28 October 2005
CIPFA's planned integration with the Institute of Chartered Accountants in England and Wales failed this week by the narrowest of margins.
Members of both bodies backed the merger motion – CIPFA with 86.7% in favour and the ICAEW with 65.7%. However, a two-thirds majority was required in each institute for the proposal to be approved.
On a high turnout (42% for CIPFA and 44% for the ICAEW), the planned integration fell by less than 1%, or 540 votes. It was a dramatic end to a controversial campaign, which had incurred the wrath of other accountancy bodies.
CIPFA's president, Diane Colley, summed up the mood when she addressed a Special General Meeting in London's Guildhall on October 25. 'How close can you get?' she said. 'It's very frustrating that after all the hard work we've failed by such a narrow margin.'
But she claimed that the result provided both institutes with a clear 'mandate for change'. 'The question, of course, is how do we honour that mandate?'
Steve Freer, CIPFA's chief executive, concurred. He argued that the accountancy profession as a whole and UK Plc would be the 'losers' and not CIPFA or the ICAEW.
'There is clear scope for co-operation between us,' he said. 'Most obviously, we have lots to offer ICAEW members working in the public sector, while they clearly provide services that would benefit CPFAs working in the private sector.
'We'll be looking at these possibilities over the next few weeks, as well as surveying other opportunities.'
Eric Anstee, the ICAEW's chief executive, also agreed that partnership with CIPFA was the way forward.
'What these figures suggest is that a significant majority of those voting are supportive of consolidation.
'I believe we have a mandate for closer co-operation with CIPFA, and we will be exploring what this might mean over the coming weeks.'
PFoct2005
