New Zealand Institute of Chartered Accountants Act 1996

1: Short Title and commencement
1: This Act may be cited as the New Zealand Institute of Chartered Accountants
2: Except as provided in subsection (3), this Act shall come into force on 1 October 1996.
3: Subsections (3) and (4) of section 21
4: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 1(3) brought into force 5 April 2002 clause 2 Institute of Chartered Accountants of New Zealand Act Commencement Order 2002 Section 1(1) amended 7 July 2010 section 5(2) New Zealand Institute of Chartered Accountants Amendment Act 2010 Section 1(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
2: Interpretation
In this Act, unless the context otherwise requires,— Appeals Council section 6(1)﻿(h) certificate of public practice chartered accountant code section 7 Council section 6(1)﻿(a) disciplinary body body Disciplinary Tribunal section 6(1)﻿(g) document Executive Board section 6(1)﻿(e) Institute New Zealand Institute of Chartered Accountants member Professional Conduct Committee section 6(1)﻿(f) Registrar registration rules section 6 Society New Zealand Society of Accountants Act 1958 specified association section 8A Section 2 Executive Board inserted 25 November 2014 section 4 New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 2 Institute amended 7 July 2010 section 6 New Zealand Institute of Chartered Accountants Amendment Act 2010 Section 2 specified association inserted 25 November 2014 section 4 New Zealand Institute of Chartered Accountants Amendment Act 2014
2A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA Section 2A inserted 25 November 2014 section 5 New Zealand Institute of Chartered Accountants Amendment Act 2014
3: Act to bind the Crown
This Act binds the Crown. New Zealand Institute of Chartered Accountants Heading substituted 7 July 2010 section 7 New Zealand Institute of Chartered Accountants Amendment Act 2010
4: Continuation of Society as Institute
1: The body corporate existing under the name of the New Zealand Society of Accountants immediately before the day on which this section comes into force continues on and after that day under the name New Zealand Institute of Chartered Accountants
2: The Institute is a body corporate with perpetual succession and a common seal, and has and may exercise all the rights, powers, and privileges, and may incur all the liabilities and obligations, of a natural person of full age and capacity.
3: The Institute shall have members in accordance with the rules and this Act; but membership does not of itself—
a: impose on the members any liability in respect of any contract, debt, or other obligation made or incurred by the Institute; or
b: confer on the members any right, title, or interest in the property of the Institute. Section 4(1) amended 7 July 2010 section 8 New Zealand Institute of Chartered Accountants Amendment Act 2010
5: Functions of Institute
The functions of the Institute are—
aa: to carry out the duty imposed under section 5A
a: to promote quality, expertise, and integrity in the profession of accountancy by its members in New Zealand:
b: to promote the profession of accountancy by its members in New Zealand:
c: to promote the training, education, and examination of persons practising, or intending to practise, the profession of accountancy in New Zealand or elsewhere:
d: any other functions that are conferred on it by the rules. Section 5(aa) inserted 25 November 2014 section 6(1) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 5(b) replaced 25 November 2014 section 6(2) New Zealand Institute of Chartered Accountants Amendment Act 2014
5A: Duty to control and regulate profession of accountancy practised by members in New Zealand
1: The Institute must, with reasonable skill and care, control and regulate the practice of the profession of accountancy by its members in New Zealand.
2: The duty under subsection (1) includes—
a: maintaining, complying with, monitoring compliance with, and enforcing the rules referred to in section 6(1)﻿(f) to (ja)
b: maintaining, monitoring members' compliance with, and enforcing professional and ethical standards, including the code of ethics required by section 7
c: monitoring members' compliance with the Auditor Regulation Act 2011
d: monitoring compliance with, and enforcing, section 14
e: complying with the Institute's duties—
i: as an accredited body under the Auditor Regulation Act 2011
ii: that are imposed on the Institute (by name) under any other enactment. Section 5A inserted 25 November 2014 section 7 New Zealand Institute of Chartered Accountants Amendment Act 2014
5B: Institute must perform duty to control and regulate profession but may delegate other functions
1: The Institute must not delegate the duty under section 5A
2: The Institute may delegate the functions specified in section 5(a), (b), (c), and (d) section 5A
3: Subsection (2) is subject to subsection (1). Section 5B inserted 25 November 2014 section 7 New Zealand Institute of Chartered Accountants Amendment Act 2014
5C: Specified association may act in its own interests rather than Institute's interests
1: This section applies to the specified association if any functions referred to in section 5B(2)
2: The specified association may, when performing a delegated function, act in a manner that the association believes is in the best interests of the association (or its members) even though it may not be in the best interests of the Institute (or the Institute's members).
