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MEMBERS IN PRACTICE

NEWS May 2012

Chairman’s note Welcome to the May edition of MiP News. The Members in Practice Panel has been extremely busy over the last six months dealing with changes in the way your Institute is organised. As a result we have put aside our memory of what was done in the last 25 years and started with a clean sheet. At our February meeting we agreed that our mission statement is: To support and represent members who are in practice (as defined by the Bylaws and Regulations) and consulting members who choose to register on a voluntary basis, to achieve excellence in business by: • providing quality CPD • encouraging a vibrant, interactive MiP community • fostering a collaborative and supportive relationship with the Institute. To raise awareness of practice as an exciting and rewarding career option. The first point relates to you as MiPs and the final point relates to all members. The Panel hopes that you support these objectives as we are here to further your interests. We welcome your feedback, particularly on how we implement these aims. Under the Panel’s new Terms of Reference, panel members can only be on the committee for a maximum of six years. This of course means that all the present panel members will resign over the next six years. If you feel that now is the time to do some voluntary work for your fellow MiPs, please let us know. You will be asked to give up four full days each year for meetings, usually in London plus some hours in between meetings. On the plus side you can draw great satisfaction from what we do, (particularly the organising of the annual conference) and make some great friends along the way. I would like to thank Robin Tidd who resigned in February after 25 years on the Panel for his massive contribution to the MiP cause and wish him well for the future. Unfortunately we are not able to thank our dear friend Paul Koumi as he tragically passed away at the age of 59 while on holiday in Hungary. His obituary is in this edition on page 5. I was pleased to see so many CIMA friends at his funeral on Tuesday 3 April.

Ray Baxter Chairman, MiP Panel


Current affairs

Giving something back Since starting my business five years ago, I have been very lucky to have been surrounded by a network of great people who have given me help and advice, helping me develop my company in the best way for me. Much of this advice has been freely given, without any thought of direct benefit to the adviser – most of the advisers believing in the mantra ‘what goes around, comes around’. I believe this too. If you treat people as you would wish to be treated you can’t go wrong. Further, it is those people who give most freely of their time and energy who have the most successful businesses – not just in terms of money but also in terms of the enjoyment and satisfaction they find in their business life. Of course, you have to make a living and it does not do to give away the crown jewels for free if they are your source of income. However, there may be people who will never become clients, who can be assisted along their journey. For that reason I have written a number of business guides for small business owners for whom having a management accountant is an unrealistic expectation. They are absolutely free for anyone to download from my website and my only goal is that business owners who have previously struggled can get some help with key problems in their business. Other CIMA MiPs provide information on their websites for general consumption or give free seminars. As management accountants we have a lot to give to businesses of all sizes – unfortunately they can’t all pay for it at the time they most need it. However, if we can help them move forward, in however small a way, we will all benefit in the long run. Fiona Bevan Member, MiP Panel

MiP conference: business breakthrough – break through the clouds The MiP conference in 2011 was undoubtedly the biggest and best we have ever held. The quality of the speakers was outstanding and the feedback from delegates and sponsors alike was incredible. The success of this conference has fuelled us to create something even better, so this year we will be joined by some exceptional keynote speakers combined with high quality technical sessions to help you improve your business. To give you a taste of what to expect at the conference, our speaker line up includes: • M  arcus de Maria, who has shared the stage with Sir Richard Branson, Lord Sugar and Tony Robins • S ahar Hashemi, founder of Coffee Republic and Skinny Candy • N  igel Botterill, serial entrepreneur who has also shared the stage with Lord Sugar and Sir Richard Branson • Andrew Harding, Managing Director of CIMA The star attraction of this year’s conference is Sir Alec Reed, who built one of the biggest recruitment companies in the world and was knighted for services to business and charity in 2004. Energetic, engaging and passionate about business, Sir Alec will undoubtedly provide one of the biggest finales we have ever seen at the conference. I really do recommend that you attend the conference as it’s sure to leave you motivated, confident and with great new contacts. When I first set out in practice, I did not attend for a few years because I thought my business couldn’t afford my absence. When I finally did, I realised that I couldn’t afford to miss out! Most people keep on coming year after year, which is the greatest testimony of all. For more information on the conference please visit www.cimaglobal.com/mipevents Hope to see you there! Antony Holdsworth Vice-Chairman, MiP Panel

MiP News 2


Current affairs

Consumer credit group licenses

According to the Office of Fair Trading (OFT) you are likely to need a credit licence if you:

The taking on of a group CCL would be a service to members, but it would have the effect of creating a regulatory process. The OFT would require CIMA to design and operate dedicated monitoring, enforcement and reporting processes. At the moment, the Professional Standards and Conduct Department is only aware indirectly of a small number of members who would find the licensing facility of assistance. The next step is to quantify the actual demand for this, so MiPs who would be interested in using a Group Consumer Credit License should contact the professional standards manager at CIMA.

