Accountancy Profession (Amendment) Regulations, 2010

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 18,560, 5 ta’ Marzu, 2010

Taqsima B

L.N. 111 of 2010

ACCOUNTANCY PROFESSION ACT

(CAP. 281)

Accountancy Profession (Amendment) Regulations, 2010

IN exercise of the powers conferred by article 8 of the

Accountancy Profession Act, the Minister of Finance, the Economy

and Investment has, on the recommendation of the Board, made the

following regulations

The title of these regulations is the Accountancy Title.

Profession (Amendment) Regulations, 2010, and they shall be read

and construed as one with the Accountancy Profession Regulations, S.L. 281.01.

hereinafter referred to as "the principal regulations".

(Regulation 11)

Rules of Procedure

1. The title of these rules is the Accountancy Profession Rules of

Procedure.

2. (1)

In these rules:-

"disciplinary committee" means a disciplinary committee appointed in

terms of article 7(16) of the Act;

"the Chairman" means the Chairman of the Accountancy Board and

includes, in the absence of the Chairman from a meeting of the Board, the

member acting as chairman for that meeting;

"Secretary" means the Secretary of the Accountancy Board appointed in

accordance with the provisions of article 6(5) of the Act.

(2) Unless the context otherwise requires, terms used in these regulations

and which are not defined herein shall have the meeting assigned to them in the

Act.

3. (1)

Proceedings of the Board or a disciplinary committee may be

initiated

(a)

by the Board ex-officio;

(b)

following a complaint or information received by the Board in

writing from any person on the conduct of a warrant holder, practising

certificate holder or a firm; and

(c)

following a complaint or information received by the Board in

writing from any person that a warrant holder or practising certificate holder

is unfit to continue to practise his profession on the grounds of mental

infirmity.

(2) The Board may determine the form in which a complaint to the Board is

to be made. Such form shall be made available on the official website of the Board.

(3) Any information or complaint received shall be submitted by the

Secretary to the Chairman who shall place such information or complaint on the

agenda for consideration by the Board at the next meeting of the Board.

(4) The Board shall consider the information or complaint received and shall

determine whether such information or complaint is admissible or whether it is

frivolous or vexatious. In the event that the Board determines that such

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information or complaint is frivolous or vexatious, the person who submitted the

information or complaint shall be notified by registered mail that the Board shall

not proceed any further. Such a decision may be subject to appeal in terms of

article 15B of the Act.

(5) Where the Board determines that such information or complaint is

admissible, and the Board appoints a disciplinary committee to take cognisance of

such proceedings, references to the Board in sub-rules (6) to (12) shall be

construed as references to the disciplinary committee.

(6) The Board may, at its discretion, require the information or complaint to

be confirmed by means of declaration under oath by the person making the

complaint or providing the information. Such declaration shall state the address

and description of the declarant and if any fact declared is not within the personal

knowledge of the declarant, such declaration shall state the source of the

declarant’s information and the grounds for his belief in the truth of the fact.

(7) Subject to the provisions of the preceding sub-rules, in the event of the

commencement of proceedings, the Board shall direct the Secretary to

(a)

serve notice on the warrant holder, practising certificate holder

or firm of the commencement of an ex-officio enquiry pursuant to the receipt

of a complaint or information;

(b)

serve notice on the warrant holder, practising certificate holder

or firm with full details of the ex-officio enquiry or of the information or

complaint received and, in case a declaration has been made under oath

pursuant to sub-rule (6), with a copy of the said declaration under oath;

(c)

invite the warrant holder, practising certificate holder or firm to

make submissions in writing which are to reach the Secretary within a period

to be determined by the Board, which shall in no event be less than fifteen

days;

(d)

warn the warrant holder, practising certificate holder or firm of

the possible outcome of the enquiry including, if applicable, the

administrative fine that may be imposed.

(8) Proceedings of the Board shall be held in public. The Board may,

however, when it considers it necessary or expedient, order that the proceedings be

held in private.

(9) Following the expiration of the period granted for the filing of

submissions pursuant to sub-rule (7)(c) above, the Secretary shall refer a copy of

all the relevant documentation, including the submissions in writing of the warrant

holder, practising certificate holder or firm to the Board.

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(10) A member of the Board shall, in any enquiry in which he may have a

conflict of interest or may be, or may fairly be suspected to be, biased, abstain

from taking part in any such enquiry.

(11) The Board may, at its discretion, at any time during the enquiry invite

the complainant, the person providing information, the warrant holder, practising

certificate holder or the representative of the firm to make oral submissions to the

Board. It shall be permissible for the Board to request the complainant or person

providing the information to be confronted with the warrant holder, practising

certificate holder or the representative of a firm.