3: Subsection (2) does not permit the specified association to act in a manner that may materially prejudice the Institute's ability to carry out the duty imposed under section 5A Section 5C inserted 25 November 2014 section 7 New Zealand Institute of Chartered Accountants Amendment Act 2014
6: Rules of Institute
1: The Institute must have rules that provide for—
a: a Council of the Institute and the powers of the Council; and
b: the admission of members of the Institute and the cessation of membership; and
ba: the entitlement of members to use the designation chartered accountant; and
c: the summoning and holding of general meetings of the Institute, and the method of voting at those meetings; and
d:
e: an Executive Board of the Institute; and
f: a Professional Conduct Committee to investigate complaints against members and former members of the Institute and the powers and procedure of that Committee; and
g: a Disciplinary Tribunal to hear complaints and matters referred to it by the Professional Conduct Committee and the powers and procedure of that Tribunal; and
h: an Appeals Council to hear appeals from decisions of the Disciplinary Tribunal and the powers and procedure of that Council; and
i: the kinds of conduct, including criminal offences, professional misconduct, and financial misconduct, for which a member or former member may be disciplined; and
j: the actions that may be taken in respect of, and the penalties that may be imposed on, a member or former member by the Professional Conduct Committee or a disciplinary body for such conduct; and
ja: the recognition of persons for the purposes of sections 36(1)﻿(a) 36C
jb: the powers of a person to whom functions are delegated under section 5B(2)
k: the amendment and replacement of the rules.
2: In addition to the provisions required by subsection (1), the rules may contain any other provisions that are not inconsistent with this Act or any other Act or any rule of law.
3: The Council must, no later than 14 days after the day on which this Act comes into force, deliver to the Registrar for registration a document described as, and which shall constitute, the rules of the Institute.
4: The Executive Board
5: Rules under this section (except for rules under subsection (1)﻿(c), (e), or (jb)) are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication It is not required to be published LA19 s 73(2) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 6(1)﻿(ba) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 6(1)﻿(d) repealed 25 November 2014 section 8(1) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 6(1)﻿(ja) inserted 1 July 2015 section 8(2) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 6(1)﻿(jb) inserted 1 July 2015 section 8(2) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 6(4) amended 25 November 2014 section 8(3) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 6(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
7: Code of ethics
1: The Institute must always have a code of ethics that governs the professional conduct of its members.
2: The code of ethics must be prescribed by the Executive Board
3:
4: The Executive Board
5: The Executive Board
6: The code of ethics prescribed by the Council and that is in force immediately before the commencement of this subsection continues in force and may be amended, revoked, or replaced by the Executive Board under subsection (4).
7: The code of ethics is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication It is not required to be published LA19 s 73(2) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 7(2) amended 25 November 2014 section 9(1) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 7(3) repealed 25 November 2014 section 9(2) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 7(4) amended 25 November 2014 section 9(1) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 7(5) amended 25 November 2014 section 9(1) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 7(6) inserted 25 November 2014 section 9(3) New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 7(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
7A: Membership rules may require membership of specified association
1: The rules that relate to the matters referred to in section 6(1)﻿(b)
a: that a person may be admitted as a member of the Institute only if the person is a member of the specified association:
b: that a person ceases to be a member of the Institute if the person—
i: does not become a member of the specified association in accordance with the rules; or
ii: ceases to be a member of the specified association.
2: Those rules may provide for a cessation referred to in subsection (1)﻿(b) to be automatic or to occur after a specified process.
3: This section does not limit section 6(1)﻿(b) Section 7A inserted 25 November 2014 section 10 New Zealand Institute of Chartered Accountants Amendment Act 2014
8: Application of Part 3 of Legislation Act 2012 to certain rules and code of ethics
Section 8 repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Provisions concerning specified association Heading inserted 25 November 2014 section 12 New Zealand Institute of Chartered Accountants Amendment Act 2014
8A: Specified association
1: The Governor-General may, by Order in Council made on the recommendation of the Minister of Commerce, declare an association of accountants to be the specified association for the purposes of this Act.
