The Institute of Cost Accountants of India plans to issue separate guidelines on multi-disciplinary partnerships (MDPs), its president Biswaroop Basu has said. This will be in addition to the regulatory changes that the institute is now bringing in to enable its members to form MDPs with members of other professional bodies.
“Yes. MDP guidelines will be issued separately. We have already issued a draft regulation and have sought views/comments from all stakeholders. Based on the views and suggestions received, we will finalize the MDP guidelines business Line.
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A few days back, the institute started the ball rolling for its members to form a multi-disciplinary firm with members from other professional bodies. More than two months after the Ministry of Corporate Affairs (MCA) gave its approval for a multi-disciplinary partnership framework, it has now come up with a draft regulation for the purpose. The Institute of Cost Accountants of India has about 85,000 members, including 4,000 cost accountants.
The draft notification issued by the institute on August 17 said that a multi-disciplinary firm may be set up as per the “regulation guidelines” of the council for the functioning and regulation of such firm.
45 days have been given for public comments on the draft notification.
Basu said the MDP guidelines would be issued after the proposed amendment to the CWA regulation is notified. This would mean that the guidelines can be expected only in October as the 45-day window closes in early October.
Asked whether any member of the institute who does not have a certificate of practice can enter the MDP, Basu replied in the negative. “MDP can be made only by members in professional practice. No member of the Institute who does not have full time practice certificate is not allowed to enter MDP. Same is the case with all other professionals like Chartered Accountants, Company Secretaries, Engineers and Architect Only an actuary who does not have a certificate of practice may be permitted by the central government or the council to be a participant in the MDP of professionals in practice,” Basu said.
other professional bodies
Already, the Institute of Chartered Accountants has amended the format relating to multidisciplinary partnerships and formulated guidelines for its members.
Sources said the Institute of Company Secretaries of India (ICSI) is also in the process of issuing guidelines. “The ICSI Council has not yet approved the guidelines which are being framed. The committee that looked into it has given its recommendations and we expect the draft guidelines to be released soon for public comments.
A multi-disciplinary firm is one that provides financial audit and other services including cost audit, secretarial audit, actuarial and valuation services under one roof. Globally, Germany, Australia, the UK and other European countries have adopted the multidisciplinary partnership model with different stipulations.
The multidisciplinary partnership structure is seen as an important step in building the size and capacity needed to grow into a global firm. Recently, Commerce and Industry Minister Piyush Goyal encouraged the CA Institute to create the first set of global CA firms in the next three years – on the occasion of the 73rd CA Day.
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