We’re sharing the information below following ICAEW Council’s discussion in December on the proposed merger between ICAEW and CIPFA, to provide an update on engagement to date and the current status of the work.
Members may continue to share views. The feedback questions below will remain open until the end of January and will help inform ongoing work as the proposal develops.
December 2025 update
As part of our engagement on the proposed merger with CIPFA, feedback was invited from members and representative groups across ICAEW’s governance and advisory structures between October and December 2025. We are grateful to everyone who took the time to share their views.
The feedback received was analysed, summarised and considered by ICAEW Council at its meeting on 9 December.
Having considered this feedback, Council discussed the proposal in detail and agreed to support progressing the work into the next phase, subject to a number of conditions being met. These include further due diligence, the necessary regulatory approvals, and approval by CIPFA members.
This decision marks an important milestone as the project enters its next phase. It is therefore important to be clear about what this decision means.
What does this mean?
- There are no changes to ICAEW’s Royal Charter, member rights, qualification, standards or regulatory responsibilities.
- The ACA remains entirely separate and unchanged and there is no equivalence with the CPFA qualification.
- ICAEW and CIPFA will remain separate legal entities, each with their own governance and regulatory frameworks.
The next phase of work will focus on completing further due diligence and preparing the necessary regulatory and governance steps required to enable completion in 2026, subject to the conditions set out.
Below is a summary of the key themes raised and how they are being reflected in the proposals as the work progresses.
Key themes from member feedback
How this feedback has been used
Feedback received through the engagement process was analysed and grouped into key themes. The underlying insights were shared with ICAEW Council ahead of, and as part of, Council’s discussion on 9 December, where they informed consideration of the proposal.
The webpage has also been updated with additional FAQs to respond directly to the raised during the engagement process, ensuring transparency on what was heard and how it is being addressed.
The vision
ICAEW and CIPFA share a commitment to building a stronger, more connected profession –one that is equipped to respond to changing expectations from members, firms, and the public at large. This vision is consistent with ICAEW’s Direction 2030 strategy, which is anchored in maintaining the relevance, enhancing the reputation, and increasing the resilience of the profession. It also reflects CIPFA’s vision to strengthen the profession’s reach, resilience and impact in public financial management. Closer integration enhances the ability of both bodies to lead the profession and support their members in delivering long-term public interest outcomes.
To enable that shared ambition, the proposal would see ICAEW take a key role in the governance of CIPFA, formalising the close working relationship, that has been developed between the two Institutes over several years. This would create a clearer and more joined-up basis for collaboration – one that enables earlier alignment on priorities and better coordination at a strategic level.
Professional bodies are facing increasing demands to modernise, to operate at scale, and to demonstrate clear public value. This proposal positions ICAEW to lead that evolution, demonstrating how consolidation across the profession can work effectively. A more connected profession reinforces confidence in the UK finance sector - giving government, business and the public greater assurance in how finances are managed and decisions made. Combining ICAEW’s global reach and CIPFA’s public-sector relationships will create a capacity-building capability that is second to none - enhancing the profession’s ability to share its expertise and support stronger financial management around the world.
Over time, the scale and shared infrastructure this creates will help both Institutes operate more efficiently - spreading investment in technology, education and regulatory capacity across a larger combined base. And, in an environment where further consolidation is likely, it positions ICAEW and CIPFA as the natural place for that evolution.
Rationale
This proposal reflects ICAEW’s intent to continue to lead the profession in a way that is strategic, sustainable and in the public interest. It ensures we shape the terms of consolidation across the professional accountancy body sector.
The proposal aims to:
- Create a stronger, more efficient group, with the scale and capability to better support the profession’s future and its contribution to the wider economy.
- Combine complementary strengths, including CIPFA’s public sector expertise and networks with ICAEW’s global brand, scale, and infrastructure.
- Strengthen collective influence with government, regulators, and international bodies.
- Enhance impact and public trust through a unified voice across public and private sectors.
Strategically, this will:
- Position ICAEW at the forefront of consolidation – demonstrating that this can be delivered responsibly on our terms, and in a way that protects standards while strengthening the profession as a whole.
- Extend influence through reach, building capacity internationally and strengthening local professional networks.
- Broaden the base over which investment and operational costs are shared, improving value for members and allowing both Institutes to sustain and enhance their services in a cost-effective way.
- Build on existing collaboration by expanding joint work in areas where partnership is already working well.
How this aligns with ICAEW’s Direction 2030 strategy:
This model strengthens ICAEW’s ability to deliver against the five strategic initiatives in Direction 2030:
Next steps
ICAEW and CIPFA will continue engagement with government departments and regulators, including the Privy Council.
CIPFA submitted draft proposals to the Privy Council as part of an informal application in November, with an initial decision expected in early 2026.
Early in the new year, CIPFA will launch its member engagement campaign. This will explain the rationale for the proposals in more detail and provide opportunities for members to scrutinise the proposals, submit comments and ask questions.
ICAEW will keep its member webpage open until the end of January to continue gathering feedback following Council’s decision to progress to the next phase.
ICAEW will return to Council in Q1 2026 to update on progress and bring forward further detail as the work develops.
