Irish ICA gets tough in disciplinary overhaul
Chartered accountants struck off by the Irish ICA will in future be publicly named under a major revamp of the institute’s disciplinary procedures.
Until now, the institute has adopted a ‘discretionary’ line in relation to expulsions, with the names of those in the more serious cases circulated only among its membership. The tougher approach follows widespread criticism of self-regulation in the Irish financial services sector after the collapse of Dublin-based Taylor Group, a major investment broker with the loss of at least #4m of clients funds.
Irish ICA chief executive Sean Dorgan said there were ‘two or three’ cases every year of auditors being struck off. However, there were ‘many other’ instances in which members are fined, warned, or suspended from membership. The public had a ‘right to know’ when an auditor has been struck off, he added.
‘We take our responsibilities in the area of self-regulation very seriously.
We have a full-time staff of 18 people engaged in this activity at an annual cost to the institute of #1m a year,’ Dorgan said.
The institute’s right to discipline members was challenged in the Irish courts last year when one accountant argued that it was assuming powers which should be reserved to the judiciary. But the Supreme Court ultimately ruled that the institute did have such a right, provided its procedures are fair and has regard to natural justice.
