Accountants can help restore confidence in financial services

Now that Britain is pulling out of recession, accountancy professionals have a vital role to play in improving the reputation of the UK financial services industry.

According to Martin Hagen, President of The Institute of Chartered Accountants in England & Wales (ICAEW), inspiring confidence in financial services is “a shared responsibility”. This involves those in accountancy jobs, banking and finance jobs, as well as regulators, standard setters and customers.

Speaking at a recent ICAEW Financial Services Faculty conference, Mr. Hagen said it was “important to deliver better communication across the financial system”.

He went on to say:

“It is clear to me that there is no final solution to the question of how to address risks to financial stability in the banking system. Business cycles will always exist. But that doesn’t mean that we don’t do our utmost to address future risks.

“It is obvious that the debate around accounting for financial instruments and fair value will not disappear soon. Of course it is right that standard setters listen to the views of all stakeholders and while accounting standards are currently about reporting to investors who do not have privileged access to banks, we must remember that there are other users of accounting and financial information.”