ACCOUNTING PROFESSION (PROVISION OF ACCOUNTANCY SERVICES ON A TEMPORARY AND OCCASIONAL BASIS)

SUBSIDIARY LEGISLATION 281.04

ACCOUNTING PROFESSION

(PROVISION OF ACCOUNTANCY SERVICES

ON A TEMPORARY AND OCCASIONAL BASIS)

REGULATIONS

5th March, 2010

LEGAL NOTICE 112 of 2010, as amendeed by Legal Notice 270 of 2016.

The title of these regulations is the Accountancy

Profession (Provision of Accountancy Services on a Temporary and

Occasional Basis) Regulations.

The objective of these regulations is to provide for rules

specific to the provision of accountancy services, as herein defined,

pursuant to Part II of the Recognition of Professional

Qualifications Regulations and to Title II of the Directive, as herein

defined, and these regulations shall be interpreted and applied

accordingly.

(1)

In these regulations, unless the context otherwise

requires

"accountancy services" means the provision of work and, or the

rendering of services comparable to those listed in regulation 3(2)

of the Regulations;

"the Act" means the Accountancy Profession Act;

"Directive" means Directive 2005/36/EC of the European

Parliam ent and of th e Cou ncil of 7 Sep temb er 200 5 on th e

recognition of professional qualifications;

"the Regulations" means the Accountancy Profession

Regulations issued in terms of the Act; and

"temporary service provider" means any individual, other than a

warrant holder, seeking to provide accountancy services on a

temporary and occasional basis in Malta.

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

regulations which are not defined herein shall have the meaning

assigned to them in the Act.

(1) A temporary service provider shall not be prohibited

from providing accountancy services on a temporary and

occasional basis in Malta, unless he

(a) is legally established in any Member State for the

purpose of performing accountancy services

Provided that where the provision of accountancy

services, or the education and training leading to the

accountancy service, is not regulated in the Member

State in which the temporary service provider is

legally established, the temporary service provider

shall not be prohibited from providing accountancy

services on a temporary and occasional basis in Malta

if he has provided accountancy services in the Member

State in which the temporary service provider is

legally established for at least one year during the ten

years preceding the provision of accountancy services

on a temporary and occasional basis in Malta;

(b) is covered by adequate indemnity insurance in terms

of the Act or regulations issued in terms of the Act;

(c) has the necessary knowledge of the language or

languages necessary for providing accountancy

services in Malta; and

(d) has submitted to the Board a written declaration and

the documentation provided for in regulation 6.

(2) The Board shall ensure that any controls on the language

competency of a temporary service provider are limited to the

knowledge of one official language of Malta, and only carried out

after recognition of the professional qualifications of the temporary

service provider. Controls may be imposed by the Board in cases

where there is a serious and concrete doubt about the sufficiency of

the temporary service provider’s language knowledge in respect of

the accountancy services the temporary service provider intends to

pursue. Any language controls shall be proportionate to the activity

to be pursued, and shall be subject to appeal in accordance with

article 15B of the Act.

(1) The determination of whether accountancy services are

being provided on a temporary and occasional basis in Malta, shall

be assessed b y th e Board by reference to all t he part icular

circumstances of the relevant accountancy services including, but

not limited to, the duration, frequency, regularity and continuity of

the accountancy service to be provided in Malta.

(2) Where the Board determines that accountancy services

shall not be, or are not being, provided on a temporary and

occasional basis by a temporary service provider in Malta, such

temporary service provider shall, upon notification by the Board of

such a determination, be prohibited from providing such

accountancy services unless in possession of a warrant issued in

terms of the Act

Provided that a decision of the Board taken pursuant to this

sub-regulation shall be subject to appeal in terms of article 15B of

the Act.

(3) Where a temporary service provider, notwithstanding being

notified by the Board in terms of sub-regulation (2), provides

accountancy services in Malta, without being in possession of a

warrant, he shall be guilty of an offence and shall, on conviction,

be liable to a fine (multa) of not more than six thousand euro

(€6,000).

(1) A temporary service provider shall, prior to the date of

commencement of the provision of accountancy services in Malta,

submit to the Board, by electronic means or otherwise, a written

declaration in such form as may be determined by the Board from

time to time and made available on the official website of the

Board, setting out the following information

(a) the full name of the temporary service provider;

(b) the full legal address of the temporary service

provider;

(c) details of the accountancy services to be provided in

Malta, including details of the client in Malta;

(d) if applicable, any register in which the temporary

service provider is registered, his registration number,

or equivalent means of identification contained in that

register;

(e) a declaration that the temporary service provider is

covered by adequate indemnity insurance in terms of

the Act or regulations made under the Act;

(f)

the details of any professional association or similar

body with which the temporary service provider is

registered or a member thereof; and

(g) the professional title or designation used, or in the

event that such title or designation does not exist, the

formal qualification of the temporary service provider

and the Member State in which it was awarded.

