ICAI Defers Global Network Guidelines after concerns raised by Big Audit Firms

The Institute of Chartered Accountants of India (ICAI) has reportedly decided to put its Global Networking Guidelines on hold following concerns raised by stakeholders, particularly large audit firms with existing affiliations with international accounting networks.

The move means that the implementation of the new framework, which was intended to regulate and facilitate global networking arrangements involving Indian chartered accountancy firms, will remain suspended while the issues raised by stakeholders are further examined.

The ICAI Council had approved the ICAI (Global Networking) Guidelines, 2025 as part of an initiative aimed at enabling Indian CA firms to expand their global presence and develop larger professional networks. The framework was intended to create a structured and transparent mechanism under which Indian chartered accountancy firms could associate with domestic and international professional networks.

The guidelines provided a framework covering matters such as the approval and registration of global networks, permitted structures, prohibited services, annual reporting requirements, ethical compliance, limitations and de-registration.

According to reports, concerns were raised by major audit firms that already have international network affiliations. The firms were reportedly apprehensive about the possible impact of the guidelines on their existing global partnerships, business structures, disclosure obligations and compliance requirements.

The proposed framework could have brought the Indian operations of internationally affiliated accounting networks under a more structured regulatory and disclosure regime. Given the concerns raised and the potential implications for existing business models, ICAI has reportedly decided to reassess the framework before proceeding further. CA Sansaar