CIMA welcomes EC Simplification Initiative

12 July 2007

CIMA (the Chartered Institute of Management Accountants) welcomes the most recent consultation on the European Commission's Simplification Initiative published today (12 July).

As the only international accountancy body with a sole focus on business, CIMA welcomes the EC's considered approach to reducing the regulatory burden faced by businesses today. However, careful consideration should be given to how this might reduce benefits to other stakeholders as well as reduce costs for business.

CIMA members work in business at all levels, and often find themselves faced by a maze of regulatory issues. Although the Institute appreciates the worth of compliance, it is equally aware that too much red tape can divert the finance function from its core aim of helping companies to create value.

Subject to careful review of the initiative, Charles Tilley, Chief Executive at CIMA, says:

"The total administrative burden to the UK's businesses, charities and voluntary sector was recently estimated at £13.7 billion per annum. It's good that regulators take stock every now and then, to consider the regulatory burden as a whole, rather than just consider the individual regulatory interventions. It is arguably easier to add, rather than to take away from the regulatory burden."

CIMA will be looking at the proposals in more detail and consulting with its members.

ENDS

For further information, please contact:
Katie Scott
Senior Press Officer, CIMA
+44 (0) 20 8849 2347
Katie.Scott@cimaglobal.com

Notes to editors

1. CIMA (the Chartered Institute of Management Accountants) is the only international accountancy body with a sole focus on business. It is a world leading professional institute that offers an internationally recognised qualification in management accountancy, focusing on accounting in business, in both the private and public sectors. It is the voice of over 158,000 students and members in 161 countries. CIMA is responsible for the education and training of management accountants who work in industry, commerce and not-for-profit and has more members in the public sector than any other UK based body. CIMA prides itself on the commercial relevance of its syllabus, which is in tune with the activities of high performance organisations, and evolves continually to reflect the latest developments in global business. According to independent research conducted by the University of Bath School of Management, CIMA's syllabus and examination structure are the most relevant to the needs of business of all the accountancy bodies assessed. See the CIMA Difference report for further information at www.cimaglobal.com/thecimadifference. CIMA is committed to upholding the highest ethical and professional standards of members and students, and to maintaining public confidence in management accountancy. For more information about CIMA, please visit www.cimaglobal.com.