(2) In addition to the written declaration mentioned in sub-

regulation (1), the temporary service provider shall submit to the

Board the following documents

(a) evidence of the nationality of the temporary service

provider;

(b) an attestation from the relevant body in the Member

State where the temporary service provider is legally

established certifying that the temporary service

provider is so legally established in that Member State

for the purpose of pursuing accountancy services and

the temporary service provider is not prohibited from

providing accountancy services, even temporarily, in

the Member State where he is legally established at the

time of delivery of the written declaration;

(c) in the situation mentioned in the proviso to regulation

4(a), any means of proof that the temporary service

provider has provided accountancy services for at least

one year during the previous ten years;

(d) attestation that the temporary service provider is

covered by adequate indemnity insurance in terms of

the Act or regulations made under the Act; and

(e) evidence of the professional qualification of the

temporary service provider.

(3) Where, due to a material change in the status of the

temporary service provider, the written declaration and, or the

documents being submitted together with such written declaration

no longer reflect such status, the temporary service provider shall

submit to the Board an updated written declaration and, or the

documents reflecting such change in status of the temporary service

provider within fifteen days from the date when such change

occurred.

(4) Where a temporary service provider wishes to provide

accountancy services in the calendar year immediately following

the year in which a written declaration has been submitted, or

resubmitted as the case may be, such written declaration shall be

renewed and resubmitted to the Board

Provided that, in any case, such written declaration shall be

renewed and resubmitted prior to the commencement of the

provision of accountancy services in Malta in that particular year.

Submission of the required declaration by a temporary

service provider in accordance with regulation 6 shall entitle that

temporary service provider to have access to provide accountancy

services in the entire territory of Malta.

(1) A temporary service provider shall, when providing

accountancy services in Malta on a temporary and occasional basis,

be entitled to use the professional title or designation used when

providing accountancy services in the Member State in which he is

legally established, followed by the name and address of the

awarding establishment or examining board.

(2) The professional title or designation shall be indicated in

the official language or one of the official languages of the Member

State where the temporary service provider is legally established

and indicated in such a way as to avoid confusion with the

designation used in Malta.

(3) Where no professional title or designation is used in the

Member State in which the temporary service provider is legally

established, the temporary service provider shall indicate his

formal qualification in the official language or one of the official

languages of that Member State.

A temporary service provider shall, when providing

accountancy services in Malta on a temporary and occasional basis,

furnish the recipient of the accountancy services with the following

information

(a) if applicable, any register in which the temporary

service provider is registered, his registration number,

or equivalent means of identification contained in that

register;

(b) the details of any professional association or similar

body with which the temporary service provider is

registered or a member thereof;

(c) where the provision of accountancy services is subject

to authorisation in the Member State in which the

temporary service provider is legally established, the

details of the competent supervisory authority or

public oversight body;

(d) the professional title or designation used, or in the

event that such title or designation does not exist, the

formal qualification of the temporary service provider

and the Member State in which it was awarded;

(e) the VAT identification number referred to in Council

Directive 77/388/EEC of the temporary service

provider; and

(f)

the details of the indemnity insurance cover

maintained by the temporary service provider in terms

of the Act.

(1) The Board shall cooperate with the competent

authorities of the Member States in which temporary service

providers are legally established to carry out the responsibilities

arising from these regulations and the Recognition of Professional

Qualifications Regulations.

(2) The Board shall provide the competent authorities of the

Member States in which temporary service providers are legally

established with the information necessary to ensure that

complaints against a temporary service provider made by clients in

Malta are correctly pursued. The Board shall further ensure that the

recipients are informed of the outcome of the complaint.

(3) The Board may, following receipt of the written declaration

mentioned in regulation 6, ask the competent authorities of the

Member States in which temporary service providers are legally

established for, inter alia, information relevant to the legality of the

establishment of the temporary service provider and his good

conduct, as well as the absence of any disciplinary or criminal

sanctions of a professional nature

Provided that where, on the basis of the information

provided by the competent authorities of the Member States in

which temporary service providers are legally established, the

Board is of the opinion that the provision of accountancy services

by such temporary service provider is prejudicial to the interests of

r e c i p i e n t s , th e B o a r d m a y, by n ot i c e t o hi m , p r oh i b it s u c h

temporary service provider from providing accountancy services in

Malta

Provided further that the provisions of regulation 5(3) shall,

mutatis mutandis, apply to a temporary service provider who,

notwithstanding notification in terms of this sub-regulation,

continues to provide accountancy services in Malta

Provided further that a decision of the Board taken pursuant

to this sub-regulation shall be subject to appeal in terms of article

15B of the Act.

A temporary service provider providing accountancy

services on a temporary and occasional basis in Malta shall adhere

to any directives or guidelines regulating the professional conduct

of warrant holders and practising certificate holders, code of ethics,

standards of competency and integrity and independence to be kept

by the profession.

(1) A temporary service provider shall be prohibited by

the Board from providing accountancy services in Malta where,

following an enquiry held by a disciplinary committee appointed

under article 7(16) of the Act, the temporary service provider has

been found guilty of

(a) a contravention of these regulations; or

(b) a contravention of the directives or guidelines

regulating the professional conduct of warrant holders

and practising certificate holders, code of ethics,

standards of competency and integrity and

independence to be kept by the profession mentioned

in regulation 10.

(2) A decision of the Board taken pursuant to regulation 5(2)

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

The provisions of these regulations shall apply mutatis

mutandis to any work or service required or permitted by any law

to be provided or rendered by an auditor

Provided that this regulation shall not apply to statutory

audits.