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HISTORY OF IAFEI

ORIGINS

1950s

In most of the world, the decade of the 1950s was a period of rebuilding. The localized financial practices of pre-war days were perceived as inadequate to meet the evolving responsibilities in the new environment. During the 1950s, delegations from more than 20 national institutes visited the "The controller Institute", USA, already soundly based and active, to learn about their practices in finance and professional organization.

1960s

As the 1960s began, professionals in many parts of the world became convinced of the potential benefits of an interaction with their colleagues in the financial discipline. In many countries, this awareness led to the founding of national institutes. As these institutes began to cope with organizational questions, they found it useful to counsel with USA concerning appropriate objectives and standards and about the techniques of chapter formation and operation.

1961

The Mexican Institute of Financial Executives (IMEF) came into being. An active interface between IMEF and FEI US quickly developed. In 1965, the Association Nationale des Conseillers et Controleurs de Gestion was organized in France. In Italy and West Germany, executives began looking at formats for professional affiliation.

THE FORMATIVE YEARS

 

The earliest meetings of the FEI International Liaison Committee were held in the New York office of the Committee Chairman Max Simpson (American Express), with Paul Haase (FEI US) and Herb Knortz (ITT) attending.

Productive contacts were made in Mexico, France, Belgium, Spain and Italy.

1965

Max Simpson promoted the concept of the National Institute while attending and speaking at the Fourth Conference of Asian-Pacific Accountants in India.

1967

FEI US President Bill Thomas, with Managing Director Paul Haase and member Nick Theofel had a series of meetings in Mexico City with the IMEF leadership, including Mario Hernandez (first president of IMEF), Javier Gonzalez and others. 

1969

The First International Congress of Financial Executives took place in Marbella, Spain, in May 1969 hosted by the newly formed Asociación Española de Ejecutivos de Finanzas (AEEF).

The new umbrella organization was the International Association of Financial Executives Institutes (IAFEI), with a legal situs in Switzerland.

Its first Chairman was Joe Biscop of the Belgian Institute and the first President was Herb Knortz of FEI US.

Founding members:

  1. Instituto Argentino de Ejecutivos de Finanzas (IAEF-Argentina)
  2. Financial Executives Institute of Australia (FEI-Australia)
  3. Financial Executives Institute of Belgium (FEIB-Belgium)
  4. Association Nationale des Conseillers et Controleurs de Gestion
    Now: Association Nationale des Directeurs Financiers et de Controle de Gestion (DFCG-France)
  5. Gesellschaft für Finanzwirtschaft in der Unternehmensführung (GEFIU-Germany)
  6. Associazione Nazionale Direttori Amministrativi e Finanziari (ANDAF-Italy)
  7. Instituto Mexicano de Ejecutivos de Finanzas (IMEF-Mexico)
  8. Instituto Peruano de Ejecutivos Financieros (IPEF-Peru)
  9. Financial Executives Institute of the Philippines (FINEX-Philippines)
  10. Asociación Española de Ejecutivos de Finanzas (AEEF-Spain)
  11. Financial Executives Institute US (FEI-USA)
1970

At the second World Congress in Brussels in 1970, 55 representatives of 15 institutes formalized the creation of IAFEI. It was at this Congress that IAFEI first accepted the recognition of government speakers and business professionals and set the tone for the many great congresses that were to follow.

MATURING IMPACT

 

Through the years, IAFEI was blessed by a long series of distinguished and energetic enthusiasts, including George Moller of Canada, Johannes Puhl of Germany, Romeo Co of the Philippines, Bob Moore of the US, Gilberto Palacio of Mexico, Aníbal Forchieri and Roberto Micele of Argentina, Paul Huber of Switzerland and others, too numerous to mention, who developed their national institutes and promoted the objectives of IAFEI. Through its International Congress, Board Meetings, Area Conferences and Working Committees, IAFEI consistently presented opportunities for the fruitful exchange of ideas, experience and technique in the financial disciplines.

1980s

Through its Committees, IAFEI began to express a viewpoint on matters of financial regulation and accounting principles. This led at times to disagreements among the membership, often reflecting the widespread diversity of views and of national practices represented. One example of such conflict arose when IAFEI was first invited in 1984 to become a full member of the International Accounting Standards Committee (IASC). For some time, IAFEI’s participation in IASC was limited to one representative who served as a member of the Consultative Group. Some countries welcomed the IASC’s initiative to harmonize accounting and financial reporting standards around the world, while others were strongly opposed. A compromise was reached at the end of the 80's when the Institutes agreed to support two representatives of IAFEI on the IASC Consultative Group, while declining direct representation on the IASC Board. Those early meetings in the mid-1980s enhanced the many contributions that IAFEI has made to international harmonization through its continuing consultative Group participation.

 

IAFEI was ably guided through this and other turmoil by Hans Godefroid of Germany, who had become the Executive Director of IAFEI, and by his successors, Claude Cézard of France and Reg Caldwell of Ireland, all of whom traveled widely in maintaining the tight bonds of the organizations.

