Accountancy Profession (Amendment) Regulations, 2016

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19,598, 24 ta’ Ġunju, 2016

L.N. 234 of 2016

ACCOUNTANCY PROFESSION ACT

(CAP. 281)

Accountancy Profession (Amendment) Regulations, 2016

In exercise of the powers conferred by article 8 and 8A of the

Accountancy Profession Act, the Minister for Finance, on the

recommendation of the Accountancy Board, has made the following

regulations

(1)

The title of these regulations is the Accountancy Citation, scope

Profession (Amendment) Regulations, 2016, and these regulations and

commencement.

shall be read and construed as one with the Accountancy Profession S.L. 281.01

Regulations, hereinafter referred to as "the principal regulations".

(2) These regulations implement certain provisions of

Directive 2014/56/EU.

(3) These regulations shall come into force on 17th June 2016.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

immediately after the definition "affiliate" there

shall be added the following new definitions

" "the Audit Regulation" means Regulation (EU)

No. 537/2014 of the European Parliament and of the

Council of 16 April 2014 on the specific requirements

regarding statutory audit of public-interest entities;

"CEAOB" means the Committee of European

Auditing Oversight Bodies;";

(b)

in the definition "competent authorities of other

Member States" the words "or bodies" shall be deleted;

(c)

immediately after the definition "competent

authorities of other Member States" there shall be added the

following new definition

" "compilation engagement" means an engagement

in which a practitioner applies accounting and financial

reporting expertise to assist management in the preparation

and presentation of financial information of an entity in

accordance with an applicable financial reporting

framework, and reports as required by International

Standard on Related Services.";

(d)

in the definition "the Directive", immediately after

the words "17 May 2006" there shall be added the words "on

statutory audits of annual accounts and consolidated accounts as

amended by Directive 2014/56 EU of the European Parliament

and of the Council of 16 April 2014"; and

(e)

immediately after the definition "group auditor"

there shall be added the following new definition

"review engagement" means an engagement

carried out by an auditor with the objective of enabling the

auditor to state whether, on the basis of procedures which

do not provide all the evidence that would be required in

an audit, anything has come to the auditor’s attention that

causes the auditor to believe that the financial statements

are not prepared, in all material respects, in accordance

with the applicable financial reporting framework;".

In paragraph (d) of sub-regulation (2) of regulation 3 of the

principal regulations, for the words "compilation or review of

reports" there shall be substituted the words "reports on a compilation

engagement".

In sub-regulation (1) of regulation 4 of the principal

regulations, for the words from "An audit" to the words "to a person

who" there shall be substituted the following

"Audits and review engagements, or any other matter

reserved to an auditor in terms of any other law, may only be

carried out by an individual, in that individual’s name or on

behalf of an audit firm, holding a practicing certificate in the

field of auditing issued in terms of article 4 of the Act, to an

individual who:".

Regulation 5 of the principal regulations shall be

substituted by the following

5. (1)

Every person who, and every firm

under article 10 of the Act which, is required to be

covered by an indemnity insurance policy in terms

of article 11 of the Act shall be adequately covered

throughout the currency of the insurance policy to

the extent reasonably necessary according to the

particular circumstances of such person or firm, and

in particular by reference to the size and type of

practice and clients

Provided that the insurance cover shall be

inclusive of costs to defend the claim but exclusive

of the amount that may be deducted by the insurance

company on each and every claim under the terms of

the policy.

(2) Without prejudice to sub-regulation (1),

with effect from 1 January 2010, if the aggregate

limit of liability in an indemnity insurance policy is

less than the lower of the limits set out in paragraphs

(a) and (b), as calculated in sub-paragraphs (i) or

(ii), including the proviso after paragraph (b), then

the cover shall be deemed inadequate

(a)

in the case of a sole practitioner

and any connected undertakings

(i) one hundred thousand euro

(€100,000) for the sole practitioner and

any principal other than the sole

practitioner

of

any

connected

undertaking; and

(ii) the amount arrived at by

multiplying the total annual fees charged

by a sole practitioner and any connected

undertaking in the course of his or its

practice, by three;

(b)

in the case of a firm and any

connected undertaking

(i) the said amount shall be

equivalent of one hundred thousand euro

(€100,000) multiplied by the number of

principals in the said firm and any

connected undertakings; and

(ii) the amount arrived at by

multiplying the total annual fees charged

by a firm and any connected undertaking

in the course of its practice, by three

Provided that in the case of a firm

structured in a manner such that the liability of its

owners for statutory audit work is directly or

indirectly limited, the appropriate limit of liability

shall be

(a) (i) five hundred thousand euro

(€500,000) multiplied by the number of

principals in the said firm and connected

undertakings who

(aa) hold

a

practicing

certificate in auditing; and

(bb) are principals which are

audit firms;

(ii) one hundred thousand euro

(€100,000) multiplied by the remaining

principals in the said firm and any connected

undertakings; and

(b)

the total annual fees charged by

the audit firm and any connected undertaking

in the course of its practice, multiplied by five.

