In this shorter post, simply entitled IPA Takeover Amalgamate IFA – Pt2, I just wanted to share a few further thoughts and concerns that I have. I am also devising a comprehensive set of questions that I would urge EVERY member to ask of the management team BEFORE voting commences in December.
For this acquisition (or takeover) by the Institute Public Accountants (IPA) of Australia of the Institute of Financial Accountants (IFA), a vote of more than 50% agreeing to the takeover needs to ratified by the members of the IFA. In every effort to secure this vote, the management team at Burford House are making best use of their position and are dangling carrots in order to entice a YES vote. For instance:-
Application to Privy Council for Chartered Status of the Institute
This is perhaps the biggest carrot being dangled and will, in all probability, go no where. A simple check of the Privy Council web site will tell you this. Have a look here at the Applying for a Royal Charter page. It is my belief that the IFA will NOT be given the Charter as they do not fulfil the criteria – they fail massively on point c! Also bear in mind the cost, potentially around £250,000, just for the application process and NO guarantee of success. I also believe that this application to Privy Council for Chartered Status of the Institute is the ONLY reason why the IPA want to acquire the IFA.
Independent Examinations of Charity Accounts
Our members are perfectly qualified and experienced to conduct this service yet why is the name of the IFA not mentioned in Charities Act 2011 as an approved body? See for yourself here on the Legislation web site. This came into force in 2011 so why was the IFA management team NOT involved in the consultation of this Act and why did they not get the Institute listed? This should be a GIVEN for the members, not a carrot whereby your YES vote means they will then look into allowing us to do independent examinations of charity accounts.
Reciprocal Membership of the IPA
Out of 9,000 members, how many of those would need a membership of an Austrailian body in order to practice? None – unless they planned on emigrating and setting up “down under”.
Is The Takeover Already A Done Deal?
I seriously had to ask myself is the takeover already a done deal? Simply because, just doing a little Google search on the proposal, I came across an article on the MoneyManagement web site in Australia which was entitled IPA and IFA Merge – this indicates that the deal has already been done and are the IFA simply going through “a process” secure in the knowledge that the vote will be ratified by the members?
You can view my official response to the proposal here.