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Irish government debates 'accountant' status

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4th Jul 2014
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The Irish government said in a recent Senate (Seanad) debate that it sees no immediate need to regulate the term 'accountant' in amendments to the Companies Bill 2012. But, it added, it is looking into the issue with Irish accounting bodies. 

The bill will combine 16 pieces of companies legislation and aims to allow greater flexibility to Irish businesses.

It passed committee stage and once its completes its run through Irish Parliament it will be enacted and enforced later this year. The bill is the result of work by the Company Law Review Group (CLRG) set up in 2000. 

In submissions relating to the bill in September 2013, Chartered Accountants Ireland said it wanted regulation of the term 'accountant' as a matter of consumer protection. Earlier this year, it warned that 120 unregulated firms were operating in Ireland.

The instutite's main concern is that unregulated firms may be run by people who have been expelled from professional bodies, or have criminal convictions that the public don't know about. 

It said that at a time when many ordinary people are seeking financial advice, they need assurance their accountant is regulated and operates to high professional requirements. 

"Unfortunately this is not the case at present because despite having a very credible regulator in place with IAASA [Irish Accounting and Auditing Supervisory Authority] the legislation does not cover persons who offer accountancy services to the public but who opt not to join (or join and then leave) any of the nine recognised accountancy bodies," the submission read.

It's not the first time the Irish has looked at regulating the term accountant. In March 2006, the IAASA carried out a public consultation on the issue.

It argued that restricting use of the title to those who are "subject to similar levels of regulation and oversight" was in the public interest.

In the Seanad this week, Irish independent senator Feargal Quinn proposed three amendments to the bill. Two related to regulating the term 'accountant' and the third concerned the cap on the number of partners in a partnership (currently set to 20). 

The Minister for Enterprise, Jobs and Innovation, Sean Sherlock, rejected the first two on the grounds that they would increase red tape for Irish businesses rather than reducing it.

"The accountancy profession is in general adaptable and agile, and is able to respond to new market opportunities and directions. That is to a great extent because it is not tied down by layers of regulation," Sherlock said.  

The government concluded there was no public interest case for requiring legal protection, but said consultation was continuing with Irish accountancy and business bodies.

"It is not as if we are ignoring issues, it is merely the case that for the purposes of this bill we do not support the amendment," Sherlock added.

Senator Quinn said he was "disappointed" the government put regulation on the 'long finger' rather than dealing with the issue before the new companies law was enacted. 

He was advised to bring up his third amendment to strike out the restriction on partner again at report stage. 

The CAI declined to comment on the issue, but said it would provide commentary at a later date.

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