(3) For the period commencing on the date of

the coming into force of these regulations, and

ending on the 31 December 2009, every person who,

and every firm under article 10 of the Act which, is

required to be covered by an indemnity insurance

policy in terms of article 11 of the Act, shall be

adequately covered throughout the currency of the

insurance policy in respect of each

(a)

sole practitioner, for a minimum

of fifty-eight thousand and two hundred and

thirty-four euro (€58,234), inclusive of costs to

defend the claim; and

(b)

principal in a firm, for a minimum

of fifty-eight thousand and two hundred and

thirty-four euro (€58,234), inclusive of costs to

defend the claim.

Provided that in the case of a firm

structured in a manner such that the liability of its

owners for statutory audit work is directly or

indirectly limited, the appropriate limit of liability in

an indemnity insurance policy shall not be less than

the lower of the amount arrived at by multiplying

(a)

the number of principals in the

said audit firm and any connected

undertakings by five hundred thousand euro

(€500,000); and

(b)

the total annual fees charged by

the said audit firm and any connected

undertakings in the course of its practice by

five.

(4) In the event of reasonable doubt as to

whether a person or a firm and any connected

undertakings are adequately covered by an

indemnity insurance policy, the matter shall be

conclusively determined by the committee

appointed by the Board for the operation of a system

of quality assurance in terms of article 7(2) of the

Act.".

Regulation 6 of the principal regulations shall be amended Amends

(a)

sub-regulation (2) shall be amended as follows

(i) immediately after the words "each registered

firm" there shall be added the words "and any connected

undertakings,";

(ii) in paragraph (h) thereof, immediately after

the words "member firms and affiliates" there shall be

added the words "of the network";

(iii) in paragraph (i) thereof, for the words "the

registration number." there shall be substituted the words

"the registration number;", and immediately thereafter

there shall be added the following new paragraph

"(j) where applicable, whether the audit

firm is registered pursuant to article 10A(3) of the

Act."; and

(b)

immediately after sub-regulation (4) thereof, there

shall be added the following new sub-regulations

"(5) The register of suspended, revoked and

withdrawn warrants and practising certificates to be kept

by the Board in terms of article 7(4) of the Act shall

include for each warrant holder or practising certificate

holder, including a third-country auditor registered in

terms of article 7(6) of the Act, the individual’s name,

address and registration number.

(6) The register of suspended, revoked and

withdrawn firm registrations, to be kept by the Board in

terms of article 7(4) of the Act shall include for each

registered firm, the firms’ name, address, registration

number and legal form.

(7) The register of defaulter warrant holders and

holders of a practising certificate, to be kept by the Board

in terms of article 7(4) of the Act shall include for each

warrant holder or practising certificate holder, including a

third-country auditor registered in terms of article 7(6) of

the Act

(a) the name, address and registration

number; and

(b) the

breach(es)

of

statutory

requirements.

(8) The register of defaulter firm registrations to

be kept by the Board in terms of article 7(4) of the Act

shall include for each registered firm

(a)

the name, address, registration number;

(b)

the legal form; and

(c) the

breach(es)

of

statutory

requirements.

(9) The register of warrant holders and holders of

a practising certificate who have obtained an exemption

from Continued Professional Education in terms of

Directive 1 made under the Act and are temporarily not in

practice, to be kept by the Board in terms of article 7(4) of

the Act, shall include for each warrant holder or practising

certificate holder, including a third-country auditor

registered in terms of article 7(6) of the Act, the

individual’s name, address and registration number.".

Paragraph (j) of sub-regulation (1) of regulation 7 of the Amends

regulation 7 of

principal regulations shall be substituted by the following

the principal

regulations.

