ASIC Class Order [CO 01/1256]
Qualified accountant
This instrument was made under s ubsection 88B(2) of the Corporations Act 2001.
This compilation was prepared on 4 October 2005 taking into account amendments up to [CO 04/173].
Prepared by the Australian Securities and Investments Commission.
Australian Securities and Investments Commission
Corporations Act 2001 — Subsection 88B(2) — Declaration
Under subsection 88B(2) of the Corporations Act 2001 (the “Act”), the Australian Securities and Investments Commission hereby declares that all persons in the following classes of members of the following professional bodies are qualified accountants for the purposes of the Act:
(a) any member of CPA Australia (“CPAA”) who is entitled to use the post-nominals “CPA” or “FCPA”, and is subject to and complies with CPAA's continuing professional education requirements;
(b) any member of The Institute of Chartered Accountants in Australia (“ICAA”) who is entitled to use the post-nominals “CA”, “ACA” or “FCA”, and is subject to and complies with ICAA's continuing professional education requirements;
(c) any member of the National Institute of Accountants (“NIA”) who is entitled to use the post-nominals “PNA”, “FPNA”, “MNIA” or “FNIA”, and is subject to and complies with the NIA's continuing professional education requirements; and
(d) any member of an eligible foreign professional body who:
(i) has at least 3 years of practical experience in accounting or auditing; and
(ii) is providing a certificate for the purposes of paragraph 708(8)(c) or paragraph 761G(7)(c) of the Act to a person who is resident in the same country (being a country other than Australia) as that member.
Interpretation
In this instrument “eligible foreign professional body” means each of the following:
(a) American Institute of Certified Public Accountants;
(b) Association of Certified Chartered Accountants (United Kingdom);
(c) Canadian Institute of Chartered Accountants;
(d) Institute of Chartered Accountants of New Zealand;
(e) The Institute of Chartered Accountants in England and Wales;
(f) The Institute of Chartered Accountants in Ireland;
(g) The Institute of Chartered Accountants of Scotland.
Notes to ASIC Class Order [CO 01/1256]
Note 1
ASIC Class Order [CO 01/1256] (in force under s ubsection 88B(2) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the Tables below.
Table of Instruments
Instrument number | Date of making or FRLI registration | Date of commencement | Application, saving or transitional provisions |
[CO 01/1256] | 11/10/2001 | 11/10/2001 | - |
[CO 01/1468] | 5/11/2001 | 5/11/2001 | - |
[CO 04/173] | 2/3/2004 | 2/3/2004 | - |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Para (c) | am. [CO 01/1468] |
Para (d) | ad. [CO 04/173] |
Interpretation | ad. [CO 04/173] |
Overview
The ASIC Class Order [CO 01/1256], enacted in 2001, aims to clarify and define the qualifications of accountants who can provide certain financial services under the Corporations Act 2001. This legislation was introduced to address the need for a clear understanding of who is authorised to act as a qualified accountant within the scope of the Act, ensuring that individuals providing these services meet specific professional standards and continuing education requirements. The Australian Securities and Investments Commission (ASIC) is the enacting body, with the policy objective of maintaining high professional standards in the financial sector to protect investors and the public interest. The Class Order identifies qualified accountants by specifying the professional bodies and the requisite post-nominals, as well as the continuing education obligations that must be met.
Scope and Application
ASIC Class Order [CO 01/1256], made under subsection 88B(2) of the Corporations Act 2001, delineates the qualifications and conditions under which members of certain professional accounting bodies are recognised as qualified accountants for the purposes of the Act. This recognition applies to members of CPA Australia, The Institute of Chartered Accountants in Australia, and the National Institute of Accountants, provided they meet specific post-nominal and continuing professional education requirements. Additionally, members of specified eligible foreign professional bodies who meet particular experience and certification criteria are also recognised as qualified accountants. This Class Order applies across Australia and is integral to ensuring that the individuals designated as qualified accountants meet the requisite professional standards. The recognition is contingent upon compliance with the professional bodies' continuing education mandates and other stipulated conditions. The Class Order extends its application through amendments and subordinate instruments, which have refined the initial provisions to incorporate new requirements and additional eligible foreign professional bodies.
Key Provisions
The ASIC Class Order [CO 01/1256] made under subsection 88B(2) of the Corporations Act 2001 (the "Act") sets out which members of professional bodies are qualified accountants for the purposes of the Act. The operative sections (subsection 88B(2)) declare that members of specific professional bodies who meet certain criteria are qualified accountants. Specifically, members of CPA Australia (CPAA) who use the post-nominals "CPA" or "FCPA" and comply with CPAA's continuing professional education requirements are qualified (section 1(a)). Similarly, members of The Institute of Chartered Accountants in Australia (ICAA) who use the post-nominals "CA", "ACA", or "FCA" and comply with ICAA's continuing professional education requirements are qualified (section 1(b)). Members of the National Institute of Accountants (NIA) who use the post-nominals "PNA", "FPNA", "MNIA", or "FNIA" and comply with NIA's continuing professional education requirements are also qualified (section 1(c)). Additionally, members of eligible foreign professional bodies who have at least 3 years of practical experience in accounting or auditing and are providing a certificate to a person resident in the same country as the member are qualified (section 1(d)).
The obligations imposed by the Act on the parties it governs include membership in the specified professional bodies and adherence to the continuing professional education requirements of those bodies. Members of CPAA, ICAA, and NIA must maintain their membership status and comply with the respective bodies' continuing professional education requirements to retain their qualification as accountants under the Act. For members of eligible foreign professional bodies, the obligation is to have at least three years of practical experience and provide a certificate to a person resident in the same country as the member. Failure to meet these obligations could result in the loss of qualification as a qualified accountant under the Act.
The Act does not explicitly state offences, penalties, or consequences for breach in the Class Order itself. However, any breach of the Act's provisions regarding the qualifications of accountants could lead to enforcement actions by the Australian Securities and Investments Commission (ASIC). These actions could include administrative penalties, fines, or legal proceedings, depending on the nature and severity of the breach. The maximum penalties would be determined by the relevant sections of the Corporations Act 2001 that the Class Order supports, which could include fines up to a significant amount and potential imprisonment for serious offences. The specific penalties would depend on the exact breach and the court's discretion in imposing sanctions.