Highlights from March 2025’s ICAEW Council meeting

David Franklin, ICAEW’s Chief Financial Officer, presented the 2024 Annual Report and Financial Statements. David highlighted that 2024 was overall a good year both financially and operationally, despite reductions in membership and student growth.

The net result reflected investments in strategic projects like establishing the Centre for Public Interest Audit (CPIA) and development of the next-gen ACA. The funding arrangements for FRC Conduct Committee cases continue to impact year-on-year results, but overall, the results appeared strong and have since been published.

David also reconfirmed the robust review process undertaken to draft the financial statements.

Council approved the new ICAEW strategy, following  a thorough and inclusive feedback process. Alan Vallance, ICAEW’s Chief Executive explained that feedback was received from Council, committee members, Board and staff, and meticulously captured, reviewed, and distilled into actionable points. Topics of most interest included the purpose statement and implementation details, which will be addressed in our upcoming detailed planning sessions.

Alan explained that the strategy document incorporated broad themes from the member survey, staff survey, and international review, and assurance of engagement was provided by involving the Board and Council throughout the process, closing the loop on initial feedback and ensuring comprehensive coverage. The strategy will officially launch on 15th May.

Malcolm Bacchus, ICAEW President, reported on his recent visits to Cyprus and India. He spoke at the World Financial Accounting Conference (WFAC), to an audience of several thousand, on integrating sustainability into financial statements.

Malcolm also met with the Head of the Indian Civil Service and engaged in outreach with firms, where he received comments which align well with our new strategy.

Katherine Thew from Truth Consulting presented key findings from the member survey, which directly engaged a cross-section of members, employers and business bodies around the world.

Key findings included:

• a deep sense of respect and trust for ICAEW, but also experiencing the institute from a point of authority, which can create barriers to interaction and perceived value. The institute should reconsider how it communicates and collaborates with members, moving towards a more equitable relationship rather than a hierarchical one.
• an opportunity to create a new type of relationship with members, one that is more emotional and less transactional, fostering true advocates and ambassadors for ICAEW and its mission.
• members outside of practice displaying lower levels of satisfaction and perceiving ICAEW as less essential for their roles, seeking greater relevance and specificity in communications, resources, and training tailored to their needs.
• significant appetite for specialised training post-ACA and certification in emerging areas, with members keen to learn from each other and share experiences.
• a desire to address negative perceptions in the profession and assert the value of the qualification and chartered status.
• international members seeking greater presence and investment in profile-building to make their qualifications more marketable, with ACCA perceived as more flexible, adaptable, and recognised globally.

ICAEW Board reports to every Council meeting, with a report from the Board Chair Peter Wyman, and updates from Board members. 

Richard Nunn, ICAEW Board Member, shared reflections on the Board's work and the importance of engagement with the broader community. He emphasised the hard work and careful process involved in implementing the strategy, and noted the positive engagement with senior figures and the confidence in the organisation's direction.

Mark Freebairn, ICAEW Board Member, shared insights from his experience as a head-hunter on the relative attraction of the ACA over the ACCA for senior appointments, emphasising the high regard for the ACA in the UK market and the preference for ACA qualifications in finance functions across various sectors.

Peter also responded to a question about board effectiveness reviews, explaining that the Board chose not to have a review last autumn since the new composition was only established in June 2024. There are plans to conduct an external review later in the year.

Derek Blair, ICAEW Deputy President, and Bindi Palmer, ICAEW Council Member presented  the AMCP Working Group’s final proposed procedure, which Council approved.

Members and staff can raise a concern that an Active Member has not met the ethical and business values outlined in ICAEW’s Active Member Code of Conduct via the AMCP. The procedure sets out how such concerns may be raised, dealt with, and resolved and will be published on ICAEW’s website.

The IRB Annual Report focuses on explaining self-regulation, debunking myths and emphasising the importance of protecting the public interest. The report includes articles to help stakeholders understand self-regulation and its benefits.

Parjinder Basra, Chair of the IRB, highlighted positive developments including governance changes, the appointment of new members with valuable skills and experience, and the revision of the IRB's Terms of Reference and strategy to dovetail with those of the ICAEW Board. Having a balanced mix of lay and non-lay members on the IRB will strengthen trust in the profession.

Duncan Wiggetts, Chief Officer, Professional Standards, provided an overview of the operational delivery, highlighting the increasing reach of communication strategies, positive reviews of QAD work and the success of ICAEW’s educational films.

David Matthews, Chair of the GAC, reported on two formal matters to consider: a co-option and a paper regarding the application of the Single Transferable Vote (STV) methodology used for the election of the Vice President.

David outlined future business for the GAC, including reviewing the committee review process, co-options based on the updated composition of Council, honorary memberships, and the effectiveness of governance, including the Board review. 

Gareth Brett, Interim Director of Ethics, explained that as a member of IFAC, ICAEW is obligated to keep its code aligned with that of the IESBA, which has been very active in accelerating new standards. In order to ensure more timely alignment, ICAEW plans to update our code more regularly in future.

ICAEW’s Ethics Standards Committee has already approved the changes and the IRB has also reviewed the updates.

Gareth mentioned a new disciplinary framework regarding professional conduct and standards, and outlined general application changes, including the introduction of the "inquiring mind" concept, technological-related revisions, and that the new definition for professional behaviour has been incorporated into the code.

Council approved the adoption of the 2025 ICAEW Code of Ethics.

Council discussed the trend of private equity (PE) firms investing in accounting and auditing firms – examining in particular, the implications for ICAEW, the public interest, the profession's brand, and the role of accountants as trusted advisors.

Nicholas Page, Council Member, who introduced the session, explained that PE firms typically hold investments for about five to seven years, and that this cycle of investment and sale will impact the structure and oversight of audit firms. PE investors are active and interventionist, driving growth and reshaping businesses according to their investment plans. This can lead to consolidation within the industry, with smaller firms being absorbed into larger organisations.

 Insights and feedback from these breakout discussions will be shared with ICAEW Board and Leadership Team to support operational and any regulatory planning and decision making.