Chartered Accountants and CPA propose merger as consolidation ramps up

Over 37,000 Chartered Accountants and CPA members will vote next month on whether to establish a single institute

Chartered Accountants president Sinéad Donovan said the tabled amalgamation is endorsed by the councils of both organisations. Picture: Patrick Bolger

Chartered Accountants and CPA, the two largest all-Ireland professional bodies, have proposed a merger to their members, as a move to consolidate qualifications picks up pace globally.

Over 37,000 Chartered Accountants and CPA members will vote next month on whether they want to establish a single institute, under the Chartered Accountants name, to represent the accountancy profession across the island.

Chartered Accountants president Sinéad Donovan said the decisions made in the coming years by organisations representing the accountancy profession “will have implications for decades to come”.

“As the only two Irish-based accountancy bodies, coming together as a newly enhanced Chartered Accountants will strengthen our voice,” she said.

Chartered Accountants was established by royal charter in 1888 and represents almost 33,000 members and 6,000 students.

It is one of the top 20 professional accountancy bodies in the world, in terms of size.

Ms Donovan added that the tabled amalgamation is endorsed by the councils of both organisations and is “based on months of productive discussions and on a strong financial case”. 

In recent months, Chartered Accountants and CPA entered discussions about the future of the profession in Ireland and realised they shared “significant similarities and objectives”.

CPA president Mark Gargan said a merger would result in one body meeting “the highest educational and professional standards” as both organisations are currently regulated by the IAASA.

Our combined voice would amplify the needs of our profession and our strong commitment to the public interest and future economic growth.” 

CPA represents around 5,000 members and students. Its statutory role as a recognised body is to oversee the professional activities of members and to ensure that education and training standards are maintained.

Over the coming weeks, in advance of voting, teams from both Chartered Accountants and CPA will speak with members across the country to discuss the proposed merger in addition to the legal process required if members vote in favour of it.

Chartered Accountants recently reported that the global accountancy sector is experiencing a wave of consolidation driven by advances in technology, regulatory developments, succession challenges, and the need for firms to enhance their service offering.

The organisation said it is witnessing larger firms seeking to increase their market share and capabilities by merging with or acquiring smaller, specialised operators.

“Hence, we are seeing more consolidation driven partly by the need to embrace digital transformation,” the organisation said.

“In 2024, we can expect to see a further rise in strategic mergers and greater emphasis on cultural alignment post-merger.”

However, consolidation may impact the current tight labour market as smaller companies get absorbed by larger firms and a battle for roles may ensue.