"(j) international auditing standards as

referred to in article 179(2) of the Companies

Act and regulation 4 of the Accountancy

Profession (Accounting and Auditing Standards)

Regulations;".

Regulation 8 of the principal regulations shall be amended Amends

regulation 8 of

as follows

the principal

regulations.

(a)

sub-regulation (1) thereof shall be substituted by

the following

"(1) The Board shall cooperate with the competent

authorities of other Member States and the relevant

European Supervisory Authorities wherever necessary to

carry out the responsibilities and tasks arising from the

Directive and the Audit Regulation.";

(b)

sub-regulation (2) thereof shall be substituted by

the following

"(2) The Board shall render assistance to

competent authorities in other Member States and to the

relevant European Supervisory Authorities, in particular

by exchanging information and cooperating in

investigations related to the carrying out of statutory

audits.";

(c)

in the proviso to sub-regulation (3) thereof, for the

words "the obligation of professional secrecy." there shall be

substituted the words "the obligation of professional secrecy:",

and immediately thereafter there shall be added the following

new proviso

"(4) Provided further that the obligation of

professional secrecy shall also apply to any other person to

whom the Board has delegated tasks in relation to the

purposes set out in the Directive.";

(d)

in paragraphs (b) and (c) of sub-regulation (5)

thereof, for the word "auditors", wherever they occur, there shall

be substituted the word "persons";

(e)

in paragraph (a) of sub-regulation (9) thereof,

immediately after the words "public order of Malta" there shall

be added the words "or breach national security rules";

(f)

sub-regulation (10) thereof shall be substituted by

the following

"(10) Any information received by the competent

authorities of other Member States or European

Supervisory Authorities pursuant to the provisions of this

regulation shall only be used by the competent authorities

of the other Member States or the European Supervisory

Authorities for the exercise of their functions within the

scope of the Directive or the Audit Regulation and in the

context of administrative or judicial proceedings

specifically related the exercise of these functions."; and

(g)

immediately adter sub-regulation (10) thereof there

shall be added the following new sub-regulations

"(11) The Board may transmit to the competent

authorities of other Member States responsible for

supervising public-interest entities, to central banks, to the

European System of Central Banks and to the European

Central Bank, in their capacity as monetary authorities,

and to the European Systemic Risk Board, confidential

information intended for the performance of their tasks.

Such authorities or bodies shall not be prevented from

communicating to the Board information that the Board

may need in order to carry out their duties under the Audit

Regulation.

(12) In fulfilling its tasks under the Audit

Regulation, the Board may delegate its tasks to the

competent authorities of another Member State subject to

the agreement of that authority. Delegation of tasks shall

not affect the responsibility of the Board.".

Immediately after regulation 8 of the principal regulations

there shall be added the following new regulations

" Mutual

8A. (1)

The Board shall respect the

recognition of

principle of home-country regulation and

regulatory

oversight by the Member State in which the

arrangements.

statutory auditor or audit firm is approved and

the audited entity has its registered office

Provided that audit firms approved in

another Member State that perform audit

services in another Member State pursuant to

article 10A of the Act shall be subject to quality

assurance review in Malta and oversight by the

Board of any audit carried out in Malta.

(2) In the case of a statutory audit of

consolidated financial statements, the Board

may not impose additional requirements in

relation to the statutory audit concerning

registration, quality assurance review, auditing

standards, professional ethics and independence

on a statutory auditor or an audit firm carrying

out a statutory audit of a subsidiary established

in another Member State.

(3) In the case of a company whose

securities are traded on a regulated market in a

Member State other than that in which that

company has its registered office, the Board may

not impose any additional requirements in

relation to the statutory audit concerning

registration, quality assurance review, auditing

standards, professional ethics and independence

on a statutory auditor or an audit firm carrying

out the statutory audit of the annual or

consolidated financial statements of that

company.

(4) Where a statutory auditor or an audit

firm is registered in any Member State as a

consequence of approval in accordance with

articles 4 and 10 of the Act and of regulation 4

and that statutory auditor or audit firm provides

audit reports concerning annual financial

statements or consolidated financial statements

as referred to in article 7(6) of the Act, the Board

shall subject that statutory auditor or audit firm

to its systems of oversight, its quality assurance

systems and its systems of investigations and

sanctions.

B

8B. (1)

The

Board

shall

take

Cooperation

with regards to

measures to ensure effective cooperation at

quality

assurance,

European Level in respect of quality assurance

reviews,

reviews.

investigations

and on-site

(2) The competent authority of one

inspections.

