Accountancy bodies outline merger steps

3 Mar 05
The three accountancy bodies involved in merger discussions have proposed a two-stage integration process following their council meetings in February.

04 March 2005

The three accountancy bodies involved in merger discussions have proposed a two-stage integration process following their council meetings in February.

CIPFA and the Institute of Chartered Accountants in England and Wales (ICAEW) are hoping to put forward a two-way merger proposal to members by the autumn. This is dependent on agreement being reached at their respective council meetings this month.

In tandem, CIPFA and the ICAEW will work closely with the Chartered Institute of Management Accountants (CIMA) with a view to a second-stage, three-way consolidation. If these negotiations are successful, proposals will be put to the memberships of all three bodies by 2006 at the latest.

CIMA president Roland Kaye emphasised that his council was 'keen for its distinctiveness to be reflected' in any combined institute. 'The two-stage process identified will create the space for us to get the terms of this critically important proposal absolutely right for all parties,' he added.

The presidents of CIPFA and the ICAEW, Mike Barnes and Paul Druckman, issued a joint statement in which they said an initial merger of the two bodies would set a 'powerful precedent' for what could be achieved.

'At the same time this approach will create a pathway for CIMA to be part of the phased consolidation process which we will be actively helping facilitate,' they added.

Speaking at last week's CIPFA annual dinner, Barnes said that consolidation was 'absolutely right for 2005'. He stressed that all three institutes 'remain as committed to the concept of consolidation as we were six months ago' when the first joint statement was published.

'There is a real sense that key changes are now within our grasp.'

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