The Association of International Accountants (AIA), the global body for professional accountants has opened consultations with the Financial Reporting Council (FRC) on the approach to Britain exiting the European Union.

The Prime Minister’s letter to the European Union on Wednesday 29 March 2017 invoking Article 50 presents both challenges and opportunities for professional accountancy bodies working in an international context.

The continuation of mutual recognition of professional qualifications defined by European Union Directive 2013/55/EU (Recognition of Professional Qualifications) is an example of a challenge which presents itself following Article 50 and the AIA are keen to seek clarification on the FRC’s position.

AIA acknowledges that the FRC’s regulatory framework is unchanged by the decision to leave the EU and that it will continue to be applied; we also recognise the statement made on 24 June 2016 following the outcome of the referendum that the FRC will pay close attention to decisions taken by Government and Parliament and continue to work in collaboration with key stakeholders.

AIA Chief Executive, Philip Turnbull, said: “We are confident that the FRC will carefully consider what is best for the accountancy and audit sector as a whole as well as the long term health of the stakeholders they service.

“In order to achieve the most desirable outcome for stakeholders the AIA strongly believe that the nature of this important development warrants a specialised sub-committee within the FRC to consider the implications on the accountancy, audit and actuarial professions more widely.

 “This sub-committee could take evidence from, and discuss specific issues with recognised bodies to address concerns and support professional bodies as we work to maintain wider recognition for our members and qualifications across the European Union, and mitigate, as far as possible, any harmful effects of ‘Brexit’.”