(12) Following the conclusion of the enquiry and after having considered the

submissions, if any, of the warrant holder, practising certificate holder or firm, the

Board shall notify the warrant holder or practising certificate holder of its decision,

giving reasons therefor.

4. (1)

Any decision imposing an administrative fine shall specify the

nature of the infringement committed by the warrant holder, practising certificate

holder or firm and the amount of the administrative fine due. Upon notification by

means of a judicial act to the warrant holder, practising certificate holder or firm of

a decision imposing an administrative fine, and without prejudice to any right of

appeal competent to the warrant holder, practising certificate holder or fir, the said

decision shall constitute an executive title for all effects and purposes of Title VII

of Part I of Book Second of the Code of Organization and Civil Procedure.

(2) Notwithstanding the provisions of article 256(2) of the Code of

Organization and Civil Procedure, the executive title referred to in subregulation

(1) shall not be enforceable before the lapse of fifteen days from the service of the

judicial act referred to therein.

€0.47

Subregulation (1) of regulation 2 of the principal Amends

regulation 2 of

regulations shall be amended as follows:-

the principal

regulations.

(a)

immediately after the definition "group auditor"

there shall be added the following new definition

" "the Schedule" means the Schedule to these

regulations;"; and

(b)

immediately after the definition "statutory auditor"

there shall be added the following new definition

" "temporary service provider" means any

individual, other than a warrant holder, seeking to provide

work and, or services comparable to those listed in

regulation 3(2) on a temporary and occasional basis in

Malta;".

For subregulation (1) of regulation 3 of the principal Amends

regulation 3 of

regulations there shall be substituted the following

the principal

regulations.

"(1)

No person other than a warrant holder may perform

the work or render the services listed in subregulation (2)

Provided that a person shall, for all intents and

purposes of law, be deemed to be a warrant holder upon receipt

of a letter by the Chairman of the Board on behalf of the

Minister containing a declaration that such person has the

requirements of article 3(2) of the Act and that he may perform

the work or render the services listed in subregulation (2)

Provided further that a temporary service provider

may perform the work or render the services listed in

subregulation (2) subject to the temporary service provider

meeting the conditions contained in regulations made by the

Minister in terms of article 8A of the Act.".

Regulation 4 of the principal regulations shall be amended

as follows:-

(a)

for the marginal note thereof, there shall be

substituted the words "Work which can only be performed by a

holder of a practising certificate.";

(b)

in subregulation (1) thereof:-

(i) for the words "An audit" there shall be

substituted the words "An audit, or any matter reserved to

an auditor in terms of any other law,";

(ii) in paragraph (b) thereof, for the words "of the

Act." there shall be substituted the words "of the Act:";

(iii) immediately after paragraph (b) thereof, there

shall be added the following new proviso to subregulation

(1):-

"Provided that a person shall, for all intents

and purposes of law, be deemed to be a holder of a

practising certificate upon receipt of a letter by the

Chairman of the Board containing a declaration that such

person has satisfied the requirements of this subregulation

and that he may carry out audits.";

(c)

in subregulation (2) thereof:-

(i) for the words "shall be subject to a fine not to

exceed six thousand euro (6,000.00) and in the case of

warrant holders or practising certificate holders may result

in the institution of disciplinary proceedings." there shall

be substituted the words "shall be guilty of an offence and

shall be liable on conviction to a fine (multa) not

exceeding six thousand euro (€6,000) and, where the

person making a false declaration is a warrant holder or a

practising certificate holder, the Board may institute

disciplinary proceedings against such warrant holder or

practising certificate holder:"; and

(ii) immediately after subregulation (2), there

shall be added the following new proviso:-

"Provided that any decision taken pursuant to the

institution of disciplinary proceedings shall be notified by

registered mail to any person to whom such decision applies and

shall be subject to appeal in terms of article 15B of the Act.".

Immediately after regulation 4 of the principal regulations, Adds new

regulation 4A to

there shall be added the following new regulation:-

the principal

regulations.

" Application.

4A. (1)

Every person seeking to

obtain a warrant granted by the Minister, or a

practising certificate.issued by the Board as

the case may be, (hereinafter referred to as

the "applicant"), shall submit to the.Board an

application form in such form as may be

determined by the Board from time to time

and made.publicly available on the official

website of the Board.together with such other

documentation as may be set out in the

application form

Provided that the Board may, in

ensuring whether an applicant satisfies the

requirement mentioned in article 3(2)(a) of

the Act, request and conduct an interview

with such applicant.

(2) Every applicant shall, together

with the application form submitted to the

Board make a payment of an application fee

of twenty-five euro (€25.00) payable to the

Board.

