By Al Edwards, Business co-ordinator
Marshall and Collister
ACCOUNTING GIANT Ernst & Young's (E&Y) operations in Jamaica has come under scrutiny as a result of it having to de-register itself and subsequently re-register as a different accounting entity.
Last year E&Y took the decision to set up a new local office after splitting with its partners, Kenneth Wilson, Raynold McFarlane and Victor Markman who operated the old local practice. The new operation was to become part of the Caribbean practice of Ernst & Young, reflecting the company's focus on the region rather than the separate islands. In April of last year, Phillip Marshall, E&Y's deputy executive chairman was appointed to head the Jamaican operations. A Trinidadian with 25 years accountancy experience, Mr. Marshall said at the time that the new Jamaican office would serve to bolster the regional practice in its bid to provide regional and international professional services.
Mr. Marshall added that as well as offering assurance and advisory business services, the new practice will also focus on enhancing business competitiveness, offering clients professional assistance with corporate finance strategies, tax consulting operational transformation and human resource development among other services.
However, the new entity encountered a major difficult when Mr. Marshall took the decision to register himself as the sole partner of Ernst & Young, chartered accountants in August of 2001. Investigations by the Financial Gleaner revealed that under the Public Accountancy Act 1968 no one can practise accountancy without registering with the Public Accountancy Board (PAB) Mr. Marshall has yet to do so although he has now submitted an application .
A spokesperson from the Institute of Chartered Accountants Jamaica (ICAJ) speaking to the Financial Gleaner said "It is advisable that all
accountants should look to become members of the ICAJ and obtain a practicing certificate. We have no record of Mr. Marshall as a member of the ICAJ." Enquires made at the Board of Public Accountancy revealed that practicing accountants have to be authorised by the Board of Public Accountancy which requires that an accountant obtains the appropriate certification from the ICAJ.
Mr. Marshall has since taken the decision to de-register Ernst & Young Chartered Accountants and re- register the company as Ernst & Young Public Accountants with Roy Collister, a former manager of Geddes Grant as the sole partner of the new entity.
The Financial Gleaner understands that the Board of Public Accountancy has expressed some concern as to this move more notably that the general public was not informed of the change of name.
A senior auditor from a rival firm said: " At this point in time it is very unclear what is the status of Ernst & Young in Jamaica. Mr. Marshall should have taken measures to ensure he had the appropriate certification to practice in Jamaica. He was very remiss not to do so and hence this current confusion. As far as I know Roy Collister has not practised in Jamaica for a very long time. It will be very interesting to see what kind of audit he conducts."
Earlier this week, principals from Ernst & Young Caribbean met with the Board of Public Accountancy to resolve the issue but the outcome of that meeting is not yet known.
Responding to questions put by the Financial Gleaner concerning the ability of the firm to practice in Jamaica, Mr. Marshall's written response read: "To meet the requirements of the Public Accountancy Board, Ernst & Young has re-registered under the Business Names Act as Public Accountants. At this time Mr. Roy Collister, is the sole partner in the firm. In due course additional partners will be appointed to assist us in achieving our goal of establishing an integrated Caribbean firm with a strong leading edge practice. A key element in this strategy will be the recruitment of top Jamaican professionals."
The Financial Gleaner asked the ICAJ what are the requirements for persons wishing to practice as accountants in Jamaica?
The ICAJ responded : "Only the Public Accountancy Board (PAB) may license an accountant for the public practice of accountancy in Jamaica. The PAB licenses practitioners to enable them to offer assurance services. Applicants must meet the following criteria:
1. The applicant must be a member of the ICAJ
2. The applicant must possess " good character."
3. The applicant must be qualified for registration.
The ICAJ issues its own practicing certificates to its members, applying criteria that are even more stringent than those of the PAB. To qualify for a practicing certificate, a member "must acquire thirty months appropriate experience under the guidance of a practitioner who is also a member of the Institute." It should be noted that all ICAJ practitioners must concurrently be licensed by the PAB".
The ICAJ further added that Mr. Collister is presently a " member in retirement" of the Institute. He was admitted to membership with the ICAJ on December 11, 1969.
Rival accountants appear keen to know whether Mr. Colllister holds a practicing certificate from the ICAJ.
The ICAJ said in a written response: "Mr. Collister is a member in retirement, which according to the ICAJ bye-laws means he is a member "not in gainful employment" as an accountant. He is therefore not a practitioner within the ambit of the ICAJ bye-laws."
The question remains can someone practise accountancy in Jamaica without registering with the ICAJ?
"Under the existing framework all persons applying for a PAB licence must first be members of the ICAJ unless a case is made for exemption and granted only by the Minister of Finance who has portfolio responsibility for the accountancy profession in Jamaica," said the ICAJ.
What is clear is that Philip Marshall is the Deputy Executive chairman of the Caribbean practice of Ernst & Young who has assumed the role of Jamaica Country Managing Partner. He is a fellow of the Institute of Chartered Accountants of England and Wales and a practicing member of the Institute of Chartered Accountants of Trinidad and Tobago. He became a partner of the firm in 1975 and Managing Partner of the Trinidad firm in 1992.
