August 1999

NYSSCPA and State Bar Association Leaders Meet

NYSSCPA President Alan E. Weiner and Executive Director Louis Grumet met with New York State Bar Association President Tom Rice and Executive Director William Carroll on July 1. The meeting was part of an effort to forge a closer relationship between the accounting and legal professions.

They discussed at length the concept of multidisciplinary practice, which is a combination of professions from several disciplines practicing in the same firm. An American Bar Association commission recently considered such arrangements and made a recommended that the ABA House of Delegates approve them within strict limitations. The House of Delegates, however, on August 10, tabled the commission's study and instead adopted a report, sponsored by the Florida Bar, that recommends not changing the rules regarding fee-splitting between lawyers and other professionals unless further study shows such a change would benefit the public without sacrificing lawyer's independence and loyalty to clients. The multidisciplinary practice issue is not dead but may not be addressed by the ABA again until its meeting in July 2000.

One of the fact patterns driving consideration of a multidisciplinary practice is the movement of the Big 5 accounting firms (who are also the five largest law firms in Europe) to acquire more legal help in this country.

The New York Bar does not believe it is ready to support any changes in prohibition to the multidisciplinary practice until it has conducted a study. Weiner indicated that he would appoint a task force of CPAs to look at the matter as well. Some of the issues under consideration are confidentiality, conflict of interest, independence, advocacy, objectivity, and fee splitting.

Another topic discussed between the Society and Bar executives was the new continuing legal education (CLE) requirements and how they interplay with CPE requirements for CPAs. The State Bar Association is in the process of establishing a large program of CLE. The Society has applied for CLE provider status. The representatives of each organization agreed it would be in the interest of both professions to explore ways to provide a joint program to the members who are both lawyers and CPAs.

Both parties expressed an interest in jointly developing publications and offering each other's publications on a discount basis to members of both organizations. They also indicated an interest in the possible establishment of a joint committee to explore the many ways in which lawyers and accountants can work together.

The Society representatives explained S.4402/A.8600, the Uniform Accountancy Act, to the Bar representatives and provided them with bill copy. The Bar will have a relevant committee review the proposed legislation for comments.