New Zealand Institute of Chartered Accountants Amendment Act 2014

1: Title
This Act is the New Zealand Institute of Chartered Accountants Amendment Act 2014.
2: Commencement
1: This Act comes into force on a date appointed by the Governor-General by Order in Council; and 1 or more orders may be made bringing different provisions into force on different dates.
2: To the extent that it has not previously been brought into force under subsection (1), the rest of this Act comes into force on 1 April 2017. Section 2(1) brought into force 25 November 2014 New Zealand Institute of Chartered Accountants Amendment Act 2014 Commencement Order 2014 Section 2(1) brought into force 1 July 2015 New Zealand Institute of Chartered Accountants Amendment Act 2014 Commencement Order 2015
3: Principal Act
This Act amends the New Zealand Institute of Chartered Accountants Act 1996 principal Act OIC LI 2014/351 2014-11-25 New Zealand Institute of Chartered Accountants Act 1996 comes into force on 25 November 2014 by LI 2014/351 except for sections 8(2), 11 and 13. OIC LI 2015/116 2015-07-01 New Zealand Institute of Chartered Accountants Act 1996 Sections 8(2), 11, 13 into force on 1 July 2015 by LI 2015/116/2
4: Section 2 amended (Interpretation)
In section 2 Executive Board specified association section 8A
5: New section 2A inserted (Transitional, savings, and related provisions)
After section 2
2A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA
6: Section 5 amended (Functions of Institute)
1: Before section 5(a)
aa: to carry out the duty imposed under section 5A
2: Replace section 5(b)
b: to promote the profession of accountancy by its members in New Zealand:
7: New sections 5A to 5C inserted
After section 5
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) (which relate to the investigation and hearing of complaints and other matters, appeals, disciplinary matters, and the recognition of auditors); and
b: maintaining, monitoring members' compliance with, and enforcing professional and ethical standards, including the code of ethics required by section 7; and
c: monitoring members' compliance with the Auditor Regulation Act 2011 and other enactments that relate to the practice of accountancy; and
d: monitoring compliance with, and enforcing, section 14; and
e: complying with the Institute's duties—
i: as an accredited body under the Auditor Regulation Act 2011; and
ii: that are imposed on the Institute (by name) under any other enactment.
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) (except to the extent that those functions relate to the duty in section 5A
3: Subsection (2) is subject to subsection (1).
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
8: Section 6 amended (Rules of Institute)
1: Repeal section 6(1)﻿(d)
2: After section 6(1)﻿(j)
ja: the recognition of persons for the purposes of sections 36(1)﻿(a) and 36C
jb: the powers of a person to whom functions are delegated under section 5B(2)
3: In section 6(4) Council Executive Board
9: Section 7 amended (Code of ethics)
1: In section 7(2), (4), and (5) Council Executive Board
2: Repeal section 7(3)
3: After section 7(5)
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).
10: New section 7A inserted (Membership rules may require membership of specified association)
After section 7
7A: Membership rules may require membership of specified association
1: The rules that relate to the matters referred to in section 6(1)﻿(b) (admission of members and the cessation of membership) may provide for either or both of the following:
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) (and, in particular, the ability to provide for other requirements for the admission of members).
11: Section 8 amended (Application of Part 3 of Legislation Act 2012 to certain rules and code of ethics)
In section 8(a) (j) (jb)
12: New sections 8A and 8B and cross-heading inserted
After section 8 Provisions concerning specified association
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
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
13: Section 15 repealed (Accountants and auditors must be qualified)
Repeal section 15
14: Sections 21 to 24 and Schedules 3 to 5 repealed
Repeal sections 21 to 24 Schedules 3 to 5
15: New Schedule inserted
Before Schedule 1 Schedule
16: Schedule 1 amended
In Schedule 1 Council Executive Board