CIPFA members will then vote on the necessary changes to CIPFA’s constitution to allow the merger to happen, expected in late spring or early summer. The vote will be open for 21 days and will require a two-thirds majority to pass. A special general meeting will be held to announce the result.
If the proposals are approved, CIPFA would then proceed with a further formal application for approval to the Privy Council.
Subject to all required approvals, ICAEW would become a “Special Member” of CIPFA and enter into framework agreements with CIPFA, reflecting and formalising the close working relationship developed between the two institutes over recent years.
The intent is for the two organisations’ combined scale and shared infrastructure to support more efficient operation and sustained investment in technology, education and regulatory capacity.
Frequently asked questions
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What is being proposed?
ICAEW would become a special member of CIPFA with the right to appoint a majority of CIPFA’s Board, while both organisations remain separate legal entities under their own Royal Charters. There is no merger of qualifications, no transfer of assets or liabilities, and no change to ICAEW’s standards, regulation or member rights.
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Why are ICAEW and CIPFA doing this now?
- The profession is changing at a pace not seen in decades.
- Technology, regulation, education and public-interest expectations are all increasing.
- Professional bodies increasingly need scale - to invest in the infrastructure, capability and regulatory excellence the sector expects of us.
- And we are already seeing consolidation across the profession. We can help shape that responsibly now - or be forced to react to it later.
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Will the ACA and CPFA qualifications be merged?
No. The ACA and CPFA remain entirely separate qualifications.
There is no merger of qualifications, no equivalence and no change to the standards, training, assessment, or regulatory frameworks that sit behind either qualification. Each qualification continues under its own Royal Charter. With the proposal seeing ICAEW taking a lead role in the governance of CIPFA.
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Why do CIPFA members vote but ICAEW members do not?
The proposal involves changes being made to CIPFA’s Supplemental Charter and Bye-Laws. In order for these necessary constitutional changes to take place, a vote of CIPFA’s members is required.
The proposal does not involve any changes to ICAEW’s constitution. Therefore a vote from ICAEW’s members on any proposed constitutional changes is not taking place.
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How does this benefit ICAEW members?
It creates new opportunities to work across public and private sectors, strengthens ICAEW’s voice with government and regulators, and enables shared investment in education, skills and technology for future generations.
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Will ICAEW be subsidising CIPFA?
No. CIPFA already pays ICAEW for disciplinary services and rent under formal agreements, and each organisation retains ownership of its own assets. Where new and additional opportunities arise, they will delivered and/or procured at cost.
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Will my membership, rights or designations change?
No. ICAEW members remain members of ICAEW. Qualifications and designations - ACA/FCA for ICAEW and CPFA for CIPFA - remain distinct.
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Does this lower ICAEW’s professional standards?
No. ICAEW already delivers CIPFA’s disciplinary and regulatory functions, ensuring consistent, high standards across both Institutes. The proposal strengthens public trust and accountability.
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What does this mean for the future of the profession?
It creates a stronger, more connected profession - one that reflects the way business and finance operate today. By aligning ICAEW’s breadth across business and practice with CIPFA’s expertise in government and public finance, we can lead the next phase of the profession’s evolution responsibly and on our own terms.
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How will members see the benefits in practice?
In doing this, we strengthen the profession by bringing together complementary capabilities, support the delivery of Direction 2030 by positioning ICAEW to lead responsible consolidation and take a measured, low-risk approach that protects what matters most to members.
Over time, members will see closer collaboration across learning, professional development, events and thought leadership. Shared investment in technology and education will enhance member value and help ensure both Institutes stay at the forefront of skills development for the next generation.
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How will this strengthen ICAEW’s international influence?
By combining ICAEW’s global reach and infrastructure with CIPFA’s public-sector expertise, the partnership enhances our ability to shape standards and policy discussions around the world. It also opens opportunities to collaborate with governments and international institutions on public financial management and capacity-building initiatives.
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What are the risks?
As with any strategic proposal, there are risks. These have been identified, assessed and are being actively managed, and were discussed with ICAEW Council as part of its consideration of the proposal on 9 December.
Risks are kept under review, with appropriate mitigations in place, and will continue to be monitored as the work progresses.
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Is this the first step towards something further with CIPFA?
This is stand-alone action. Any move beyond what is currently proposed would require a separate decision, further due diligence and the appropriate governance and regulatory approvals.
It puts a governance framework in place that allows earlier alignment, clearer oversight and more coordinated working between ICAEW and CIPFA. ICAEW and CIPFA remain separate organisations under the collaborative merger. It does not amalgamate them into one organisation or change ICAEW’s Charter, qualification or member rights.
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What is not included as part of this proposal?
- It does not amalgamate the two organisations
- It does not change ICAEW’s qualification, Byelaws, Charter or member rights.
- It does not make CIPFA members ICAEW members.
- It does not create any new route into ICAEW membership.
- It does not transfer assets, staff or liabilities between the bodies.
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Why are ICAEW and CIPFA considering this now?
The profession is consolidating. Costs, technology and regulatory complexity are rising. Public-finance capability increasingly shapes market conditions, regulation and investment. This step positions ICAEW to lead that shift, not respond to it on someone else’s terms.
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Does this affect audit rights?
No. Audit signing rights remain governed by the FRC and ICAEW’s Audit Qualification. Neither CPFA nor dual membership gives audit rights.