Member State may request the assistance of the

competent authority of another Member State

with regard to the quality assurance reviews of

auditors or audit firms belonging to a network

carrying out significant activities in the

requested Member State.

(3) (a)

Where a competent authority

receives a request from a competent authority of

another Member State to assist in the quality

assurance review of a statutory auditor or an

audit firm belonging to a network carrying out

significant activities in that Member State, it

shall allow the requesting competent authority to

assist in such quality assurance review.

(b)

The requesting competent

authority shall not have the right to access

information which might breach national

security rules or adversely affect the sovereignty,

security or public order of the requested Member

State.

(4) Where a competent authority

concludes that activities contrary to the

provisions of the Audit Regulation are being

carried out or have been carried out on the

territory of another Member State, it shall notify

the competent authority of the other Member

State of that conclusion in as specific a manner

as possible. The competent authority of the other

Member State shall take appropriate action. It

shall inform the notifying competent authority of

the outcome of the action and, to the extent

possible, of significant interim developments.

(5) (a)

A competent authority of one

Member State may request that an investigation

be carried out by the competent authority of

another Member State on the latter’s territory.

(b)

It may also request that some

of its own personnel be allowed to accompany

the personnel of the competent authority of that

Member State in the course of the investigation,

including with regard to on-site inspections.

(c)

The

investigation

or

inspection shall be subject throughout to the

overall control of the Member State on whose

territory it is carried out.

(6) The requested competent authority

may refuse to act on a request for an

investigation to be carried out as provided for in

sub-regulation (5)(a), or on a request for its

personnel to be accompanied by personnel of a

competent authority of another Member State as

provided for in sub-regulation (5)(b), in the

following cases

(a)

where such an investigation or

on-site inspection might breach national

security rules or adversely affect the

sovereignty, security or public order of the

requested Member State;

(b)

where judicial proceedings

have already been initiated in respect of

the same actions and against the same

person before the authorities of the

requested Member State;

(c)

where a final judgment has

already been delivered in respect of the

same actions and the same persons by the

authorities of the requested Member State.

(7) In the event of a quality assurance

review or an investigation with cross-border

effects, the competent authorities of the Member

States concerned may address a joint request to

the CEAOB to coordinate the review or

investigation.

(8) In this regulation the term "competent

authority" shall include the Board.".

Regulation 9 of the principal regulations shall be amended Amends

regulation 8 of

as follows

the principal

regulations.

(a)

in sub-regulation (1) thereof, immediately after the

words "other documents held by them," there shall be added the

words "and of inspection or investigation reports relating to the

audits in question,";

(b)

in paragraph (a) of sub-regulation (1) thereof, for

the word "accounts" there shall be substituted the words

"financial statements";

(c)

sub-regulation (2) thereof shall be substituted by

the following

"(2) The working arrangements referred to in sub-

regulation (1)(d) shall at all times ensure that

(a) justification as to the purpose of the

request for audit working papers and other

documents is provided by the competent

authorities;

(b) the persons employed or formerly

employed by the competent authorities of the third-

country that receive the information are subject to

obligations of professional secrecy;

(c) the protection of the commercial

interests of the audited entity, including its

industrial and intellectual property, is not

undermined;

(d) the competent authorities of the third-

country may use audit working papers and other

documents only for the exercise of their functions

of public oversight, quality assurance and

investigation that meet requirements equivalent to

those of Articles 29, 30 and 32 of the Directive;

(e) the request from a competent authority

of a third-country for audit working papers or other

documents held by a statutory auditor or audit firm

can be refused

(i) where the provision of those

working papers or documents would

adversely affect the sovereignty, security or

public order of the European Community or

of the requested Member State; or

(ii) where judicial proceedings have

already been initiated in respect of the same

actions and against the same persons before

the authorities of the requested Member State;

or

(iii) where final judgment has already

been passed in respect of the same actions

and on the same statutory auditor or audit

firms by the competent authorities of the

requested Member State."; and

(d)

sub-regulation (4) thereof shall be substituted by

the following

"(4) The Board shall be empowered to issue

directives on the applicability and proper interpretation of

this regulation and shall also be empowered to lay down

the general adequacy criteria in accordance with which the

Board is to assess whether the competent authorities of

third countries may be recognised as adequate to co-

operate with it on the exchange of audit working papers or

other documents held by statutory auditors and audit firms.

