ICAEW and CIPFA have today reached a major milestone in their growing partnership, signing a Heads of Terms agreement that outlines the strategic direction for a potential merger between the two chartered accountancy bodies.

Alan Vallance, ICAEW Chief Executive, says: “This marks the next step in a long-standing and ever-deepening relationship between ICAEW and CIPFA. Since joining ICAEW, I’ve been focused on strengthening that relationship and I’m pleased we’ve now reached this agreement.

“I am certain that it will bring with it greater opportunities to respond to the evolving needs of our members, the profession, business and society, and to strengthen the impact and trust of the accountancy profession in the UK and around the world.”

The agreement, signed just under two years after the organisations’ joint declaration in September 2023, signals a shared ambition to strengthen the profession, enhance member services and amplify the public interest impact of accountancy across the public and private sectors.

What’s in the agreement?

Under the proposals outlined in the Heads of Terms, CIPFA would formally join the ICAEW group but retain its distinct brand, legal identity, charitable status and operational independence.

Today’s agreement initiates a process to explore and develop a formal proposal, which if implemented would be subject to the respective governance and approval processes of each organisation, a vote of CIPFA members and approval of regulators.

CIPFA Chief Executive Owen Mapley says: “We have made real strides in working more closely over the past two years, driven by shared values and a common purpose. The signing of the Heads of Terms marks the next step in our strategic journey together. We believe this closer alignment will strengthen our collective voice, improve member services and enhance our resilience and relevance in the UK and internationally.”

Working closer to offer more for members

The move builds on years of deepening collaboration, including the introduction of fast-track dual membership routes, co-location of CIPFA’s London-based staff at ICAEW’s Moorgate headquarters and the integration of CIPFA’s disciplinary scheme under ICAEW’s Professional Standards Department.

Vallance and Mapley both become dual members of ICAEW and CIPFA to underscore their strategic alignment. “In the year since we signed our joint declaration, it’s clear to see how we are working together more closely than ever before, delivering benefits for the members of both institutes,” says Vallance.

Mapley also praised the relocation of CIPFA staff to Chartered Accountants’ Hall as a catalyst for day-to-day collaboration and innovation: “CIPFA’s co-location with ICAEW colleagues has already increased the collaboration, innovation and relationships between many of our teams. This agreement builds on that momentum.”

Other key developments over the past year include joint statements on the local audit backlog and international collaboration through donor-funded projects aimed at strengthening public financial management.