CPE Seminar on "The Role of FRC and ICAEW within the UK Regulatory Framework" was held on 19 February 2008 at ICAB Auditorium, CA Bhaban, Dhaka. Mr. Vernon Soare, Executive Director, Professional Standards, The Institute of Chartered Accountants in England & Wales presented the Keynote paper on the topic.

Sayed Manzur Elahi, Administrator, FBCCI and Former Advisor, Caretaker Government of Bangladesh said that the ICAB could be further strengthened to act as the oversight body of the financial reporting of teh Public Interest Entities and the corporate sector of the country. He said for full fledged implementation of the accounting and auditing standards the ICAB may be streamlined with modern outlook as ICAB has been playing the role of the regulator of the profession of the accountants since its establishment in 1973. Over the last 36 years the accountancy profession all over the world has diversified and proved its applicability to the growth strategy of the economy of a country. So in the context of this dimension the institute of Chartered Accountants of Bangladesh may be entrusted with the added responsibility to act as oversight body of the reporting agencies-said Mr. Elahi. Mr. Md. Humayun Kabir FCA, President ICAB in his address of welcome thanked the participants in the seminar and highlighted the oversight functioning of the Institute of Chartered Accountants of Bangladesh and the background of the proposed FRA. Mr. vernon Soare, Executive Director, Professional Standards of the Institute Chartered Accountants in England and Wales presented a paper on the Role of FRC and ICAEW within the UK Regulatory Framwork. Mr. Soare highlighted the functioning of the UK Financial Reporting Council in the context of a developed country like the United Kingdom. Mr. Abdul Hafiz Chowdhury FCA, Session Chairman conducted a lively floor discussion. Through floor discussion members of the Institute were of the opinion that ICAB is the regulatory body of the Profession of Accountants and matters connected therewith which was mandated by the Bangladesh Chartered Accountants Order 1973(P.O. No. 2 of 1973) to the Financial Reporting Act (FRA) and the Financial Reporting Council (FRC) within the framework of FRA may collide with the regulatory functions of the ICAB. The members apprehended that the Financial Reporting Act is the transplation of the Public Accounting Oversight Board (PAOB) and U.K. Financial Reporting Act which are operating in a developed country like the United Kingdom. There may have adverse economic impact resulting in increased cost of doing business and may not be congenial for the growth of our capital market. Therefore, the Govt. should further consider the relevant socio-economic ground realities prevailing in our country. Our country is still in the category of developing country and the GDP is fluctuating between 5 to 6.7% and the Capital Market is still riding on a week track. But the compliance rate to International Accounting Standards is 67% as against 57% in India which is really encouraging.

It was however opined in the interaction that the IFRS/IAS and ISA/IAPS are to be fully implemented in the Corporate Sector of Bangladesh for which the ICAB and other regulatory bodies have to play their due role. For the purpose of full-fledged implementation of the Accounting and Auditing Standards and compliance thereof the Government may examine the possibilities of further strengthening the capital market watch dog of the country the Securities and Exchange Commission and regulator of the accounting profession, the Institute of Chartered Accountants of Bangladesh. The Govt. may also strengthen role of other Regulatory Agencies like the Bangladesh Bank, the Insurance Academy and the Registrar of Joint Stock Companies and Firms and form a Task Force to oversee the implementation of the Accounting and Auditing Standards and compliance thereof in the public interest entities and the corporate sector of the country as a whole. Lastly, the Govt.'s immediate responsibility is to reform and update the companies Act 1994 to create a healthy transparent and accountable Corporate Sector in the country.