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Originally dedicated to fighting the proposed merger of the ICAEW with CIMA and CIPFA, this site now provides news about the ICAEW

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Thursday, February 24, 2005

CIMA Pulls Out

Now we know why CIMA have not been answering my enquiries about the delay in their council's vote on the proposed merger.

They have pulled out.

Accountancy Age reports that ICAEW and CIPFA may merge by themselves, leaving CIMA to join at a later date.

The ICAEW and CIPFA still seem happy to fudge this ill conceived proposal, by now trying to push forward with a two tier merge.

Frankly this is now verging on the farcical.

Let us be done with this nonsense, and just go ahead with a one tier merger; ie don't merge!

The pull out of CIMA was obvious in December, when they voted against the proposal.

Yet the ICAEW chose to hold their own vote, after CIMA's rejection, and press on regardless.

My questions to the ICAEW are as follows:

1 Why did you hold a vote in December, when you knew that CIMA had rejected the proposal?

2 How much of our money have you spent, to date, on trying to persuade us to support this unwanted and unloved proposal?

3 Why are you trying to continue to push this unwanted proposal forward, when it is obvious that it is holed below the water line?

4 Who will be resigning in the ICAEW over this shambles?

10 comments:

  1. The full text of the press release can be found on www.icaew.co.uk

    President Paul Druckman promised me that he would not put the 'consolidation' to a vote without taking soundings from members about their voting intentions.

    The only soundings taken have been on the ICAEW strategy and the questions asked have not indicated the strength of opposition to any merger.

    The two independent surveys that have been taken show that around two thirds of members intend to vote against any proposed merger

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  2. This comment has been removed by a blog administrator.

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  3. Dear Ken,

    I am an ACA, and I 100% agree with what you have said and I fully support you.

    The ICAEW is so desperate to merge with anyone at any cost. They have been trying to make themselves extinct since the last few years.

    When I was a trainee they tried to merge with the ICAS, but the Scots voted no. Then in the early 1990s they tried to merge with CIPFA. Then in 1995 they tried to merge with CIMA.

    When the last CIMA merger was rejected, it was suggested that ICAEW will not even think about merging with anyone until at least the next 25 years, but here we go again.

    Despite CIMA having now backed out of this three way merger, I am surprised to see that ICAEW is still intent on merging with CIPFA. What will they gain? Will the ICAEW have a stronger voice? NO. Just consider how many members CIPFA has - will the addition of those few CIPFA members make the ICAEW bigger and more vociferous? I doubt very much.

    ICAEW just wants to achieve growth via acquisition rather than organically. It appears that the ICAEW objective is to compete with ACCA in terms of growth at all costs – even if that means devaluing the quality of its ACA qualification.

    I will do anything in my power to stop the merger, but I am a very small fish in a large ocean, but I can support you fully.

    Am I right in saying that the previous ICAEW – CIPFA merger failed? If so, then do you have statistics about it? I mean who voted against, etc.

    Now that CIMA is out of the equation, do you think an ICAEW – CIPFA merger will go ahead? Do you think that ICAEW members will support the proposal?

    With CIMA out, how do you think the ICAEW will go about convincing members to support them? What rationale would they now have for the merger?

    It is time that ICAEW stop wasting members’ resources on future merger proposals such as this nonsense about merging with CIPFA.

    I would also like to contact Jeff Wooller and his Ginger Group so that I can have a larger voice in stopping this needless ICAEW – CIPFA merger. Do you have Jeff Wooller’s contact details?

    Kind regards,

    Kamran

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  4. Kamran

    I fully agree with you.

    Many thanks for your message of support.

    I rememebr the previous merger disasters too.

    I will ask Jeff to contact you, if you can email me your email address.

    Ken

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  5. The CIMA brand should not subsidise The ICAEW for its pension time bomb and revenue deficits.This merger is ill fated.

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  6. If judgment is an essential quality of successful leadership; then surely resignation should be the result of abject failure?

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  7. If many members from each of the bodies have a modicum of good judgment and a just a smattering of ability in statistics; then surely even though Messrs Anstee, Tilley and their Presidents etc lack such limited talents, they would at least have known some relevant history.
    There will of course be many members in favour of a merger but what do they say about the amount of effort, time and money spent on this hopeless cause?

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  8. Fool me once; shame on you.
    Fool me twice; shame on me.
    Old Chinese proverb?
    To Messrs Anstee etc

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  9. Merger failure of accounting bodies is the "norm". The merger failures of accounting bodies in UK is well documented. The failure of the recent merger of Irish bodies is no co-incident. This week, the CICA and CMA halted their merger discussion.

    Can we stop the insanity? Resources are wasted for acts of stupidity when it is clear that members will reject the merger vote. Why beat a dead horse? Let it go..better still lets get rid of the leaders.

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  10. Fully agreed, the following needs to happen:

    1 It is time for those that set us on this path to nowhere to go

    2 Democracy needs to be emabraced by the ICAEW; ie in future the president should be elected by the membership, not appointed by the council

    3 The size and function of the ICAEW council also needs to be looked into

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