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.
“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.