Consolidation of the Accountancy Profession

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Consolidation of the Accountancy Profession
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CIPFA Development Strategy

• Launched in March 2001
• Developing the Institute across a broad range of
  fronts
• Strategy based on 7 hallmarks
• Publicly addressing all issues bar one

rationalisation of the profession
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Position on Rationalisation

• Inevitable, though timing uncertain
• Structure of UK profession untenable in the long
  term in the context of a more global profession
• Some combinations better than others, though
  almost any movement likely to be in the public
  interest
• CIPFA likely to be an important ingredient in any
  strategic proposal but essential to negotiate
  from a position of strength

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A Position of Strength

• Public Servant of the Year Awards
• Mandatory CPD
• New Governance Arrangements
• Prudential Code
• International Strategy
• Strategic Grant Agreement with DfID
• Higher profile in IFAC and FEE
• Spectrum
• Monthly e-newsletter
• Multi-level membership
• New qualifications
• New PAQ

• Full membership survey
• National Student Forum
• New Press Office
• Local Income Tax
• Public Reporting and Accountability Awards
• Financial Management Model
• Leaders in Finance
• Independent Commission on Good Governance
• Strategic partnership with AC and IDeA

and an increasingly healthy financial position
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CCAB Bodies income per member as at 31.12.02
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Challenges

• Growth by competitor bodies
• Specialist niche player
• Internationalisation of standard-setting global
  profession with global standards
• Constraints on our investment
• Responding to the rise of regulation and oversight

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Vision

• Consolidation of CIPFA, CIMA and ICAEW
• Would span the economy practice, business,
  public services
• Would embrace the modern profession
• Organised around specialisms/faculties

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Membership Numbers Worldwide
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Registered Student Numbers Worldwide
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Profile of a Combined CIPFA/CIMA/ICAEW

• Worldwide Members 197,000 (61)
• UK Members 168,000 (68)
• Worldwide Students 90,000 (30)
• UK Students 66,000 (49)
• (cf AICPA 330,000 members)

Proportion of CCAB membership
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Profile of a Combined CIPFA/CIMA/ICAEW
(Worldwide Members)

• Public Practice 35,000 (51)
• Industry and Commerce 108,000 (62)
• Public Sector 15,000 (62)
• Retired 24,000 (76)
• Other 15,000 (74)

Proportion of CCAB membership
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What would it mean for Individual Members?

• Enhanced status
• Improved support services
• Influence and representation at the highest
  levels
• A more portable qualification
• Networking across sectors

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Benefits

• Powerful and influential player
• Natural voice of the profession
• Economies of scale
• Gold standard qualifications
• Strong brand recognition
• Clear sense to the public

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Would a Merged Institute Retain its Interest in
the Public Services?

• 30-40 of the global economy
• 15000 demanding members
• High levels of volunteer participation
• Significant growth opportunities
• Counter-cyclical economic cycle
• Significant commercial revenues

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Possible Process
July-Sept

• Three Institute Councils agree in principle

Negotiation of detailed terms. Discussion and
debate amongst the membership
Sept-Nov
December
Review and approval by Councils
Legals, detailed drafting of resolutions, due
diligence, Privy Council discussions
Jan-Feb
Spring 2005
Special general meetings