The network debate begins
***June’s Hot Topic***
As European MGI-prefixed firms begin to deal with their network status under European law, so the wider network question for MGI globally is raised again.
I speak to Clive Bennett, CEO to hear what he has to say about the network issue.
By Maxine Brock, International Marketing Manager, MGI.
1. What is the situation in Europe with network status?
As you know, “audit network” has a special legal meaning in Europe and North America.
13 European firms - around 25% of the total are MGI-prefixed and, under European law and IFAC rules, are therefore in a network.
These firms have decided to improve greatly and harmonize their quality controls and develop the MGI brand in a way non-networked firms are not allowed to do.
2. How does this affect the rest of MGI worldwide?
We believe that these European MGI branded firms are pioneers for the rest of MGI.
It also helps to clarify our true worldwide position. At the moment, a third of our member firms worldwide are in a network using the MGI-prefix. That is a very significant number, which we can no longer pretend doesn’t exist.
MGI branded firms rightly want to see more benefit and investment in the brand at a global level.
As I will be arguing over the next year or so, I believe that the only sensible route in the long term is for MGI as a whole to go down the full global network route.
It is now clear to me that the benefits far outweigh the costs, which are, in general, not significant.
I will be speaking more about this in my own newsletter later in the month.
We are planning to take a final decision at the October 2014 AGM in Chicago.
The debate – probably the most important one for MGI members in many years - starts here!
3. Want to know more?
If you would like to know more or discuss further you can meet Clive at the European Area Meeting later this week in Brussels or email him on [email protected]
Do you have something of interest happening in your region? Or want to share a great idea? Contact Maxine Brock, International Marketing Manager at MGI [email protected]