25 October - Over 60,000 members vote but integration stalls on the narrowest of margins

The proposed integration of the Institute of Chartered Accountants in England & Wales (ICAEW) and the Chartered Institute of Public Finance and Accountancy (CIPFA) has today (Tuesday 25 October) failed by the narrowest of margins, in a vote which saw a record turnout for recent years.

Results announced today showed that CIPFA’s membership voted overwhelmingly for integration with 86.7% of those members who voted in favour.With 56,326 members of the ICAEW taking part in the process and 65.7% voting in favour of integration, the result was just 0.96%, or 540 votes, short of the two-thirds majority required for the proposal to be approved. A successful vote would have created an influential new professional body to represent accountants across all sectors of the economy.

The detailed results are as follows:

Turnout

Votes in favour

Votes against

Required Support

CIPFA

5,636 (42%)

4,885 (86.7%)

751 (13.3%)

66²/₃%

ICAEW

56,326 (44.2%)

37,004 (65.7%)

19,322 (34.3%)

66²/₃%

*(Percentages rounded to one decimal place.)

Announcing the results of the ballots at a special general meeting at The Guildhall in London today, CIPFA President Diane Colley said:

“Clearly it is very frustrating that after all the hard work, we should fall short by such a narrow margin.

Nevertheless this is not the end of the world. CIPFA is in excellent health – that’s why we’ve been able to play such a leading role in these important discussions about the profession’s future. And today’s results are not without their positive side. In many ways they represent a very powerful mandate for change – 86.7% and 65.7% support cannot be interpreted in any other way.

The challenge over the next few months will be to work out how we can capitalise on this support and turn it to the advantage of the public and the profession.”

Eric Anstee, Chief Executive of the ICAEW, commented:

“While we are disappointed to have just missed out on the required two-thirds majority, we have seen the largest consultation and interaction on the future direction of the profession in a generation.That in itself is worth recognition.

“We are delighted that such a large number of members have used their vote, proving that they believe that the strategic direction of our professional body is relevant to them and they have valued the opportunity to have their say on integration as an accelerator to this strategy.

“What these figures also suggest is that a significant majority of those voting are supportive of consolidation.I believe we have a mandate for closer cooperation with CIPFA and we will be exploring what this might mean over the coming weeks.

“The task now is to continue to move the Institute forward.The strategic review we undertook last year identified a number of initiatives to reinforce our position as a world-leading professional body. On the back of extensive member consultation on these initiatives we are focused on:

• Aligning with member careers;
• Increasing our international footprint;
• Embracing the full breadth of the economy and
• Maintaining our reputation for excellence.

“Key initiatives over the coming months in support of these goals include a dedicated campaign to distinguish our members from the unqualified; strategic partnership with Oxford University on a new qualification in Financial Strategy linked to a fast-track Oxford MBA; a range of major initiatives on global regulation and corporate governance reform including a major Institute-led symposium in Washington in December; as well as significant investment in our new Learning and Professional Development Directorate.

“As the largest professional accountancy body in Europe I believe we are well placed to build upon our leadership position going forward.”

-ENDS-

Notes to Editors:

1.The Chartered Institute of Public Finance and Accountancy (CIPFA) is one of the leading professional accountancy bodies in the UK and the only one which specialises in the public services. It is responsible for the education and training of professional accountants and for their regulation through the setting and monitoring of professional standards. Uniquely among the professional accountancy bodies in the UK, CIPFA has responsibility for setting accounting standards for a significant part of the economy, namely local government. CIPFA’s members work (often at the most senior level) in the public service bodies, in the national audit agencies and major accountancy firms. They are respected throughout for their high technical and ethical standards and professional integrity. CIPFA also provides a range of high quality advisory, information and training and consultancy services to public service organisations. As such, CIPFA is the leading independent commentator on managing and accounting for public money.

2.The Institute of Chartered Accountants in England & Wales is the largest professional accountancy body in Europe, with over 127,000 members.Three thousand new members qualify each year.The prestigious qualifications offered by the Institute are recognised around the world and allow members to call themselves Chartered Accountants and to use the designatory letters ACA or FCA. The Institute operates under a Royal Charter, working in the public interest. Its primary objectives are to educate and train chartered accountants, to maintain high standards for professional conduct among members, to provide services to its members and students, and to advance the theory and practice of accountancy.