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Under the new ownership requirements, what protections exist to ensure that licensees actually will be in control? The proposed legislation specifically limits non-CPA ownership to 49 percent of the equity and voting interests of a firm. This will ensure that only licensed individuals make the management decisions for the firm. It is important to note that the legislation uses the term "equity interest," which connotes ownership, instead of "financial interest," which may be construed to mean revenue or profit sharing. The use of "equity" clarifies that licensees will actually be in control. The peer review process will ensure that the firm's practice is consistent with federal and state laws and regulations, as well as professional standards.
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