However, the institute’s operating loss stayed just within the budgeted £1.5m deficit approved by council. And as a result of a £16.1m profit on the sale of its ABG Professional Information arm, the institute was able to report an overall net profit of £14.9m.
Subscriptions and fees rose by some 5%, partly due to a rise in membership numbers. But the operating profit suffered from a £1.2m loss on equities and from the ‘increasing cost of regulation’.
The institute’s Joint Disciplinary Scheme spent more money than expected for a second year in a row. The JDS handled three new cases this year, instead of the ‘one or two’ for which it had budgeted.
Fortunately the costs could be offset against the £1.2m it received in fines primarily as a result of the Polly Peck and Barings scandals.
The JDS – to which ICAS also contributes – will transfer to the Financial Reporting Council’s new disciplinary board later this year.
But the ICAEW fears it will continue to foot much of the bill. ‘Members are concerned the costs will shift bank into the profession,’ an ICAEW spokesman said.
UK senior partner Phil Verity has been elected for a second term at Mazars
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Top 25 firm HW Fisher & Co has acquired London firm Rhodes & Rhodes
Top Ten firm RSM has appointed Nick Blundell as its head of corporate tax in Birmingham