On May 11 2004 the CA and CMA profe...

On May 11 2004 the CA and CMA professions announced their intention to discuss a merger posterior discusjns were guided only by the agency of a broad set of principles and a willingness to talk, and there was a immense commitment to bring the respective memberships into these discussions as quickly as possible.

The BC Council's solitary commitment at that time was to bring the issue to the BC membership for discussion.

This l to six weeks of intense consultation across the province, during which we talked to above 1,200 members. I'd like to thank all of you who participated in the sessions and/or communicated with us on email, phone, or via the discussion arrange for your input.

While we heard from those vehemently in favour, those strongly oppos and members with each opinion in between, there was a great deal of consistency in the questions asked, the in the greatest degree common being:

* What are the reasons for and benefits of merging?

* Have you analysed the alternatives to a merger particularly the "make v buy" option?

* in what manner can we address concerns about diluting the brand?

* make known me about the CMAs' training program, demographic makeup, and market positioning.

* What is the ratification process?

* What are the details in succession the proposed education and training system?

* in what manner will standards be maintained and applied in the of recent origin profession?

* How attractive will a multi-stream method be? How will it address competition for senior financial positions in industry?

* by what mode would you brand the merg group?

* What about international reciprocity for CAs?

We've tried, as best we could at this preliminary stage, to answer these questions (the answers are stationed on our website at www.ica.bc.ca/careers/phpBB2/questions.html), however many of your questions will merely be answered as negotiations proce and detailed merger plans are drawn up

On June 17 the profession's national and provincial leaders met in Halifax and decided to continue to the nearest stage: negotiating formal merger plans. The CICA board and the institute presidents vot to work in succession the details needed to disclose a plan. Our work for the summer is to answer your questions and bring you back a formal proposal (assuming no "deal-breakers" rise into view in the meantime).

Once again: the BC Council has NOT vot in favour of a merger; it has vot to continue talks with the CMAs, continue developing the merger picture, and continue analysing the many difficult issues involved in merging brace separate accounting bodies.

The consultations have been frustrating for a members-those who believe we should not consider a merger subordinate to any circumstances and those who wanted more detailed information right away.

To the first clump all I can say is that we hear you. I understand that you would like us to stop this proces now, yet we can't do that. Discussions continue across the native land and the majority of members in BC are interested in hearing more before making a decision. pause assured: You will have the opportunity to cast your suffrage assuming we get that far in the process

To the secondary group, I ask for your patience. We came to you without a formal plan, before details had on a level been negotiated, and before detailed analyses were complet We are now developing a formal merger proposal that will contemplate what we heard in the consultations. This information will be more specific, the details more tangible, and the plans more developed

Of course, the proces could still flow off the rails between now and September. Merger discussions are always involved and never more so than when they involve multiple provincial jurisdictions. As we propel forward, we might find that a merger simply can't be negotiated, on the other hand until we find any deal-breakers, we will continue to be at the table.

In the fall, you'll have another opportunity to voice your opinion. And if Council believes there is overall support for the proposal, you will also have an opportunity to suffrage While the details of ratification have not been finalised, they will accord with the following principles:

* Members will decide whether or not the merger goe ahead;

* stout support (not just a simple majority) is the goal; and

* Voting will be held as concurrently as possible across the country

To the members who've participated in the discussions to date, I thank you again. I confidence you'll continue to follow our progres from one side of to the other the summer and participate in the nearest round of consultations this fall. I believe that with or without a merger our profession will be making big changes in the nearest few years-this month's Feature Story helps to explain why- and I welcome your continuing feedback and advice.

The BC Council has NOT vot in favour of a merger; it has vot to continue talks with the CMAs...

BY RICHARD REE FCA

CEO

Copyright Institute of Chartered Accountants of British Columbia Aug 2004

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