Annual review 2015 Highlights of faculty activity and financial statement

Annual review 2015
Highlights of faculty activity
and financial statement
BUSINESS WITH CONFIDENCE
icaew.com/cff
Chairman’s report
This year’s Annual Reception at the Institute of Directors
on Pall Mall on 15 October was extremely well
attended. Guests from the faculty’s member firms and
across the corporate finance world enjoyed speeches
from guest speakers Dale Murray CBE and ICAEW’s
Michael Izza. The faculty also launched its app for iPad,
which can be downloaded from the App Store.
I am delighted to report, as the new
chairman, another very successful year for
the Corporate Finance Faculty in 2015.
This year has been one of the most prolific with regards
to the faculty’s output, particularly in the areas of public
policy, technical and thought-leadership work, not to
mention the highly successful and well attended events,
10 issues of Corporate Financier, and the publication of
Creative industries – routes to finance.
The faculty played a major role in ICAEW’s projects
during 2015. The faculty organised a forum in
conjunction with ICAEW’s North West Region and the
British Business Bank to explore funding gaps to be
addressed as part of the development of the ‘Northern
Powerhouse’.
The faculty’s biggest initiative of the year was the
publication of Creative industries – routes to finance – a
guide to funding and investment for arts, cultural and
creative organisations. It outlines the many, varied
forms of finance used across the arts and creative
industries. The aim is to help creative organisations to
access finance, understand the options available, and
become more resilient and successful. Michael Izza,
Chief Executive of ICAEW, launched this publication
alongside Ed Vaizey MP, Minister of State at DCMS, at
the National Theatre on 18 November.
I would like to take this opportunity to express my
gratitude to the many volunteers who work with the
faculty to reach its goals, and in particular the faculty’s
board, executive committee and technical committee.
I would also like to thank: Jonathan Boyers, KPMG;
Nigel Crockford, Consultant; Simon Hawes, PwC; Jim
Keeling, Corbett Keeling; and Stephen Welton, Business
Growth Fund for their commitment to the faculty
through the years.
I would also like to welcome: Frank Carter, KPMG;
Ron Emerson, British Business Bank; Martin Jacobs, PwC;
Philip Robert-Tissot, Non-Executive Director; Mark
Russell, Shareholder Executive; and Ian West, Capita,
who have joined the Corporate Finance Faculty’s Board.
My gratitude also goes to the faculty’s staff, led by
David Petrie, and including Katerina Joannou, Shaun
Beaney, Lorraine Sinclair, Veronica Zabrini, and to
Marc Mullen, Corporate Financier editor, and to
the Progressive Content team. The faculty’s many
achievements would not have been accomplished
without their conscientiousness, hard work and
dedication.
Mark Pacitti
Chairman, ICAEW Corporate Finance Faculty
The faculty’s technical work in 2015 included Guidance
for preparers of pro forma financial information, as well as
responses to many policy and regulatory consultation
exercises.
Corporate Finance Faculty Annual Review 2015
3
Highlights from 2015
1. Extending the reach and impact of the faculty
Notable faculty initiatives in 2015 included the following.
• Faculty marks growing role of IP in M&A
The Corporate Finance Faculty’s forum at Simmons & Simmons on 26 February on ‘IP, Competitive Advantage
and M&A in the Global Market’, also marked the publication of the best-practice guideline about IP aspects
of deals.
• Faculty contributes to government’s Digital Catapult programme
The faculty took part in a new initiative by the UK Government’s Digital Catapult programme.
• ICAEW team goes ‘fast forward’ for young entrepreneurs
A 10-strong ICAEW team, led by faculty staff, helped to mentor 20 start-up entrepreneurs in Shoreditch on
17 March.
• ‘Business is Great’ in Birmingham
The Department of Business, Innovation & Skills asked ICAEW to talk about access to finance as well as the
faculty’s The Business Finance Guide in its ‘Business is Great’ morning in Birmingham on 26 February.
• Boosting Finance for the North West
The faculty, ICAEW’s North West region and the British Business Bank together organised a breakfast forum
in Manchester. ‘Boosting Finance for Business Expansion’ was hosted by KPMG on 4 June, as part of the new
‘Northern Powerhouse’ initiative.
• Boosting investment in the UK and in Cyprus
ICAEW and the faculty took part in an important conference on 8 October about boosting business expansion
and investment in Cyprus, speaking alongside the Cyprus Minister of Finance, Harris Georgiades.
• Roundtable on NESTA’s Digital R&D Fund for the Arts
Shaun Beaney took part in a roundtable at Arts Council England on 2 October to discuss NESTA’s Digital R&D
Fund for the Arts.
• AFME hosts ‘Funding Opportunities’ forum
David Petrie took part in ‘Funding Opportunities for Europe’s SMEs’, a forum at 25 Canada Square on
30 November, organised by AFME (investment banking association) and also supported by the BBA and the
European Banking Federation.
• Launch of Creative industries – routes to finance
On 18 November at the National Theatre, Michael Izza, Chief Executive of ICAEW, launched Creative industries –
routes to finance, alongside Ed Vaizey MP, Minister of State at the Department for Culture, Media & Sport.
• Corporate Finance Faculty app launch at the faculty’s Annual Reception, 15 October
This year has seen growth in the membership of the faculty and this has helped us to carry out our work on behalf
of members. We were delighted to welcome: Marsh; Shareholder Executive; Gibson Dunn; Clydesdale and Yorkshire
Banks; Hampshire Trust Bank; Cantor Fitzgerald; Brewin Dolphin; Samena Capital; Synapse Information and
Buzzacott as new corporate members. Our work with other organisations has also developed significantly.
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Corporate Finance Faculty Annual Review 2015
2. Lobbying and influencing
The faculty led many significant events and initiatives in 2015.
• The Corporate Finance Faculty’s Annual Reception on 15 October 2015 at the Institute of Directors, including
guest speakers Dale Murray CBE and Chief Executive of ICAEW, Michael Izza.
From left to right: Michael Izza, Chief Executive of ICAEW; Dale Murray CBE; Mark Pacitti, Chairman of the
Corporate Finance Faculty; Gavin Petkin, regional director, Business Growth Fund; Tim Hawkins, Managing
Director, Shawbrook Business Credit; David Petrie, Head of the Corporate Finance Faculty.
• The launch of Creative industries – routes to finance at the National Theatre on 18 November 2015.
From left to right: John Kampfner, Chief Executive, Creative Industries Federation (co-author of Creative industries –
routes to finance); Ed Vaizey, Minister of State at DCMS; David Glick, Chief Executive, Edge Investments;
Shaun Beaney, Corporate Finance Faculty, ICAEW (co-author of Creative industries – routes to finance);
Keith Morgan, Chief Executive, British Business Bank.
Corporate Finance Faculty Annual Review 2015
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3. Member communications and services
Corporate Financier magazine
The faculty has continued to develop its publication Corporate Financier, keeping members up to date with
emerging trends, policy and technical issues, and highlighting new opportunities for businesses, investors
and advisers.
Corporate Financier features included themes such as:
• Jackie Bowie on cautious optimism about 2016 in world financial markets;
• Vicky Meek looked at what’s underpinning M&A in global construction;
• M&A in funeral services;
• latest trends in cyber security in corporate finance;
• the future of AIM;
• profile of Andrew Nicholson and Neil Thomas, UK Head of Corporate Finance, and Head of M&A at KPMG;
• Alan Giddins and 3i’s buyouts strategy;
• US infrastructure funds in the UK/Europe; and
• the potential of listed private equity.
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Corporate Finance Faculty Annual Review 2015
Social media
Social media is an increasingly important form of communication for our members. The faculty’s social media now
includes more than 4,400 LinkedIn group members and more than 3,000 Twitter followers.
This year, the faculty’s announcements and blogs have included:
• ‘Proposed ‘overhaul’ of EU prospectus regime’;
• ‘Autumn Statement 2015 & subsequent announcements – anything of interest for corporate financiers?’;
• ‘Corporate Finance Faculty supporting AFME’s ‘Funding Opportunities for Europe’s SMEs’ forum, London,
30 November’;
• ‘Accounting for M&A’;
• ‘The Billion Dollar Question: putting a price on intellectual property in M&A – Corporate Financier magazine,
July/August 2015’;
• ‘Faculty to take part in British Business Bank’s South West growth conference – Bristol, 24 June’;
• ‘Deloitte: Mark Pacitti appointed new ICAEW Faculty chairman | Deloitte UK’;
• ‘Can we have some more? Britain’s £466bn infrastructure challenge – Corporate Financier magazine, April 2015’;
• ‘Call for views on the Prospectus Directive’; and
• ‘Lights. Camera. Action! Financing Britain’s creative industries on the world stage – Corporate Financier magazine,
Dec 2015/Jan 2016’.
Faculty blogs can be viewed under ‘corporate finance’ at ion.icaew.com/Talkaccountancyblog/
Best-practice guideline
IP in M&A – legal considerations
Creative industries –
routes to finance
Authors: Michael Gavey, Mark Curtis and Lydia Torne, Simmons & Simmons
February 2015
Issue 62
A guide to sources of funding and investment
for arts, cultural and creative organisations
BUSINESS WITH CONFIDENCE
icaew.com/creativeindustries
BUSINESS WITH CONFIDENCE
Corporate Finance Faculty Annual Review 2015
icaew.com/cff
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4. Technical leadership
The faculty’s Technical Committee has responsibility for technical work in the area of corporate finance. The
committee reviews and comments on draft regulation and legislation which may impact on the day-to-day work of
faculty members. In 2015, the faculty led or contributed to the response on 14 consultation exercises.
• ICAEW REP 19/15 Duty to report on payment practices and policies, one of a number of measures in the Small
Business, Enterprise and Employment Bill.
• ICAEW REP 30/15 Nullification of ban on invoice assignment clauses, one of a number of measures in the Small
Business, Enterprise and Employment Bill.
• ICAEW REP 41/15 Proposed amendments to the rule books for the ISDX growth market, ISDX.
