PracticeAccounting FirmsICAS blames fee hike on new law

ICAS blames fee hike on new law

Problems with the recently introduced Human Rights Act and soaring legal fees are behind a decision by the Institute of Chartered Accountants of Scotland to increase the cost of its practising certificate.

Link: Fall in trainees produces higher fees at ICAS

The move, which sees an increase of £120 for a practising certificate, up to £465 from next year, was accompanied by a £40 rise in its annual subscription from £295 to £335 per year. This was blamed on a dramatic drop in the number of students signing up for the qualification training and examinations.

David Brew, chief executive of ICAS, aimed criticism at the Human Rights Act for significantly increasing the company’s legal costs when it came to internal proceedings for disciplining offending members. He said the current procedures were being challenged as incompatible with the Act and that this was increasing the time and cost of proceedings significantly.

‘What was once an internal matter is becoming more like a public court case, where we are compelled to call witnesses and produce evidence, which is very expensive,’ said Brew, adding that the body suffered from not having the same powers as the public courts in these matters and of having to finance the process itself.

Brew also explained the reasoning behind the body’s decision to raise subscription fees in order to break even. ‘There has been a significant reduction in the number of accountancy student entrants,’ said Brew.

He added that the decline had been seen through its training arm over the long term and there was no indication the situation would improve.

Brew attributed this reduction to companies under severe economic pressure reducing the number of accountancy students they are taking on.

ICAS claimed that its members supported the move to increase subscriptions, with only 3% who voted in online and postal poll opposing the proposed changes in fees.

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

2d Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

3d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

2w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

3w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

3w Emma Smith, Managing Editor