New Review Board's funding levels come under spotlight

Proposals for the profession’s new regulatory regime are to be unveiled next week after months of debate by the Consultative Committee of Accountancy Bodies’ working party chaired by Chris Swinson. Attention will then turn to the scheme’s running costs, a controversial area for the six institutes which will have to fund it.

The regime envisages an independent pan-professional Review Board to oversee the institutes’ own regulatory systems. The annual cost of such a board was put at around #500,000 earlier this year. But doubts have grown over whether the board’s costs can be contained within this figure and whether it should be funded entirely by the profession it is supposed to regulate.

KPMG audit chief Gerry Acher said: ‘It is vital the board should be seen to be independent, but if it is wholly funded by the profession this may not be the perception. I would like the Department of Trade and Industry and the Bank of England to pay 25% each, with the profession paying the rest.’

Acher’s idea is unlikely to find favour with the Government. Said one senior figure: ‘Here we are asking for limited liability while at the same time asking the Government to pay for our regulatory regime. It doesn’t make sense.’