The general adequacy criteria shall be based on the

requirements of article 8 of the Act or essentially

equivalent functional results relating to a direct exchange

of audit working papers or other documents held by

statutory auditors or audit firms.".

Regulation 10 of the principal regulations shall be Substitutes

regulation 10 of

substituted by the following

the principal

regulations.

" Consolidated

10. (1)

In the case of a statutory audit

accounts of

of the consolidated financial statements of a

group of

group of undertakings

undertakings.

(a)

in relation to the consolidated

financial statements, the group auditor

bears the full responsibility for the audit

report referred to in article 179A of the

Companies Act and, where applicable,

article 179B of the Companies Act and for,

where applicable, the additional report to

the audit committee as referred to in

Article 11 of the Audit Regulation;

B

(b)

the group auditor evaluates

the audit work performed by any third-

country auditor(s) or statutory auditor(s)

and third-country audit entity(ies), or audit

firm(s) for the purpose of the group audit,

and documents the nature, timing and

extent of the work performed by those

auditors, including, where applicable, the

group auditor’s review of relevant parts of

those auditors’ audit documentation;

(c)

the group auditor reviews the

audit work performed by the third-country

auditor(s) or statutory auditor(s) and third-

country audit entity(ies) or audit firm(s)

for the purpose of the group audit and

documents it.

The documentation retained by the

group auditor shall be such as to enable the

Board to review the work of the group auditor.

For the purposes of paragraph (c), the

group auditor shall request the agreement of the

third-country auditor(s), statutory auditor(s),

third-country audit entity(ies) or audit firm(s)

concerned to the transfer of relevant

documentation during the conduct of the audit of

consolidated financial statements, as a condition

of the reliance by the group auditor on the work

of those third-country auditor(s), statutory

auditor(s), third-country audit entity(ies) or audit

firms(s).

(2) (a)

Where the group auditor is

unable to comply with sub-regulation (1)(c) he,

she or it shall take appropriate measures and

inform the Board.

(b)

Such measures shall, as

appropriate, include carrying out additional

statutory audit work, either directly or by

outsourcing such tasks, in the relevant

subsidiary.

(3) (a)

Where the group auditor is

subject to a quality assurance review or an

investigation concerning the statutory audit of

the consolidated financial statements of a group

of undertakings, the group auditor shall, when

requested, make available to the Board the

relevant documentation he, she or it retain

concerning the audit work performed by the

respective third-country auditor(s), statutory

auditor (s), third-country audit entity(ies) or

audit firm(s) for the purpose of the group audit,

including any working papers relevant to the

group audit.

(b)

The Board may request

additional documentation on the audit work

performed by any statutory auditor(s) or audit

firm(s) for the purpose of the group audit from

the relevant competent authorities pursuant to

regulation 8.

(c)

Where a parent undertaking or

a subsidiary undertaking of a group of

undertakings is audited by an auditor or

auditor(s) or an audit entity(ies) from a third

country, the Board may request additional

documentation on the audit work performed by

any third country auditor(s) or third country

audit entity(ies) from the relevant competent

authorities from third countries through the

working arrangements referred to in regulation

9. (d)

By way of a derogation from

the paragraph (c), where a parent undertaking or

a subsidiary undertaking of a group of

undertakings is audited by an auditor or auditors

or an audit entity or entities from a third country

that has no working arrangements as referred to

in regulation 9(3)(c), the group auditor shall,

when requested, also be responsible for ensuring

proper delivery of the additional documentation

of the audit work performed by such third-

country auditor(s) or audit entity(ies), including

the working papers relevant to the group audit.

In order to ensure such delivery, the group

auditor shall retain a copy of such

documentation, or alternatively agree with the

third-country auditor(s) or audit entity(ies) that

he, she or it is to be given unrestricted access to

such documentation upon request, or take any

other appropriate action

Provided that where audit working

papers cannot, for legal or other reasons, be

passed from a third country to the group auditor,

the documentation retained by the group auditor

shall include evidence that he or she has

undertaken the appropriate procedures in order

to gain access to the audit documentation, and in

the case of impediments other than legal ones

arising from the legislation of the third country

concerned, evidence supporting the existence of

such impediments.".

