On this page you will find:
- Information about the Annual Membership Meetings taking place in June 2022
- Background explaining the changes
- Executive Summary of changes made to governance documents
- Full revised governance documents - revised Bylaws and supporting Standards
You are asked to approve revisions to your Bylaws
Your Board recommend members vote in favour of the change. Our Regional Councils support the need to modernise our Bylaws.
Our Strategy 2025 ‘Building Our Future Together’ was developed through the biggest member consultation we have ever had – engaging over 90% of our member firms. As compliance services increasingly automate, we received consistent feedback that the value you provide your clients goes beyond the provision of these services. Your clients seek your trusted advice to help them with their challenges and opportunities. This was recognized in our Strategy 2025 (approved and launched in June 2021), which states that that we will be a leading global association of ‘trusted business advisory and accounting firms.’ Our consultation also highlighted that you want your association to maintain its DNA by keeping our focus on audit, tax, and accounting firms. This was also recognised in our Strategy.
Our current membership criteria are prescriptive and do not reflect that the services many members are providing are becoming more advisory in nature. There is a risk that, if they are not modernized, some members may no longer comply with the requirements. Also, quality may not be adequately assessed if services offered fall outside of our requirements. The criteria are inconsistent with our approved Strategy – so alignment is required.
All other major associations and networks have revised their membership requirements to reflect the evolution of their firms. If we do not update our requirements, we will increasingly appear out of date making it hard to recruit quality firms.
The Board has also taken the opportunity to clarify the requirement regarding our termination fees. At present the termination fee, if a member chooses to leave, could represent almost two years of membership dues. This is disproportionately high and there is also inconsistency applied across regions. The proposed change sets the termination fee at 6 months, however there is a cap to ensure the payment is proportionate (the termination fee and any prepaid membership dues will never exceed twelve months of dues).
What do you vote on?
In accordance with the Bylaws, full detailed revised Bylaws are available for you to review. In addition, conforming changes to the Membership and Communication Standards are provided for reference. In accordance with the Bylaws, these have been approved by the Board, subject to membership approval of the Bylaw changes. The Governance documents incorporate revisions to align to our Strategy and clarification regarding the termination fee.
You are asked to vote electronically, as part of our Annual Survey, to support the revisions to the Bylaws, which are summarized in the Executive Summary document, before the Annual Member Meetings taking place on:
North America: June 21, 2022
Latin America: June 28, 2022
EMEA: June 29, 2022
Asia Pacific: June 30, 2022
Full registration details for the meetings will be sent soon, and can also be found on our events pages. If approved, the changes will be effective from July 2022.
Click below to read the executive summary of changes and revised governance documents.
What will change?
Our recruitment will remain focused on quality firms which support your clients with required services (coverage and service line support) and provide learning to help you enhance advisory support to your clients. In essence there will not be a significant change, our recruitment strategy remains focused on supporting your needs. However, the changes will future proof our requirements and ensure consistency with our agreed Strategy. Changes to our Communication Standards will give you the option to promote that our firms provide advisory services – if you feel this would be beneficial to your firm. The level of termination fee is clear and will be consistently applied across regions.
How will we maintain quality?
The Board approve quality criteria annually which the Executive Management Team (EMT) apply when recruiting new members. Quality criteria will be enhanced. Additional evidence will be required if a firm offers services which may not be regulated by a national audit/tax body. This includes reviewing alternative independent credible authorities, for example a recognized professional body representing the relevant service line in the respective country may provide evidence that acceptable standards are followed. The Board will continually update the quality criteria to reflect latest issues to ensure standards remain relevant. The EMT will continue to seek guidance from the Regional Councils in regard to new member applications and if additional evidence is required to demonstrate quality, third-party checks by members or other credible parties will be completed.
How will changes benefit you?
The changes ensure:
- That as your firm develops you continue to meet our criteria and receive the full value of membership.
- Our recruitment strategy remains focused on providing value to existing members.
- New members can support your clients’ needs and you can learn from adopting good/emerging practices.
- Our association remains modern and attractive to high quality firms.
- Our Communication Standards provide you with the option to highlight that our members provide advisory services to better demonstrate value to your existing and potential clients.
- The level of termination fee is proportionate and clear, so members are treated fairly. The clarity ensures that there are no surprises if a member does choose to leave the association.