2: The Minister of Commerce may make a recommendation under subsection (1) only after consulting the Institute.
3: In this section, association of accountants
4: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 8A inserted 25 November 2014 section 12 New Zealand Institute of Chartered Accountants Amendment Act 2014 Section 8A(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
8B: Members of Council or Executive Board may act in best interests of specified association rather than Institute
1: This section applies to a person ( A
a: the Council:
b: the Executive Board.
2: A may, when exercising powers or performing duties as a member of the Council or the Executive Board, if expressly permitted to do so by the rules of the Institute, act in a manner that he or she believes is in the best interests of the specified association (or its members) even though it may not be in the best interests of the Institute (or the Institute's members).
3: Subsection (2) does not permit A to act in a manner that may materially prejudice the Institute's ability to carry out the duty imposed under section 5A Section 8B inserted 25 November 2014 section 12 New Zealand Institute of Chartered Accountants Amendment Act 2014 Matters relating to disciplining of members
9: Professional Conduct Committee and disciplinary bodies to observe rules of natural justice
In the exercise of their functions and powers, the Professional Conduct Committee and each disciplinary body shall observe the rules of natural justice.
10: Evidence at hearings of disciplinary bodies
1: A disciplinary body may—
a: receive evidence on oath (and for that purpose an officer or employee of the Institute, or a member of the disciplinary body, may administer an oath); and
b: permit a person appearing as a witness before it to give evidence by tendering a written statement and verifying that statement by oath.
2: A hearing before a disciplinary body is a judicial proceeding for the purposes of section 109
11: Disciplinary bodies may summon witnesses
1: A District Court Judge may, on the application of a party to proceedings before a disciplinary body, give a certificate authorising the disciplinary body to issue a summons under this section.
2: A District Court Judge shall not give a certificate under subsection (1) unless satisfied that—
a: the evidence of the witness is or may be material to the hearing of a matter by the disciplinary body; and
b: it is necessary or desirable that the summons be issued to compel the attendance of the witness at the hearing.
3: A disciplinary body shall, on production of a certificate referred to in subsection (1), issue a summons in writing, signed by a member of the disciplinary body, requiring a person specified in the summons to attend a hearing of the disciplinary body at the time and place specified in the summons and do all or any of the following at the hearing:
a: give evidence:
b: give evidence under oath:
c: produce documents, things, or information or any specified documents, things, or information in the possession or control of that person that are relevant to the hearing.
4: A disciplinary body may require that any documents or information produced under this section be verified by oath, statutory declaration, or otherwise.
5: A disciplinary body may—
a: require that copies of any documents or information produced under this section must also be provided to any person appearing at the hearing; and
b: impose any terms and conditions in respect of the provision of copies of any documents or information to a person appearing at the hearing and the use that may be made of them.
6: A summons may be served—
a: by delivering it to the person summoned; or
b: by posting it to the person summoned at that person’s usual place of residence.
7: A summons must,—
a: if it is to be served under subsection (6)﻿(a), be served at least 24 hours before the attendance of the witness is required:
b: if it is to be served under subsection (6)﻿(b), be served at least 10 days before the attendance of the witness is required.
8: A summons that is posted shall be treated as having been served when it would have been served in the ordinary course of post.
9: There shall be paid or tendered to the witness by the person requiring the attendance of the witness at the time the summons is served, or at some other reasonable time before the hearing, the sum estimated to be payable to that witness for fees, allowances, and expenses in accordance with the scales for the time being prescribed by regulations under the Criminal Procedure Act 2011 Section 11(9) amended 1 July 2013 section 413 Criminal Procedure Act 2011
12: Protection for members of disciplinary bodies and others
1: No action shall lie against a member of the Professional Conduct Committee or a disciplinary body in exercising, in good faith, any power or function under this Act or the rules.
2: Every person who—
a: provides documents, things, or information to the Professional Conduct Committee; or
b: produces documents or things to a disciplinary body; or
c: gives evidence or answers questions at a hearing of a disciplinary body— has the same privileges as witnesses have in a court.
3: Every counsel appearing before a disciplinary body has the same privileges and immunities as counsel in a court.
13: Enforcement of orders
1: Where the Professional Conduct Committee or a disciplinary body, acting in accordance with this Act or the rules, makes an order or otherwise exercises any power in respect of any person who is or was a member of the Institute, that order or other exercise of any power has effect whether or not that person remains a member of the Institute.
