Institutes - CIMA caves in on regulation
A last minute U-turn by CIMA seems to have saved self-regulation of the profession after the management accountants’ body dropped its objections to the Swinson plan for a new professional watchdog.
The institute caved in to demands it should fall in line after ministers indicated the plan would stand a good chance of success if all the UK accountancy bodies signed up to all its provisions.
Until now CIMA refused to agree its members be covered by the ethics and disciplinary units that report to the public interest oversight review board, proposed by Swinson.
A majority of CIMA’s council said the units were primarily concerned with the activities of auditors and the costs should be borne by auditors.
But a council vote last week reversed the policy after leading members argued it should seek to change the remit of the disputed units from inside the new organisation.
CIMA president Norman Lyle said the council was most concerned with the independence of the joint disciplinary scheme. ‘When we looked at the proposals last July we only saw a framework.
‘Now meat has been put on the bones we feel more comfortable the new JDS will be independent and effective,’ said Lyle, group FD of Jardine Matheson in Hong Kong. He added much of its independence will be based on the make-up of the board and indicated a series of appointments to the board had been suggested that met with CIMA’s approval.