PracticeAccounting FirmsInvestors unmoved by liability plea

Investors unmoved by liability plea

Influential members of the investment community have been left cold by arguments for the introduction of a liability cap, following a meeting with auditors staged by the Department of Trade and Industry.

Link: DTI faces strong opposition to liability cap

The confidential gathering, which formed part of the consultation process on auditor liability, took place last week and saw instrumental figures from the accountancy and investment professions put the cases for and against a cap.

It had been hoped that such a forum would help to convince some investors of the need to include legislation for a cap in the companies bill, currently making its way through parliament, but it seems investors were unmoved by the plight of auditors.

‘The meeting went pretty much as expected,’ said one investor representative at the meeting. ‘There was no meeting of minds on the subject.’

Others felt that the accountancy profession needed to present a unified and convincing argument.

‘They could then begin to look at the increasingly more intensive needs of investors in matters of financial reporting as a commercially positive factor rather than a negative one,’ said another investor at the meeting.

Despite the apparent deadlock, ex-ICAEW president Peter Wyman, who has been lobbying for a cap, is still quietly confident that a repeal of section 310 of the Companies Act will be included in the bill, giving it a ‘better than evens’ chance. He also claimed to have the support of the CBI, the IoD, influential business figures and ‘quite a lot of investors’.

The consultation period closes on 12 March.

Related Articles

Sexual harassment – is accountancy next for #MeToo?

Accounting Firms Sexual harassment – is accountancy next for #MeToo?

1d Karen Baxter, Lewis Silkin
Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin