PracticeConsultingRegulation – Lay majorities in new regime

Regulation - Lay majorities in new regime

The government has stuck to its guns and imposed a non-accountant majority on the profession’s regulatory bodies in a move that some fear could discourage companies from listing in the UK.

Last week’s decision by trade minister Ian McCartney divided the profession.

Deloitte & Touche technical audit partner Martyn Jones said: ‘There is a need to ensure there is a level playing field. Ultimately, audit is seen by businesses as a form of red tape. If the regime becomes overloaded, people could decide to use corporate vehicles in other countries.’

But other Big Five partners disagreed, arguing that non-accountant members would be drawn from business, and would not therefore want to impose further burdens on industry.

Chris Swinson, English ICA president, welcomed the government’s decision but expressed disappointment at the non-accountant majority.

He said the risk of Britain becoming an unattractive base was ‘remote’, but added: ‘The DTI would be unhappy with the prospect of companies being forced outside the UK.’

Analysis, p6; Leader p16.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer