ADDRESS BY JOEL EDWARDS AT THE OPENING CEREMONY OF THE 21ST CARIBBEAN CONFERENCE ON JUNE 27, 2003 AT THE RITZ CARLTON HOTEL ,ROSE HALL, MONTEGO BAY, JAMAICA.

• Hon. Omar Davies, Minister of Finance
• Ms. Anthea Rose, Representative of IFAC
• Mr. Garth Kiddoe, President of ICAJ
• Ms. Patricia Hayle, Conference Chairman
• Mr. Samuel Wong, President of the ACCA
• Presidents of the Territorial Institutes
• Affiliate Representatives
• Presenters
• Fellow Accountants
• Members of the Media
• Distinguished Ladies and Gentlemen.

A Very Pleasant Good Morning to each and every one of you.

On behalf of the Board of Directors of the Institute of Chartered Accountants of the Caribbean, I take great pleasure in bidding you a warm welcome to this - the 21st Annual Conference of the ICAC.

This pleasure is made even greater by the fact that this year's Conference is being hosted by Jamaica - the home of the ICAC - and an island that I consider to be my second home. As we all should know, or should have found out, by now, in Jamaica "Everything Irie and there is No Problem, Man" … so Mr. Minister, on behalf of all of the delegates to this year's Conference, may I say that we look forward, over the next few days, to the world-famous hospitality of your country and your people.

Madam. Chairman, Ladies and Gentlemen, while the Institute of Chartered Accountants of the Caribbean does, indeed, function as a forum for the professional and fraternal advancement of the accountancy profession in the Caribbean, and while the Annual Conference of the ICAC does, provide an excellent forum for the networking of Caribbean Accountants, and for each and every one of us to visit with our Caribbean brothers and sisters and to enjoy each other's warmth and hospitality, the key focus of the Conference has been, end must continue to be, the deepening and broadening of the technical skills and expertise of Caribbean Accountants as we better prepare ourselves to face the challenges posed by today's increasingly complex business environment.

The theme of this year's Conference - "The Winds of Change: Accountability in the 21st Century" is, therefore, most appropriate. The strong focus on Governance, Transparency and Accountability that has emerged over the past year has been precipitated, in the view of some analysts, by the Worldcom, Enron, Tyco, Andersen et al scandals, when the public's trust was shaken by a relatively small number of people involved in a relatively small number of high profile corporate scandals.

What we, Accountants, are now being challenged to do is to restore credibility to our profession - a profession that, in fact, relies on credibility as the bedrock of all that it does. The accounting profession needs to deal with this credibility crisis by strengthening itself through increased independence, credibility and public confidence.

It is well known, however, that the crisis in the international accounting profession is merely reflective of the larger crisis in the world financial markets. It is incumbent therefore that not only accountants, but bankers, lawyers, legislators, standards setters, and all other players recognize the need for change - to accept the responsibility for, and work towards, promoting a greater level of accountability and transparency.

There can be no doubt that Accountants throughout the world, have accepted their responsibility and I know that Ms. Rose will gladly tell us about the work that The International Federation of Accountants is doing in this regard, via its various Task Forces, Committees and Boards, when she delivers the keynote address later this morning.

As the world focuses on the development of one set of principles-based standards that could be applied consistently across boundaries, Sir David Tweedie - Chairman of the IASB, summarises the language of accounting in the 21st Century as "tell it as it is". In this age of globalisation, the accounting profession must ensure that the information generated by it to facilitate decision-making by investors, governments, businesses and other organizations is reliable, consistent and transparent across boundaries.

The need for change is not new. The only constant, as we all know is change. The critical factor at this stage is whether we can introduce an appropriate degree of change quickly enough to satisfy the demands of the external environment or whether the required change will be foisted upon us.

The accounting profession needs now to show great leadership if it is to restore the public confidence in the integrity of financial reporting, corporate governance and auditing. We must become more proactive and add greater value to all of our stakeholders.

We in the Caribbean certainly have been doing our part to ensure that we keep pace with what has been going in the world around us. Permit me to take a couple of minutes to briefly update you on the key focus areas being pursued by the ICAC over the medium-term. Theses include:

1. Encouraging the adoption of International Accounting Standards and International Standards on Auditing
2. The institution of a Regional Peer Review/Monitoring System.
3. The harmonization of Continuation Professional Education Policies, and
4. The standardization of qualification requirements for membership.

With regard to the adoption of International Accounting Standards and International Standards on Auditing, I am pleased to report that all of the territorial Institutes have formally adopted the IAS's (now IFRS's) and ISA's. The extent of implementation remains a matter of some considerable debate. A significant amount of training has taken place, and continues to take place, particularly in the larger territories to facilitate the implementation of the IFRS's. We need however, to develop and implement mechanisms to ensure that the smaller territories are not left behind.

As most of you will know by now, the Board of Directors of the Inter-American Development Bank, in late 2002 approved Technical Co-operation projects to support improvements to the Accountancy profession in Jamaica and Trinidad and Tobago. Donor funding, approximating US$650,000 each, will be provided through the IDB's Multilateral Investment Fund. The projects are intended to strengthen the enforcement and compliance framework of the accountancy profession in these territories and to reinforce the integrity, transparency and reliability of information provided to investors.

The funding will be used to support a technical programme to assist chartered accountants and financial sector professionals in the use of International Accounting Standards and International Standards on Auditing. Barbados, Belize, The Bahamas and Guyana are also pursuing similar projects and the ICAC is working with a Barbados-based organization called CARTAC - the Caribbean Regional Technical Assistance Centre - with a view to developing an IDB funded program aimed at uplifting the standard of accounting and auditing practice in the OECS territories. The ICAC was made to understand that the approval of such a program would be greatly facilitated by the formation of an OECS Institute which, I am advised, is imminent.

In terms of the institution of a Regional Peer Review/Monitoring System, I can tell you that, Mr. Brynmor Pollard - former Senior Legal Adviser to CARICOM - was contracted by the ICAC in 2002 to review the various territorial Acts/Bye-Laws/Rules and Regulations and make recommendations on the changes (if any) to be effected in the relevant legislation of the respective countries, in order to facilitate the enforcement of practice review, inter alia.

This was pursuant to the ICAC decision to implement a Monitoring System with assistance from the ACCA. It had been determined that the establishment of a Dedicated Monitoring Unit comprising Compliance Officers employed by the ICAC to carry out the monitoring activity of Caribbean practitioners would be the most appropriate model to pursue.

A preliminary report on the matter, submitted by Mr. Pollard, was considered at the January 2003 meeting and the decision was taken to ask Mr. Pollard to finalise his report, detailing the specific changes that will be required to the legislation in each of the territories. Mr. Pollard has presented this final report and has offered to assist with the drafting of the correspondence to be sent to the various Institutes and/or governments to facilitate the implementation of the legislative changes.

The ICAC has accepted the offer by Mr. Pollard and the ICAC has decided to establish a Committee comprised of the President, a Jamaica representative and a Trinidad & Tobago representative to develop and implement a detailed plan of action for the establishment of the Monitoring System, with the ICAC CEO being appointed as Project Manager for this project.

With regard to harmonization of Continuing Professional Education Policies, most of the territorial Institutes have implemented the harmonised 35/21/14 model for Continuing Professional Education. Many of these Institutes, however, continue to grapple with the issues of getting members to report on compliance and with the overall administration of the system.

It is noteworthy, in this context, that the existing legislative weaknesses preclude the effective enforcement of mandatory Continuing Professional Education. It is anticipated that the implementation of the recommendations of the Pollard Report will serve to rectify this situation.

The ICAC Board at its meeting held yesterday agreed to establish a timeframe of 1st January 2005 for the full adoption of the revised IFAC Guideline which suggests a minimum of 30 hours per year or a minimum of 90 hours in any three-year period and to provide whatever assistance is required by the territorial Institutes to facilitate the implementation of the Guideline within the established timeframe.

The standardization of qualification requirements for membership, and the standardization of CPE requirements will go a long way towards facilitating reciprocal membership and the free movement of Caribbean Accounting Professionals throughout the territories and I am pleased to advise you that a proposal for the standardization of entry requirements is currently being developed by the Membership Committee.

With regard to the vexed question of Caribbean Accounting Examinations, I will say only that after several years of effort, and tens of thousands of dollars of expenditure, pursuing the development of Examinations in conjunction with the ICAC's Affiliate Members, it has been determined that this particular route may not be the most effective one for the ICAC to pursue.

We have now come full circle and have (once again) initiated discussions with the University of the West Indies with a view to establishing, in the short term, Examinations in Caribbean Taxation and Company Law and, in the longer term, a full-fledged Caribbean Accountancy Qualification.

A Framework Paper is being developed and will be circulated before the next meeting of the Board.

Fellow Accountants, as we pursue the Theme of the Conference - Winds of Change: Accountability in the 21st Century - over the next two days, and as we seek to implement the learnings over the next few months and years, we will need to examine the question of how do we know if we are doing well. Let me say that we would be doing well if we continuously and consistently meet the needs of those who rely on the information that we provide. So, Accountability, my dear colleagues, is not an end point or a destination rather it is a process or a journey - a journey from which, for us, there is no turning back.

Madam Chairman, Ladies and Gentlemen, in closing, may I invite you over the next two days to:

• Absorb the superb Technical Content of the Presentations,
• Savour the world-famous hospitality of the Jamaican people and their exquisite cuisine, and
• Enjoy the Beauty of the Country and its many historic sites

but very importantly, my accounting colleagues, I invite you to Feel the Winds, the Winds of Change…as you embark on the Journey of Accountability in the 21st Century.

I Thank You.