Court orders ACPA to change its name.

A controversial accountancy body representing unqualified accountants suffered a humiliating defeat in the High Court last week, after it was told to change its name because it lacks a genuine system of education, monitoring or self-regulation.

The Association of Certified Public Accountants of Britain failed in its attempt to overturn a decision by the Department of Trade & Industry last year that its use of the word ‘certified’ was misleading.

ACPA, which was started up in 1994 by Wigan-based practitioner Kevin Henry, defended the name, claiming the government could not show it caused any harm.

But the DTI argued that the name gave potential clients the false view the association maintained a system for ensuring a level of professional qualification, standing and competence for its members. The DTI said the word ‘certified’ also implied it was an organisation that operated a genuine system of monitoring and self-regulation.

Lord Justice Jacob ruled the name was likely to mislead and harm the public because they would be more willing to pay higher fees for services from a ‘certified’ accountant.

ACPA now faces paying an estimated five-figure sum for costs levied by the court and its own legal fees.

ACPA, which has more than 250 members, ran into trouble as soon as it was launched.

An early attempt to receive clearance for small company audits met with criticism from ACCA, which threatened to take legal action to force the new body to change its name. CIPFA was also known to have complained.

But the DTI took up the case following these complaints and, in February 1996, ordered the association to change its name. ACPA failed in its application to set aside the direction under section 32 of the Companies Act.

The association was unavailable for comment at the time we went to press.