2: Where the Professional Conduct Committee or a disciplinary body, acting in accordance with this Act or the rules, orders any person who is or was a member of the Institute to pay a penalty, expenses, or other monetary amount to the Institute, that amount is recoverable by the Institute from that person as a debt due to the Institute, whether or not that person remains a member of the Institute. Offences
14: Improper use of terms implying membership of Institute
1: Every person commits an offence who,—
a: not being a member of the Institute, uses in connection with his or her business, employment, or profession any written words, initials, or abbreviations of words intended to cause or which may reasonably cause any other person to believe that the person is a member of the Institute; or
b: not being entitled to do so under the rules, describes himself or herself in writing as a chartered accountant or a chartered accountant in public practice or an associate chartered accountant or an associate chartered accountant in public practice or an accounting technician; or
c: not being a member of the Institute, describes himself or herself in writing as a registered accountant, unless it is proved that the manner and circumstances in which the description was given were such as to raise no reasonable inference that it was referring to membership of the Institute; or
d: not being entitled to do so under the rules, uses in connection with his or her name, or with the name under which he or she carries on business, the initials CA, ACA, FCA, FACA, CA (PP), ACA (PP), or AT or an abbreviation of the words chartered accountant, associate chartered accountant, registered accountant, or accounting technician, or any combination of any such initials or abbreviations, unless it is proved that the manner and circumstances in which the initials or abbreviations were used were such as to raise no reasonable inference that they were referring to membership of the Institute.
2: Every person who commits an offence against subsection (1) is liable on Section 14(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
15: Accountants and auditors must be qualified
Section 15 repealed 1 July 2015 section 13 New Zealand Institute of Chartered Accountants Amendment Act 2014
16: Failure to comply with summons of disciplinary body
1: Every person summoned under section 11
a: fails to attend in accordance with the summons:
b: does not give evidence when required to do so:
c: does not give evidence under oath when required to do so:
d: does not answer any question that is lawfully asked by the disciplinary body:
e: does not provide any documents, things, or information the summons requires that person to provide.
2: A person summoned to attend a hearing of a disciplinary body shall not be convicted of an offence against subsection (1) of this section unless witnesses expenses are paid or tendered to that person in accordance with section 11(9)
3: Every person who commits an offence against this section is liable on Section 16(3) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Appointment of agent to conduct practice of sole practitioner
17: Agent may be appointed to conduct sole practitioner’s practice
1: Notwithstanding any other enactment or rule of law, an agent may be appointed, in accordance with the provisions of Schedule 1
2: Every power of attorney given in accordance with the provisions of the New Zealand Society of Accountants Amendment Act 1968 Schedule 1 Miscellaneous provisions
18: References to Society
Every reference to the Society in any enactment or document shall, unless the context otherwise requires, be read as a reference to the Institute.
18A: References to Institute of Chartered Accountants of New Zealand
A reference in an enactment or in a document to the Institute of Chartered Accountants of New Zealand must, unless the context otherwise requires, be read as a reference to the New Zealand Institute of Chartered Accountants. Section 18A inserted 7 July 2010 section 9 New Zealand Institute of Chartered Accountants Amendment Act 2010
19: References to chartered accountants
Every reference in any enactment to a—
a: chartered accountant; or
b: chartered accountant in public practice; or
c: chartered accountant who holds a certificate of public practice,— in relation to the holding of any office (including the office of auditor), the performance of any function, the exercise of any power, or acting in any particular capacity, shall, unless the context otherwise requires, be read as a reference to a chartered accountant (within the meaning of section 2
20: Fees payable to Registrar
1: The Governor-General may from time to time, by Order in Council, make regulations prescribing fees payable to the Registrar for registration of documents under this Act.
2: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 20(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
21: Fidelity fund
Section 21 repealed 25 November 2014 section 14 New Zealand Institute of Chartered Accountants Amendment Act 2014
22: Transitional provision relating to disciplinary proceedings
Section 22 repealed 25 November 2014 section 14 New Zealand Institute of Chartered Accountants Amendment Act 2014
23: Amendments to other Acts
Section 23 repealed 25 November 2014 section 14 New Zealand Institute of Chartered Accountants Amendment Act 2014
24: Repeals
Section 24 repealed 25 November 2014 section 14 New Zealand Institute of Chartered Accountants Amendment Act 2014