The proposed merger between CIPFA and ICAEW will not be voted on by both sets of members, to the surprise of some.
The ICAEW has said the proposal does not involve any changes to its constitution, so a members’ vote is not needed.
However, changes will be made to CIPFA’s Supplemental Charter and Bye-Laws so CIPFA members will be required to vote for these changes. This vote is expected in late spring or early summer. The vote will be open for 21 days and requires a two-thirds majority to pass.
A special general meeting will be held to announce the result.
In mid-December, ICAEW Council agreed to progress the merger with CIPFA, subject to several conditions being met.
These include further due diligence, the necessary regulatory approvals, and approval by CIPFA members.
The institute also stressed the ACA qualification remains entirely separate and unchanged, and there is no equivalence with the CPFA qualification.
However, under the proposals ICAEW becomes a special member of CIPFA, with rights to appoint the majority of CIPFA’s board. ICAEW believes this avoids the risks and complexity of a full acquisition.
The institute reiterated that ICAEW and CIPFA will remain separate legal entities, with their own governance frameworks.
