More regulation of accountants welcomed

Date: 18th July 2008

It would be a good idea for unqualified accountants and tax advisers to be forced to obtain professionally recognised qualifications before providing services to small businesses, industry experts have said.

The Chartered Institute of Taxation (CIOT) said that it was pleased that an early day motion (EDM) had been tabled in parliament stating that the term accountant should be legally protected.

Tabled by Vincent Cable, the deputy leader of the Liberal Democrats, the motion noted "that the term 'accountant' is not defined or protected by law".

It explained that "thousands of small businesses and individuals, believing they have engaged qualified accountants, are at risk from harmful and costly business advice from unqualified, unregulated, possibly uninsured advisers".

Mr Cable went on to say that unqualified accountants are not answerable to any regulatory body and so cannot be disciplined for mistakes. As a result, he said the term needed to be protected.

The CIOT said it welcomed the move, but added it would have gone further and included taxation and financial advisers as well.

Nick Goulding, the CIOT's president, explained: "The time has come to recognise the importance of obtaining professional qualifications in order to provide tax services to both business and the public."