Super-regulator is on the way

The final pieces of the regulation jigsaw fell into place this week when the six leading accountancy institutes united behind a single set of proposals to establish a pan-professional regulatory regime.

Chris Swinson, English ICA vice-president and the architect of the new regime, told Accountancy Age that the final stumbling block – deciding the future of the Auditing Practices Board – had been settled.

‘We have overcome all obstacles now,’ said Swinson. ‘We are now doing some final redrafting before we publish a consultation document in the middle of next month.’

The breakthrough follows a meeting of the six leading accountancy bodies on Monday to thrash out their differences.

Earlier this month CIMA broke ranks with the other bodies by publicly demanding that the APB should join the Accounting Standards Board and be moved under the aegis of the Financial Reporting Council.

But, despite its initial objections, CIMA has now decided to accept the majority view that the APB should become part of the Review Board, but be controlled by an independent board of trustees.

CIMA’s acquiescence was welcomed by Swinson. He marked the thawing of relations with the management accountants by saying that they had been ‘extremely constructive and helpful’ during the meeting on Monday. And he added: ‘During the past few months, everybody around the table has in some way had to change their positions. All of us had to give in some way.’

Andrew Colquhoun, English ICA chief executive, echoed Swinson’s comments and said: ‘The majority of the working party are saying that there’s a natural relationship between the Review Board and the APB and that it should be developed along these lines.’

He added: ‘CIMA’s preference for the APB to move under the FRC has been noted in the discussion document, but they are not now seeking further changes to the document, nor will they be opposing the plans.’

The Department of Trade and Industry, which has also been privately lobbying for the APB to be passed on to the FRC, has been appeased for the moment, according to Colquhoun.

‘The DTI, like the profession itself will have to wait to see the results of the consultation,’ he said.

‘If there’s a strong body of opinion out there that is unhappy with the plans for the APB or feels that the document is fundamentally flawed, then there will have to be more changes.’