The Government has approved a number of amendments to the by-laws of the Institute of Chartered Accountants of Ireland (ICAI), which strengthen its disciplinary procedures, but has also called on the institute to do more in this regard.
The Tanaiste and Minister for Enterprise, Trade and Employment Ms Harney welcomed the changes, which include new disciplinary provisions intended to ensure a more effective system for inquiring into misconduct or incompetence by individual ICAI members. "They will, I believe, improve the regulatory capacity of the institute to improve the future standards of its members in the public interest," she said.
But she said that more needed to be done. Ms Harney, who was instrumental in bringing about the changes currently being introduced, said there were three issues in particular on which she would like to see further progress.
She called on the ICAI to make provision in its by-laws for a more permanent register of disciplinary decisions and recommendations relating to its members, which would be available for public inspection during reasonable business hours and could eventually be placed on the ICAI's Internet site.
"I believe that, when choosing an accountant, the public should have access to all relevant information on his/her professional standing," Ms Harney said.
She also asked the ICAI to introduce changes to the by-laws regarding the status of a complainant "at the earliest possible date". At present, the ICAI's bylaws give members an opportunity to make written representations in explanation of their conduct and to appear before the relevant disciplinary committee but no similar opportunity of response or attendance is afforded to the complainant. "Equity demands, in my view, that the member and complainant be given an equal opportunity of representation," the Tanaiste said.
Finally, Ms Harney said that, while she accepted that independence had to be balanced against professional expertise in the disciplinary process, she was not satisfied with the present balance of representation on the ICAI's complaints, disciplinary and appeals committees.
"In particular, I consider that there is a strong case for the appeal process to be exercised by an independent committee, composed of a majority of non-accountants. I am accordingly asking the institute to include such a provision in its by-laws," she said.
The ICAI said it welcomed both Government approval of the new by-laws and the suggestions for other changes that have been made. It is understood that the proposed measures can be easily incorporated in the ICAI's rules as they involve only minor adjustments and do not need members' approval.
More than 90 per cent of the ICAI's members voted in favour of the rule changes which will allow public access to investigation and disciplinary hearings.
The ICAI is already committed to an inquiry into the conduct of some of its members on foot of the Committee of Public Accounts investigations into DIRT. Any such inquiry will take place under the new code.
