Cabinet approves Ex-post facto approval of the MoU signed in 2008 and renewed in 2014 between the ICAI and ICAEW

Cabinet approves Ex-post facto approval of the MoU signed in 2008 and renewed in 2014 between the ICAI and ICAEW

Cabinet also approves the Renewal of the MoU between ICAI & ICAEW

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved Ex-post facto approval of the Memorandum of Understanding (MOU) signed in 2008 and renewed in 2014 between the Institute of Chartered Accountants of India (ICAI) and Institute of Chartered Accountants in England & Wales (ICAEW).  The Cabinet also approved the Renewal of the Memorandum of Understanding between the Institute of Chartered Accountants of India (ICAI) & The Institute of Chartered Accountants in England & Wales

Benefits:

The instant MoU would help encourage more and more young Indian Chartered Accountants to take up the recognition of ICAEW professional designation to further help them pursue professional opportunities in UK. It is a matter of great pride that a number of Indian Chartered Accountants are holding top level positions in companies in UK and with the recognition from ICAEW the Corporates in UK would be trusting Indian talents and skills more to hire them.There are no financial implications for the Government of India.

Major impact:

The aim is to work together to develop a mutually beneficial relationship in thebest interest of members, students and their organizations.The MoU will put both the accountancy institutes on global radar to play theleadership role in addressing new challenges before profession.ICAl has presence of a significant Chapter in UK namely, UK (London) Chapterof ICAl, thus playing a pivotal role for servicing Indian CAs in United Kingdom.

Implementation strategy and Targets:

This MoU will apply to all appropriately qualified and experienced ICAEW andICAl members irrespective of the syllabus they followed for their home body membership. This recognises the evolution of both qualifications and the CPD responsibilities upon members to keep up to date and, additionally, to describe whether practising and auditing rights will be availableupon joining an institute and, where not, to outline the route of re-qualificationthrough additional examinations and work experience that would be necessaryto achieve this.

This MoU is not intended to create a legally binding relationship and itsprovisions are not intended to give rise to legally binding rights, obligations or liabilities.

Point-wise details

Approval of the Cabinet has been granted in respect of the Ex-post facto approval of the Memorandum of Understanding (MOU) signed in 2008 and renewed in 2014 between the Institute of Chartered Accountants of India (ICAI) and Institute of Chartered Accountants in England & Wales (ICAEW) Approval for the Renewal of the Memorandum of Understanding between the Institute of Chartered Accountants of India (ICAI) & The Institute of Chartered Accountants in England & Wales to establish a mutual co-operation framework for the advancement of accounting knowledge, professional and intellectual development, advancement of the interests of their respective members and contribute positively to the development of the accounting profession in England, Wales and India.

Background:

The Institute of Chartered Accountants of India (ICAI) is a statutory body establishedby an Act of Parliament of India, ‘The Chartered Accountants Act, 1949', to regulate the profession of Chartered Accountancy in India. ICAEW is a world leading professional membership organisation. It provides qualifications and professional development, technical expertise, and protects the quality and integrity of the accountancy and finance profession.