ICA regulation under attack

The English ICA’s regulatory procedures are facing renewed criticism in a letter to the Securities and Investments Board from a disgruntled member.

Retired chartered accountant Wilfred Olsen is planning to write to the SIB as well as institute president Keith Woodley about his dissatisfaction with the way a complaint was handled.

‘I don’t think the institute has a proper self-regulatory procedure except for small practitioners,’ Olsen said. ‘It will never criticise one of the Big Six.’

Olsen complained to the institute about the 1994 accounts of the Dunedin income growth investment trust, audited by KPMG, which he alleged failed to give a ‘fair’ view. Olsen said the trust’s accounts failed to show clearly that only half the management expenses had been charged to the revenue account, the other half being charged directly to capital. Olsen said the effect was that the management charge appeared to have been cut, when it had actually increased.

When the institute’s investigation committee decided there was no prima facie case to answer, Olsen asked for the case to be passed to Anthony Surtees, the institute’s reviewer of complaints, who also threw the case out.

Matthew Ives, the institute’s director of professional conduct, commented: ‘I don’t think anyone who has looked at (the issue) thinks there is a case, apart from Mr. Olsen.’ KPMG declined to comment.