• ICAEW REP 51/15 Auditing and ethical standards – implementation of the EU audit directive and audit
regulation, FRC.
• ICAEW REP 73/15 Building a capital markets union, European Commission.
• ICAEW REP 74/15 Review of the Prospectus Directive, European Commission.
• ICAEW REP 75/15 Tax advantaged venture capital schemes: draft legislation & explanatory notes, HM Treasury.
• ICAEW REP 86/15 PCP 2015/1 Dividends, Takeover Panel.
• ICAEW REP 103/15 Improving the quality of reporting by smaller listed and AIM quoted companies, Financial
Reporting Council.
• ICAEW REP 119/15 Restrictions and suspensions of voting rights, Takeover Panel.
• ICAEW REP 120/15 Additional presumptions to the definition of acting in concert, Takeover Panel.
• ICAEW REP 134/15 ISA qualifying investments: consultation on whether to include investment-based
crowdfunding, HM Treasury.
• ICAEW REP 135/15 Taxation of performance linked rewards paid to asset managers, HM Revenue and Customs.
• ICAEW REP 153/15 Changes to the AIM Rules, London Stock Exchange.
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Corporate Finance Faculty Annual Review 2015
Financial statement
Year ended 31 December 2015
2015
£000
2014
£000
561
519
Interest on funds held
0
0
Miscellaneous income
1
10
562
529
Staff costs
340
330
Events, publications and marketing
299
316
Infrastructure, finance and administration
160
154
(287)
(232)
512
569
Net position for the year
50
(40)
Surplus brought forward from previous year
51
91
101
51
Income
Faculty subscriptions
Total income
Expenditure
Defrayment of costs by ICAEW for faculty activities which benefit all ICAEW members
Total expenditure
Surplus carried forward
Mark Pacitti
Chairman, ICAEW Corporate Finance Faculty
Corporate Finance Faculty Annual Review 2015
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Committee and other group membership
(as at 31 December 2015)
FACULTY BOARD
EXECUTIVE COMMITTEE
Mark Pacitti, Deloitte (Chairman)
Mark Pacitti, Deloitte (Chairman)
Giles Derry, Dunedin (Vice-Chair)
David Collins, Dentons
Jim Keeling, Corbett Keeling (Vice-Chair)
Giles Derry, Dunedin
Jackie Bowie, JC Rathbone Associates
Mo Merali, Grant Thornton
Frank Carter, KPMG
David Coffman, Daniel Stewart & Co
David Collins, Dentons
Sachin Date, EY
Ron Emerson, British Business Bank
Martin Jacobs, PwC
Mo Merali, Grant Thornton
Jon Moulton, Better Capital
Philip Robert-Tissot, Non-Executive Director
CORPORATE FINANCE FACULTY STAFF
David Petrie, Head of Corporate Finance
Shaun Beaney, Manager, Corporate Finance Faculty
Katerina Joannou, Manager, Capital Markets Policy
Lorraine Sinclair, Services Manager
Veronica Zabrini, Operations Executive
Maggie Rodriguez-Piza, Funding London
Mark Russell, Shareholder Executive
Selina Sagayam, Gibson Dunn
Chris Searle, BDO
Chilton Taylor, RSM
Ian West, Capita Plc
TECHNICAL COMMITTEE
Chris Searle, BDO (Chair)
Patrick Aylmer, Fox Investments
David Cattermole, KPMG
John Chapman, RSM
Catherine Clarke, Business Growth Fund
Roger Gregory, Pitmans
Chris Jarvill, EY
Katharine Johnson, PwC
James Lewis, Deloitte
Tandeep Minhas, Taylor Wessing
Simon Mollett, Beechcroft Associates
Susan Nyman, Grant Thornton
Charles Romaine, BDO
Richard Thompson, Cantor Fitzgerald
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Corporate Finance Faculty Annual Review 2015
The Corporate Finance Faculty’s professional network includes 7,000 members
and more than 80 member organisations.
Its membership is drawn from major professional services groups, specialist
advisory firms, companies, banks, private equity, venture capital, law firms,
brokers, consultants, policymakers and academic experts. More than 40% of
the faculty’s membership is from beyond ICAEW.
The faculty is ICAEW’s centre of professional excellence in corporate finance.
It contributes to policy development and many consultations by international
organisations, governments, regulators and other professional bodies.
The faculty provides a wide range of services, events and media to its
members, including its magazine Corporate Financier.
The faculty initiated the development of the first international Corporate
Finance qualification (including the ‘CF’ designation) for practitioners and
launched a Diploma in Corporate Finance with the CISI in 2012.
ICAEW is a world leading professional membership organisation that
promotes, develops and supports over 145,000 chartered accountants
worldwide. We provide qualifications and professional development, share
our knowledge, insight and technical expertise, and protect the quality and
integrity of the accountancy and finance profession.
As leaders in accountancy, finance and business our members have the
knowledge, skills and commitment to maintain the highest professional
standards and integrity. Together we contribute to the success of individuals,
organisations, communities and economies around the world.
Because of us, people can do business with confidence.
ICAEW is a founder member of Chartered Accountants Worldwide and
the Global Accounting Alliance.
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