(3) The Board shall, without delay,

acknowledge receipt of the application form

and the application fee by letter to the

applicant and shall specify

(a)

the periods mentioned in

subregulations (4) and (5) within which

the Board shall determine the

application;

(b)

the procedure under which

a refusal by the Minister to issue a

warrant, or the refusal by the Board to

issue a practising certificate, may be

appealed in terms of article 15B of the

Act; and

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(c)

that an applicant shall be

deemed to be a warrant holder, or a

holder of a practising certificate, where

the Board does not determine an

application form within the periods

mentioned in subregulations (7) and (8).

(4) In the case of an incomplete

application form, the Board shall, without

delay, inform the applicant of the need to

supply any additional information or

documentation, and that the Board shall not

commence processing the application form

unless it receives a complete application

form

Provided that an application form

shall not be deemed to be complete unless the

Board is in receipt of all the documentation

required to be submitted together with the

application form, as set out in the same

application form.

(5) The Board shall determine whether

to issue a practising certificate, or advise the

Minister to issue a warrant, as the case may

be, to an applicant, within sixty days from the

date of receipt of a complete application

form.

(6) The

periods

mentioned

in

subregulation (5) may, prior to the expiry of

the relevant period, be extended by the Board

for one period of not more than thirty days.

Such extension and the reasons thereof shall

be notified to the applicant without delay.

(7) Where the Board has not

determined whether to issue a practising

certificate, or to advise the Minister to issue a

warrant, to an applicant, within the periods

mentioned in subregulation (5), or within the

extended period mentioned in subregulation

(6), such applicant shall, subject to

subregulation (8), be deemed to be, for all

intents and purposes of law, a warrant holder

or a practising certificate holder.

(8) A person shall be deemed to be a

warrant holder, or a practising certificate

holder in terms of subregulation (7), only in

the event that, following the expiration of the

periods referred to in subregulation (5) and, if

applicable, subregulation (6), the applicant

notifies the Board by means of a registered

letter that it has not determined his

application in terms of this regulation, and

the Board fails, within a period of forty-five

days from the date of receipt of the said

registered letter, to determine the applicant’s

application.

(9) Where an applicant is refused a

warrant by the Minister or where a practising

certificate is not issued to the applicant by the

Board, the applicant shall be informed

without delay. Such a decision shall be

notified by registered mail to any person to

whom such decision applies and shall be

subject to appeal in terms of article 15B of

the Act.".

In subregulation (3) of regulation 5 of the principal Amends

regulations, the words "shall be conclusively determined by the regulation

the principal

committee" shall be substituted by the words "shall be determined by regulations.

the Board acting through the committee" and immediately after the

words "Article 7(2) of the Act." there shall be added the words "and

such a decision shall be notified by registered mail to any person to

whom such decision applies and shall be subject to appeal in terms of

article 15B of the Act.".

Regulation 6 of the principal regulations shall be amended Amends

regulation 6 of

as follows:-

the principal

regulations.

(a)

in subregulation (1) thereof:-

(i) in paragraph (c) thereof, the words "or

otherwise; and" shall be substituted by the words "or

otherwise;";

(ii) the present paragraph (d) thereof shall be

renumbered as paragraph (e); and

(iii) immediately after paragraph (c) there shall be

added the following new paragraph:-

"(d)

if applicable, the details of any

subsidiaries, branches, offices or agencies of the

warrant holder or practising certificate holder; and";

and

(b)

for paragraph (d) of subregulation (2) thereof, there

shall be substituted the following:-

"(d)

details, including the address, of any

subsidiary, branch, office or agency in the Member

State;".

Regulation 7 of the principal regulations shall be amended

(a)

in paragraph (j) of subregulation (1) thereof,

immediately after the words "auditing standards;" there shall be

added the word "and"; and

(b)

in paragraph (h) of subregulation (2) thereof,

immediately after the words "and statistics;" there shall be

added the word "and".

In paragraph (b) of subregulation (5) of regulation 8 of the

principal regulations, immediately after the words "the Maltese

authorities;" there shall be added the word "and".

For regulation 11 of the principal regulations there shall be

substituted the following regulation:-

"11. In carrying out any of the following proceedings,

the Board or a disciplinary committee shall ensure compliance

with the provisions of the Schedule

(a) proceedings leading to the revocation,

suspension or subjection to other conditions of a practising

certificate;

(b) proceedings leading to the revocation,

suspension or subjection to other conditions of a warrant;

(c) proceedings leading to the imposition on a

person of any administrative fine, reprimand or other

measure; and

(d) proceedings leading to the suspension,

cancellation, revocation or subjection to other conditions

of the registration of a firm.".

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The Schedule to the principal regulations shall be Substitutes the

Schedule to the

substituted by the Schedule to these regulations.

principal

regulations.

The Appendix to the Schedule to the principal regulations Repeals

Appendix to the

shall be repealed.

Schedule to the

principal

regulations.

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