Immediately after regulation 10 of the principal

regulations there shall be added the following new regulations

" Cooperation

10A. (1)

In fulfilling its tasks under the

with third-

Audit Regulation, the Board may conclude

country

cooperation agreements on exchange of

authorities and

with

information with the competent authorities of

international

organisations

third countries only if the information disclosed

and bodies.

is subject, in the third countries concerned, to

guarantees of professional secrecy which are at

least equivalent to those set out in Articles 22

and 34 of the Audit Regulation. The Board shall

immediately communicate such agreements to

the CEAOB and notify the Commission of them.

Information shall only be exchanged

under this regulation where such exchange of

information is necessary for the performance of

the tasks of those competent authorities under

the Audit Regulation.

Where such exchange of information

involves the transfer of personal data to a third

country, the Board shall comply with the Data

Protection Act and Directive 95/46/EC and the

CEAOB shall comply with Regulation (EC) No.

45/2001.

(2) The Board shall cooperate with the

competent authorities or other relevant bodies of

third countries regarding the quality assurance

reviews and investigations of statutory auditors

and audit firms. Upon request by a competent

authority, the CEAOB shall contribute to such

cooperation and to the establishment of

supervisory convergence with third countries.

(3) Where the cooperation or exchange of

information relates to audit working papers or

other documents held by statutory auditors or

audit firms the provisions of regulation 9 shall

apply.

(4) The CEAOB shall prepare guidelines

on the content of the cooperation agreements

and exchange of information referred to in this

regulation.

10B. In fulfilling its tasks under the Audit

Disclosure of

information

Regulation, the Board may disclose the

received from

third countries.

confidential

information

received

from

competent authorities of the third countries

where a cooperation agreement so provides, only

if it has obtained the express agreement of the

competent authority which has transmitted the

information and, where applicable, the

information is disclosed only for the purposes

for which that competent authority has given its

agreement, or where such disclosure is required

by European Union or Maltese law.

10C. In fulfilling its tasks under the Audit

Disclosure of

information

Regulation, the Board shall require that

transferred to

third countries.

confidential information communicated by it to

a competent authority of a third country may be

disclosed by that competent authority to third

parties or authorities only with the prior express

agreement of the competent authority which has

transmitted the information, in accordance with

its national law and provided that the

information is disclosed only for the purposes

for which that competent authority of the

Member State has given its agreement, or where

such disclosure is required by European Union

or national law or is necessary for legal

proceedings in that third country.".

The Schedule to the principal regulations shall be

substituted by the following new Schedule

"SCHEDULE

(Regulation 11)

Rules of procedure

1. The title of these rules is the Accountancy Profession

Rules of Procedures.

2. (1)

In these rules

"the Act" means the Accountancy Profession Act;

"the Code" means the Code of Organisation and Civil

Procedure;

"the Directive" means the Accountancy Profession (Annual

Return and Registration Fees) Directive, 2016;

"disciplinary committee" means a disciplinary committee

appointed in terms of article 7(16) of the Act;

"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 meaning

assigned to them in the Act.

3. (1)

Proceedings of the Board or a disciplinary

committee in terms of regulation 11 of the Accountancy Profession

Regulations 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, practicing certificate holder or a firm; or

(c)

following a complaint or information received by

the Board in writing from any person that a warrant holder or

practicing certificate holder is unfit to continue to practice his

profession on the grounds of mental infirmity.

(2) (a)

The Board may determine the form in which a

complaint to the Board is to be made;

(b)

The form shall be made available on the official

website of the Board.

(3) Any complaint or information received shall be submitted

by the Secretary to the Chairman who shall place such complaint or

information on the agenda for consideration by the Board at the next

meeting of the Board.

(4) (a)

The Board may, at its discretion, require the

complaint or information to be confirmed by means of a declaration

under oath by the person making the complaint or providing the

information;

(b)

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.

(5) If, on assessment of the complaint or information received,

the Board reaches the conclusion that the complaint or information

received is

(a)

frivolous or vexatious, the Secretary shall notify by

registered mail such conclusion to the person who submitted the

complaint or information, and the Board shall not proceeded

any further, however the person who submitted the complaint or

information has a right to appeal in terms of article 15A of the

Act;

(b)

admissible, the Board appoints a disciplinary

committee to take cognisance of such proceedings and reference

to the Committee in sub-rules (6) to (11) shall be construed as

references to the disciplinary committee.

(6) A member of the Committee shall in proceedings 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

(7) In the event of a commencement of proceedings, the

Committee shall direct the Secretary to

(a)

serve on the warrant holder, practicing certificate

holder or firm with

(i) a copy of the notice of the initiation of the

proceedings against him or it;

(ii) if applicable, full details of the complaint or

information received;

(iii) if applicable, a copy of the declaration under

oath made in pursuant to sub-rule (4);

(b)

invite the warrant holder, practicing certificate

holder or firm to make submissions in writing which are to

reach the Secretary within a period to be determined by the

Committee, which period shall in no event be less than fifteen

(c)

warn the warrant holder, practicing certificate

holder or firm with the possible outcome of the proceedings

including, if applicable

(i)

the administrative fine that may be imposed;

(ii) the suspension, revocation and withdrawal of

a warrant holder and, or practicing certificate; and

(iii) the listing of the name of the warrant holder,

practicing certificate holder or firm within the list of the

register of default warrant holders and holders of

practicing certificates;

(8) Proceedings of the Committee shall be held in public.

However the Committee may, when it considers it necessary or

expedient, order that the proceedings be held in private.

(9) The Committee shall hold its own procedures. The

(a)

seek clarifications from the complainant, the

person providing the information, the warrant holder, practicing

certificate holder or the representative of the firm to enable a

proper evaluation of the complaint or information received;

(b)

invite the complainant, the person providing the

information, the warrant holder, practicing certificate holder or

the representative of the firm, to make oral submissions to the

Committee;

(c)

request the complainant or the person providing the

information to be confronted with the warrant holder, practicing

certificate holder or the representative of a firm;

(d)

seek expert advice on a complaint or information

(e)

take such action which it deems appropriate in

terms of the Act and directives issued under the Act.

The decision of the Committee shall be rendered in

writing and presented to the Board for its approval.

(b)

The Committee shall indicate

(i)

the infringement committed;

(ii) the reasons upon which such decision was

taken;

(iii) the imposition of an administrative fine, if

any, and the period within which the amount is to be paid;

(iv) the revocation, suspension or withdrawal of

the warrant and or practicing certificate, where applicable;

(v) any conditions attached to such revocation,

suspension or withdrawal, including the listing of the name

of the warrant holder, practicing certificate holder or firm

within the register of warrant holders and holders of

practicing certificates in terms of article 7(4) of the Act;

(c)

The Board may approve or reject the decision of

the Committee, and in the case of rejection must provide the

Committee with its reasons. Nothing shall preclude the Committee

from subsequently re-presenting a revised decision to the Board for

its approval relating to the same matter.

(d)

Following approval by the Board, the decision of

the Committee shall be notified by the Board to the warrant holder,

practicing certificate holder or firm, and the complainant, as the case

may be. The notification to a warrant holder, practicing certificate

holder or firm shall be effected at the last address made known to the

Board in terms of article 5A of the Act and rule 6 of Directive 3.

(11) Any injured party may file an appeal before the Appeals

Tribunal in terms of article 15A of the Act, and article 15C of the Act

shall apply accordingly.

4. (1)

Without prejudice to the powers conferred on the

Board under the Directive, in the event that -

(a)

a decision confirms that an amount is due by the

warrant holder, practicing certificate holder or firm; and, or

(b)

a decision imposes an administrative fine on the

said warrant holder, practicing certificate holder or firm; and

(c)

after 30 days from the date of the notification of the

decision; and

(d)

should it be confirmed that an appeal has not been

filed by any aggrieved person in terms of article 15A of the Act

the Board may on the basis of article 166A of the Code, recover the

amount of the debt which is due together with the costs incurred up to

the final decision, by proceeding with the filing of a judicial letter

which shall be drawn up in the form established under the said article

166A, and serve it upon the warrant holder, practicing certificate

holder or firm concerned.

(2) Where the warrant holder, practicing certificate holder or

firm do not oppose the claim within 30 days from the notification

thereof, the judicial letter shall upon registration in terms of article

166B of the Code, constitute an executive title and the provisions of

Title VII of Part 1 of Book Second of the said Code shall apply’

(3) Where the warrant holder, practicing certificate holder or

firm oppose the claim within 30 days from the notification thereof,

the procedure contemplated under article 166A of the Code shall be

followed.

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

Code, the executive title referred to in sub-regulation (1) shall not be

enforceable before the lapse of fifteen days from the day the said

judicial letter shall constitute an executive title in terms of sub-rule

(2) above.".

B

€1.08