The Hindu Business Line : Formation of multi-disciplinary accountancy firms

TO keep pace with the increased demand for providing multi-disciplinary services under one roof, the three professional institutes of - Company Secretaries, Chartered Accountants, and Cost & Works Accountants - have decided to approach the Ministry of Company Affairs to bring about necessary changes in their respective Acts.

"The ICSI Council has already given in-principle approval to allow its members in practice to enter into partnerships with other professionals. Besides, the Company Secretaries Act also provides for it. However, the Acts governing the Chartered Accountants and Cost Accountants, do not provide for it and need to be amended," Mr Mahesh Anant Athavale, President, Institute of Company Secretaries of India (ICSI), said.

The professional bodies would request the Government to specify the same in the Bills to amend the three professional Acts, now before the Standing Committee on Finance. In fact, the issue is being discussed in the Coordination Committee comprising the presidents and select council members of each Institutes in order to create a level playing field for all the professional services.

Commenting on the factors that have triggered off this move of partnerships, ICSI sources said, "The concept of mega firms had found mention in the Companies (Amendment) Bill, 2003. Further, the three Institutes - ICSI, ICAI and ICWAI- in 2000, had signed a memorandum of understanding, which not only dealt with professional development but also provided for partnerships among the practising members of the three bodies."

Mr Athavale told Business Line that there indeed is a growing trend among the companies towards seeking professional consultancy services from the multidisciplinary firms, and this growing trend is acting as a catalyst for professional services providers to strengthen their collective competencies by establishing synergistic relationships with other professionals.

"In view of liberalisation and globalisation of professional services as envisaged in GATS (General Agreement on Trade in Services), suggestions have been received at various forums that practising members should be allowed to enter into partnership with other professionals," he pointed out.

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