishes for Christmas and the New Year.
Brian Walsh, FCA.
Chief Executive