ICAP Fiasco Rumbles On

It seems that ICAP's decision to ban foreign accountancy students has stirred things up in the UK.

Yesterday I asked:

"Does this ruling apply to ICAEW students?"

By all accounts the ICAEW is also wondering this.

PQ Magazine reports that three UK-based accountancy bodies are seeking clarification from ICAP as to exactly what is going on.

The ACCA is looking for a formal meeting the ICAEW "is seeking clarification from ICAP as to what the implications are for ICAEW students", whilst CIMA said "we are fully aware of the situation and remain in regular discussions with ICAP."

It is unclear what ICAP's response, if any, has been.

It is possible that ICAP have realised that their decision may have been taken in haste, and that they now don't know how to respond.

ICAP Ban Foreign Accountancy Students

In July 2009 I wrote the following:

"A fellow member of the institute wrote to me today, voicing his fears over the dilution of the ICAEW brand wrt less demanding entry requirements for members of the profession who qualified in India and Pakistan.

"I recently discovered that ICAP(Pakistan) members just need to pass ICAEW 4 papers to become ICAEW members. Moreover ICAP members do not need to undergo any training with ICAEW ATO.

In past (until last wk) ICAP members needed to pass ICAEW 4 papers plus undergo 2 yrs training with ICAEW ATO to become ICAEW member, but now ICAP members do not need to undergo any training.

I do not know why ICAEW is giving its membership of other institutes members in this way. If ICAEW does not want other institute's members to undergo any training in ICAEW ATO (which is main strength of ICAEW), then I have to say merger with ACCA is a better option....

ICAEW has given more relaxation to ICAI(India) members."

Whilst the ICAEW may be relatively relaxed about brand dilution, it appears that ICAP are not.

PQ Magazine reports the following:

"Thousands of ACCA students are planning a protest march on the headquarters of the Institute of Chartered Accountants of Pakistan (ICAP), in Islamabad, tomorrow.

The march is in direct response to a letter sent by the ICAP to audit firms allegedly reminding them that hiring students with ‘foreign’ accountancy qualifications breaks Section 22 of the Chartered Accountants ordinance 1961.

PQ magazine has seen the letter behind the storm of protest - ‘Engaging a person as trainee of other bodies’. It specifically says: “refrain from engaging trainees of other accounting bodies, particularly trainees of foreign institutes of Chartered Accountants, or any other accounting body of similar nature.”

Social media sites erupted over the weekend with some students suggesting the letter must be a ‘fake’. Others wondered if ACCA, ICAEW and CIMA students would be deemed as ‘working illegally’ in Pakistan. "

Does this ruling apply to ICAEW students?

Here is a link to the ICAEW's page about ACA training in Pakistan.

You will need to meet one of the criteria to be able to study for the ACA from ICAEW.

• Members of the Institute of Chartered Accountants of Pakistan (ICAP) living in Pakistan who have obtained ICAP membership by complying with its training and examinations requirements can study for the ACA and apply to join ICAEW.
• Members of the Institute of Chartered Accountants of Pakistan (ICAP) living in other countries who have obtained ICAP membership by complying with its training and examinations requirements can study for the ACA and apply to join ICAEW.
• Students, affiliates or members of another internationally recognised professional accountancy body (such as ACCA) living in Pakistan may be able to study for the ACA in Pakistan. 

Saj Ahmed states on LinkedIn:

"I believe that the core issue is that the ICAP is losing ground to the ICAEW in Pakistan. New student members joining the audit firms wish to opt for ICAEW qualification as oppose to ICAP. 

This is because they know that they can do better with the ICAEW than the ICAP overseas. 

 ICAP's student numbers are down and hence such an action has been taken in order to protect their interest."

This appears to have stirred up a hornet's nest.

Izza Changes His Mind

On 29 June I wrote:

"Michael Izza (CEO of the ICAEW) has published a blog post today entitled "Chartered accountants and tax evasion". Oddly though his first sentence deals with tax avoidance, not evasion, specifically the Times campaign against tax avoidance."

It seems that the ICAEW has taken on board what I wrote, because the title of Michael's article has now changed to "Aggressive tax avoidance - my view".

Thanks to Tax Journal for pointing that change out.

Kicking Off On Michael Izza's Blog

I see that it is rather kicking off on Michael Izza's blog about tax avoidance.

Good to see that fellow members are not docile/passive about this issue!

My views on the subject are here: An Opportunity Lost - Michael Izza Gets Stuck On K2