News

Cost Accountants Institute to frame separate guidelines

KR Srivats New Delhi | Updated on August 21, 2021

Biswarup Basu, President

Norms to be issued once proposed change in regulation is notified, says its President

The Institute of Cost Accountants of India plans to separately issue guidelines on multi-disciplinary partnerships (MDPs), its President Biswarup Basu has said. This will be in addition to the regulatory change that the Institute is now bringing about to enable its members in practice to form MDP with members of other professional bodies.

“Yes. MDP guidelines would be separately issued. We have already issued a draft regulation and have sought views/comments from all stakeholders. Based on the views and suggestions received, we would finalise the MDP guidelines,” Basu told BusinessLine.

Also read: Multidisciplinary partnerships: CAs told not to opt advocates, practising actuaries as partners

A few days ago, the institute set the ball rolling for its members in practice to form multi-disciplinary firm with the members of other professional bodies. It has now come out with draft regulation for this purpose, more than two months after the Corporate Affairs Ministry (MCA) gave its nod for the multi-disciplinary partnership framework. The Institute of Cost Accountants of India has about 85,000 members, including 4,000 cost accountants in practice.

The draft notification issued by the institute on August 17 said the multi-disciplinary firm can be set up in accordance with the “regulating guidelines” of the Council for functioning and regulation of such firm.

As many as 45 days have been given for public comments on the draft notification.

Basu said that MDP guidelines would be issued after the proposed amendment in the CWA regulation is notified. This would mean that guidelines can be expected only in October as the 45-days window closes only in early October.

Asked if a member of the institute who does not hold certificate of practice can enter into an MDP, Basu replied in the negative. “The MDP can be formed only by the members in professional practice. A member of the institute not holding a full-time certificate of practice is not permitted to enter into an MDP. Same is the case with all other professionals viz chartered accountant, company secretary, engineer and architect. Only an actuary who does not hold certificate of practice may be permitted by the central government or the council to become a partner in an MDP of professionals in practice,” Basu added.

Other professional bodies

Already, the Chartered Accountants Institute has amended the form concerning multidisciplinary partnership and framed guidelines for its members.

The Institute of Company Secretaries of India (ICSI) too is in the process of issuing guidelines, sources said. “The ICSI Council is yet to approve the guidelines which are being framed. The committee looking into it has given its recommendations and we expect the draft guidelines to be issued for public comments shortly,” a senior ICSI official said.

A multi-disciplinary firm is one that provides both financial audit and other services including cost audit, secretarial audit, actuarial and valuation services under one roof. Globally, Germany, Australia, UK and other European countries have adopted the multi-disciplinary partnership model with different conditions.

Having a multi-disciplinary partnership structure is seen as an important step in building the necessary size and competence to grow into a global firm. Recently, Commerce and Industry Minister Piyush Goyal had exhorted the CA Institute — on the occasion of the 73rd CA Day — to have the first set of global CA firms in the next three years.

Published on August 21, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like