Representation to the fore but busy on all fronts
Author:
Pat Costello
It has been a busy period for the Institute in terms of implementing the Strategic Review Report, representing our members’ professional interests, launching a new student syllabus for consultation and launching new services for members. We are particularly pleased with the reported progress being made with the Directors Compliance Statement. At the time of writing there are indications that the Company Law Review Group (CLRG) has recommended changes to the statement which is encouraging news for much of Irish business. The CLRG was asked to undertake the review by Government in April, when preparations for its introduction rekindled concerns about the additional costs it could impose on Irish companies. The Institute has been at the forefront in lobbying for change and we are hopeful that Government will accept the recommendations of CLRG. The new proposal continues to require Directors to acknowledge their responsibilities for compliance with relevant obligations. Confirmations will also be required of policies and procedures in place to secure compliance with obligations. There is also a reduced reporting role for the external auditor. Company directors should not take lightly the requirements of this expected compromised position as it will undoubtedly present a challenge for them and will require careful scrutiny.
On a less positive note ICAI recently highlighted the fact that the new Interpretation Actwhich comes into operation on January 1st 2006 may give rise to confusion in the interpretation of Irish law. Irish law has traditionally been interpreted based on the plain meaning of words in the written legislation. The new Act in some circumstances, allows legislation which may be unclear or ambiguous to be interpreted so as to attempt to reflect the intention of the Oireachtas. However determining the intent of the Oireachtas is a difficult and subjective test. Under the new Act we may see poor legislation made unworkable by trying to look behind the original intent of the Oireachtas. ICAI will work with all statutory bodies to address any issues that might arise.
At this stage you are well aware of the failed merger between ICAEW and CIPFA. One of the proposals contained in the merger document was a proposed new name for the merged Institute of ‘The Institute of Chartered Accountants’ and while we decided not to comment publicly during the merger discussions, we did write to ICAEW outlining our concerns and a copy of the letter is published below. Needless to say we will do whatever it takes to protect our brand should the new name continue to be pursued.
We also recently reiterated our call for statutory recognition of the term ‘Accountant’ following publication of the Review Group Report on Auctioneers and Estate Agents which recommends a similar proposal for their profession. There is no statutory bar preventing anybody, whether trained or not, from setting themselves up as an accountant and this is hardly in the consumer interest. If it is appropriate for the public to be protected from unqualified estate agents and auctioneers, surely it follows that they should be protected from accountants who are not regulated and may not have appropriate training. We have already raised this issue with Government and we will continue to pursue it.
Finally, the Institute recently issued a new student education and assessment structure consultation paper in line with the recommendations in the Strategic Review Group Report. The paper forms the basis of a consultation process with key stakeholders and I would encourage everyone concerned to provide your views to the Institute on this important initiative.
I would like to take this opportunity to wish everyone and in particular our impressive number of voluntary supporters a happy Christmas and prosperous and peaceful New Year.
Pat Costello
Chief Executive
Mr Ian Morris FCA
President, Institute of Chartered Accountants in England & Wales
Chartered Accountants Hall
PO Box 433
Moorgate Place
London
EC2 P2BJ
Monday, 17 October 2005
Dear Ian
As you are aware the possibility of an Institute of Chartered Accountants emerging from your proposed integration with CIPFA has become the subject of considerable controversy.
For our part at ICAI we have refused to be drawn into public discussion on this issue.
However, we feel it is important that this reluctance is not construed as indifference on the part of our Institute.
We also share the concerns expressed by other colleagues in the chartered profession. Inevitably any attempt by one Institute to describe itself simply as 'the Institute of Chartered Accountants' will be construed as a reflection on the bodies that retain their national designation. It would also lead to considerable confusion and threaten the unity of purpose to which all chartered bodies should aspire. The issue, we believe, will be particularly problematic for our members in Northern Ireland.
We have refrained from public comment thus far in part not to intrude on the substance of the process you are engaged in - we know well the difficulties involved in integration proposals and partly from a refusal to deal with any issue on the basis of conjecture.
We will though, should the need arise, use every means at our disposal to protect what we perceive to be the interest of our members and our Institute.
Kind Regards
_________________________
John P Greely
President
Institute of Chartered Accountants in Ireland