TOWARD THE 21ST CENTURY

1989

Periodically, IAFEI has explored the nature of its primary missions, its funding and its relationships with the national institutes. Prompted by work begun by Rubén Carranza of Mexico, the Planning Committee chaired by Claude Rozsa of France submitted in 1989 a new strategic plan of the Association. This plan addressed the positions of Executive Director and Secretary, the content and frequency of World Congresses and Area Conferences and the changes to IAFEI By-laws consequent to the above matters.

 

The proposed Mission, Vision and Aims were submitted to the Board of Directors at the World Congress held in Taipei, Republic of China, in October 1990 and adopted at the Board’s next meeting.

1990s

In the early 1990s, the Chairmanships of Herb Phillips (US) and Romano Guelmani (Italy) brought along a significant change, namely by broadening the range of IAFEI's activities and enhancing the participation of the Institutes through improved communication instruments. With the support of the Italian Institute and of corporate sponsors, IAFEI Secretary, Giuliana Bertin (Italy) was instrumental in publishing the first newly expanded Annual Report, thereby bringing added recognition and visibility to the Association.

1991s

In 1991, following several years of work, the Ethics Committee, chaired by Past Chairman Alfredo Amescua, with the cooperation of Carlos Acedo Valenzuela, both of Mexico, presented a first official paper on Ethics during the XXII World Congress held in Cancun, Mexico.

1993

The Technical Committee, chaired by Helmut Schnabel of Germany, published IAFEI’s first major technical report on the global use of commercial paper, followed by a study on the complex subject of derivatives. With that as a foundation, the Technical Committee continued in subsequent years with discussion and publication of a number of significant reports and articles, under the leadership of Michel Peiger of France and David Morris of the US.

1994-1995

The Planning Committee, chaired by Gabriele Fontanesi of Italy, conducted an extended voting process on IAFEI policies and procedures among the Institutes, which was concluded in 1995. This led to a redefinition of the role of the Executive Director and of the Area Presidents and to the modification of the frequency of the Board of Directors' meetings.

1995

In October 1995, prompted by work by Norman Roy of the US and Bob Chase of the UK, a momentous decision was taken by the IAFEI Board when it decided to accept a long-standing invitation to become a voting member of the International Accounting Standards Committee. David Potter (UK) and Thomas E. Jones (US) led the IAFEI representatives in IASC deliberations, thereby providing substantial corporate input for the first time. As one of 16 voting members of IASC and with Tom Jones serving as Chairman, IAFEI played a major role in developing the core set of international accounting standards and the new organizational set up of IASC.

1996

Chairman Máximo Santambrogio of Argentina and Executive Director Giuliana Bertin of Italy kicked off IAFEI's race towards new communication technology. The adoption of the e-mail and the Internet represented a turnaround in networking IAFEI.

Late 1990s

Chairman César Petrusansky of Argentina spearheaded another major step forward in the evolution of IAFEI into a significant international body. Thanks to the newly formed EU-Mercosur Committee, led by Antonio Garrido Lestache of Spain, IAFEI was accepted by the European Commission as COOPECO Member of the Al-Invest Program for relationships between Europe and Latin America.

 

After a survey among IAFEI member institutes, the Financial Ethics Committee, chaired by Gary J. Previts of the US, issued the first IAFEI Model Code of Professional Conduct, to be used by the individual member institutes to assess their existing Codes or to help in developing and adopting their own Codes of Conduct.

 

The Planning Committee, chaired by Roberto Rovera of Italy and assisted by the two Vice Chairmen, Donald Andrews of the US and Felix Liermann of Germany, undertook a global survey among member institutes, drawing a new picture of the Association, while expressing new needs and objectives.

2000

The beginning of 2000 sees IAFEI enlarging its membership in South America with the entrance of the Instituto Boliviano de Ejecutivos de Finanzas (IBOEF).

2003

A most significant development occurs in 2003 with the Japan Association for Chief Financial Officers (JACFO) joining, followed - one year later - by the China Association of Chief Financial Officers (CACFO).

2005

The fiscal year of IAFEI was changed to the calendar year starting January 1, 2005.

2007

Korean Association for Chief Financial Officers (KCFO) joined IAFEI.

2009

The Vietnam Financial Officers Club (VCFO) of Vietnam joined IAFEI.

2009-2010

DFCG-France launched the International Management Controller Survey participated in by several IAFEI member institutes. This survey aimed to better understand the activities, processes, methodologies and tools of management controllers throughout the world.

2012

Stowarzyszenie Dyrektorów Finansowych (FINEXA) of Poland joined IAFEI.

 

Four technical working committees were formed: International Financial Reporting Standards (IFRS) Committee, International Tax Committee, International Treasury Committee, International Observatory of Management Controller Committee

 

Established one-time co-sponshorship/partnership with organizers of international events of interest

2014

Hellenic Institute of Financial Management (EIOD)/Hellenic Management Association (EEDE) of Greece and All-Russian Public Organization Russian Club of Financial Directors (RCFD) joined IAFEI.

 

An additional technical working committee, the Anti-corruption Committee was formed.