The Association of Chartered Certified
Accountants (ACCA) and the Chartered Institute of Management
Accountants (CIMA) are in talks with the Institute of Chartered
Accountants of Pakistan (ICAP) after it advised members to avoid
engaging non-ICAP trainees.
ICAP sent a circular in July in which the
institute recommended its member’s firms not to provide training
opportunities to non-ICAP students, in particular trainees of
foreign institutes of chartered accountants or any other accounting
body of similar nature.
As a result the Competition Commission of
Pakistan (CCP) has this week issued a show-cause notice to ICAP
where it states that the institute’s directive is in violation of
competition laws.
The regulator considers that ICAP’s
recommendation restrict and reduce competition in the accountancy
market as it has the potential to prevent individuals to enter the
profession.
A spokesperson for ACCA told The
Accountant the organisation is aware of this development and
it is currently working with ICAP to seek clarification on the
issue.
ACCA Pakistan has been updating students using
social media. Head of ACCA Pakistan Arif Mirza said that every
opportunity to work with ICAP is being explored to find a
solution.
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By GlobalData“We will continue our dialogue with them, and
to remind them that we need to work together to enhance, protect
and progress the best interests of the global accountancy
profession, of Pakistan’s accountancy profession and business
operations here in Pakistan,” Mirza commented.
Similarly CIMA is monitoring the situation
closely.
“We are fully aware of the situation and
remain in regular discussions with ICAP,” a CIMA spokesperson said
refusing to comment any further at this stage.
It is expected ICAP will submit a written
answer to the regulator’s show-cause and appear before the CCP on
the 24 September.
