AN ACT 10 IJmcl1d IM. IfCOOUl1Um(:y Proftuicn A ct , 1979.

I :usenl.

(L.5.)

A GATHA BAIlBARA

Presi den t

28th October. 1986

ACf No. XXXIV of 1986

AN ACT 10 IJmcl1d IM. IfCOOUl1Um(:y Proftuicn A ct , 1979.

BE IT ENACTED by the President, by _nd wi lb the advice and

consent 0( ~ HOU5e of RCpnseDtalives. iD litiS prQeDl Parl iame nt

assembled, and by the au thority of the same, as foflow3: -

(I) This Act may be cikd III the Accountancy Profession

<Amendment> Ael. 19S6. and shall be read and COlI!trued as one with

COiimK_UW.b'. tile AccountallCY ProfcMion Act. 1979 hereinafter refe~ to as " the

principal Act" ,

Section 2 of this Act shall COllie inlO f~ 011 hi d.y

(2)

of June. 1991.

For pangra ph (d) of subsection (3) of section 3 of the prillC'ipal

Act tlkre shall be substitu ted the following

H(d) be ball obtained tile degree of Bachelor of Arts (Accoun·

tancy) (HonOUll) in the Faculty of Manallement Stlldi~ of the

University of Malla in accordance with the statute. and rule!

of that Univers.ily

Prov ided th at where a pcnon holds .IOfciao CQuiY3k.Ilt ao;a<Je,..

mic qualification relatioSio the accountancy profession as at the re\&.

vallt time is recognittd by tbe Universily of Malta, the Minister

shall. on the advice of the Board, dispense sl.I<:h person from the

requirements of this parngnr.pb after sw.;b penon shall bave paJSed

such e~mina tion or uaminations in local laws and in those other

subjecl5 as the Minister may prescribe.".

Se<:lion 4 of the pr incipal Act Ihall be amended as IoUowa

(a) in subsc<:tion (]) thereof immediately after tbc woros

" section 3 of lhis Act" there lhall be added the words "aDd who

also satisfies the Board that he has adequate experience in tlIe

practice of accountanq"

(b)

subsection (2) thereof shall be unumbered as 5IIbseclion

01; and

(c) immediately .fter sub5cction (I) thereof there shall be

added the following new subsection

"(2) The experience gained by a person during tile work.

phase under the worker.student scheme shall be dcemed to be

adequate e~peril'nce, in part or in whole. for the purposes of

sub5cction (1) of this 5OCtion,H.

Section 6 of Ihe principal Act shall be amended as foHows;

H

(a) in subsection (I) thereof for tbe word "four theu shall

be substituted the word "six";

(b) for sub5cction (2) lhere shall be SUb$lituted the following

~ (2) The cha irman and 1 .... 0 of Ihe other six members

shaH be penons of recognized standing and eJlperience in

business matters or in industrial relations or in the public

service; the other four members shall be holders of a warrant

issued under section 4 or $CCtion S of Ihb Act and sha ll be

persons 01 experience in acadl'mic or professional matterJ.

Two of these other four members shall be appointed by the

Minister. one after consulting the Un iversity of MaUa and the

other after consulting any association or associations for the

time being recognized as an approved accountancy body or

bodies.": and

H

(cl in subsection m Ihereof fOl" Ihe "''Om " three there ili.:lll

be substituted the word " four".

Section II of th e principal Act shall be amended as follows: ~~dm"" 01

_lion It

(a) in sub$CCtion (I) theuof for the words "PS auditor" and 01 tll<

"as auditors" there shall be respectively substituted the words pri .... pat ""I.

"u accountant or as auditor" and " as accountants or as auditors"

(b) subsor:1ions (2) and ()) thereof shlll be renumbered ns-

pectiw:ly (S) and (6): and

(c) immediately afler subsection (I) thereof there shall be

added the following new subsections

" (2) (a) The indemnity insurance refen-cd to in sub-

section (I) of this sectioo shall also extend 10 cover claims

made in cbe five years immed iately following the cessation of

the policy as a result of !be uCiumcnt of or tbe surrende r of

the warrant by any partner or practitioner and pl'Ovided Ihat

the negligent act. error or omis,ioJl giving rise to Che claim

had OCC1JlTcd during the period of iru;urancc of the policy.

(b) In the ewnt tkat an insurallCe policy is trail$-

fcrred from one insurer 10 another, the new policy shall

extend 10 in6cmnify the assured against any loss or claim

made against cbe assured in respect of any negligent act, error

or omission which has occurred, or is alleged to have occurred,

prior 10 Ihe in~-eplion of the new policy , provided tha t the

assured is unawau of such loss or claim at the lime of com.

plel;ng the new policy. and such loss or claim has not been

nOlifed under any other policy attaching prior 10 the inccption

of the new policy.

(3 ) (a) The requirement of an indemni ty insurance under

this !ieCIioD shall not apply to any persotl who is the holder

of the warrant of aCCO'Untanl or of auditOl" in respect of any

year in which he has DOt exercised the profession of aC\:OU ntant

or auditOl" and who has before the commencemenl of such

year informed the Board in writing that during that year

he will not be exercising the profession ot accountant or

auditor. 11.'1 the case may be.

(b) The proIIi$ions of paragraph (a) of this subsec_

tioo shall not be eonstrued as exem pting any person from the

oblig.alion to b.J covered by an indemnity insurance tor the

further period of fivt: yean immediatdy toUowina any year

in which he $0 exercised suc h profeuion.

(c) F or the: purpose of this 5lIbsection any penon

holding the warrant of aC\:OUntant 01' the warrant of auditor

who in any year _

(i) does nOI in any manner cxercise a ny of the said

professions; or

(ill exerci!.es any of the said professions u an

employee of the Government or of a body corporate

established by Jaw. or of another person. or of a partner-

ship of accountants or auditors. in respect on ly of the

exercise of such professions in the COUl'SC of his dut iQ

during such empiO)'l'llent.

shall be exempted from the obligation to be covered by aD

indemnity insurnoce under subsection (1) of this sce1ion.

(4) Every person or partnership bound to be covered

by a n indemnity insurance under this section shall each year

within a week of taki ng out or renewing such indemn ity

insurance inform the Board in writing of the name ot the

insUlllIICC company and the. n:!ative number of the insurance

policy ....

Every per50D boIdiDJ a warrant under scctiollS 4 01' 5 of tbe

principal Act immediately before the coming into force of lettion 2

of this A ct. shall continue to be entitled to hold tha t warrant aftec

the corn in!: inlo force of the said SCCfion 2 of this Act.

Passed by the Houseof Represe ntatives at Sitting No. 390 of tbe 21st October. 1986.

P . M uSc.1.1' 'J't .... R1Bll,I!

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