Adrian JohnsonTLDR:
- The head of a UK accountancy body has suggested that increasing the threshold for fines against accountants could encourage more talented individuals to join the profession.
- Michael Izza, CEO of the Institute of Chartered Accountants in England and Wales, believes that current enforcement actions are deterring fresh talent from entering the sector.
The chief executive of the Institute of Chartered Accountants in England and Wales, Michael Izza, has warned that the low threshold for fines imposed on accountants by regulatory bodies may be discouraging new talent from entering the profession. In an interview with the Financial Times, Izza suggested that increasing the threshold for fines could help attract more talented individuals to the field. According to Izza, accountants face the lowest threshold of any profession in the UK when it comes to potential sanctions being imposed on them.
Izza believes that the fear of being subjected to enforcement actions and potential fines deters talented individuals from pursuing careers in accounting. He argues that in order to attract the best people to the profession, accountants need to have a sense that their opinions and expertise are valued and that they will not be unfairly penalized. Izza’s comments come as he prepares to step down from his role as CEO, and it could be seen as a parting shot directed at the Financial Reporting Council (FRC), which oversees accountants in the UK.
While Izza acknowledges the need for accountability and oversight in the profession, he argues that striking the right balance is crucial. He suggests that regulatory bodies should focus on targeting the few bad actors within the industry, rather than imposing potential sanctions on all accountants. By raising the threshold for fines, Izza believes that talented individuals would be more inclined to join the profession, as they would have greater confidence in the system and trust that their careers will not be jeopardized by excessive and disproportionate sanctions.
It remains to be seen how Izza’s proposal will be received by regulators and the accountancy profession as a whole. The issue of fines and sanctions against accountants has been a topic of ongoing debate, with some arguing for stricter enforcement measures to prevent misconduct, while others believe that current practices unfairly punish the entire profession. As accountancy bodies strive to attract new talent and uphold professional standards, finding the right balance between accountability and encouraging participation in the profession will likely remain a key challenge.