• s ell goods or provide service on credit or hire or lease out goods for more than three months

CPAs in the UK

A MiP has asked if CIMA could take on a group Consumer Credit License (CCL). Under the Consumer Credit Act 1974 most businesses that provide goods and services on credit or for hire, lend money or provide debt collecting, debt counselling or debt adjusting services to consumers need to have a credit licence and trading in credit activities without a credit licence is a criminal offence.

• lend money or arrange credit for others • h  elp people with debt problems, collect or purchase debts, advise people of, or help them find information on, their credit standing and administer agreements (but do not collect debts). The Professional Standards and Conduct Department has improved the consumer credit licensing section in the Members’ Handbook. Please visit this page for more information and to access specific guidance from the OFT. There may be one instance where it is necessary to have a CCL, which is if you allow clients to pay their bills in instalments. Payment of a bill for a service (and this includes professional services) in more than four instalments could be deemed as the supply of credit. To be certain that you are not supplying credit inadvertently you may wish to alter your payment processes to allow payment in advance as well as arrears or to reduce the number of instalments.

There are many associations of Certified Public Accountants (CPAs) throughout the world. CIMA has formed a joint venture with the American Institute of Certified Public Accountants (AICPA), which enables both institutes to offer the new CGMA designation. Any other CPAs, including members of the Association of Certified Public Accountants (CPAUK), based in Manchester, are not involved in the joint venture between CIMA and the AICPA. Members of the AICPA can and are working in the UK as CPAs.  MiPs will need to be alert to the background of anyone describing themselves as a CPA to ascertain to which institute they are affliated.  For more information about the new CGMA designation and the joint venture between CIMA and the AICPA, please visit www.cgma.org Mike Houldershaw Treasurer, MiP Panel

MiP News 3


Useful links CIMA has produced an animation tool to remind members and students about their obligations to comply with the institute’s code of ethics and protect their professional standing. The animation, as well as a comprehensive online library of CIMA resources including articles, blogs, webcasts and thought leadership, is available at www.cimaglobal.com/ethics

CIMA is committed to upholding the highest ethical and professional standards and maintaining public confidence in management accounting. The CIMA code of ethics is based on the International Federation of Accountants (IFAC) Handbook of the Code of Ethics for Professional Accountants, of the International Ethics Standards Board of Accountants (IESBA).

MiP events Members in practice annual conference Business breakthrough: break through the clouds Friday 22 and Saturday 23 June 2012 Heythrop Park Crowne Plaza, Enstone, Chipping Norton OX7 5UF Two day conference with gala dinner and accommodation: £320 One day conference (Friday or Saturday): £120

Area meetings Members in practice Scotland area meeting Wednesday 23 May, 6.30 – 9.00pm Royal Hotel Stirling, 55 Henderson Street, Bridge Of Allan, Stirling FK9 4HG Free to attend For full listings of upcoming CIMA MiP events, please visit www.cimaglobal.com/mipevents

MiP News 4


And sadly...

MiP Panel Ray Baxter Chairman Stephen Milne Vice Chairman Antony Holdsworth Vice Chairman Alan Scott Secretary Mike Houldershaw Treasurer Elected Members Mark Allen Tony Boffey Kim Swarbrick Fiona Bevan Click here for MiP Panel contact details Hayley Dove Event Co-ordinator T. +44 (0)20 8849 2406 E. hayley.dove@cimaglobal.com

Paul Koumi FCMA, CGMA 1953 - 2012 Paul Koumi joined the MiP Panel of CIMA in 2000 and for the next 11 years helped support self-employed CIMA members with his work on the committee. He was a popular and extremely effective chairman for two years between 2005 and 2007. His greatest contribution was to the annual MiP conference where he served as conference chairman for two years and also as master of ceremonies on two occasions. His dancing skills at the gala dinner were admired by all. He was dearly loved by all who touched him through his CIMA activities because of his wonderful ability to relate to people in a gentle, warm and respectful way. Paul’s life was cut short but he lived more of life in his 59 years than most people could ever hope for. He is sadly missed. This obituary was published in the Staffordshire Evening Sentinel on behalf of all CIMA MiPs.

MiP News 5


April 2012 members in practice newsletter