ASIC Corporations (Qualified Accountant) Instrument 2016/786
About this compilation
Compilation No. 1
This is a compilation of ASIC Corporations (Qualified Accountant) Instrument 2016/786 as in force on 29 October 2021. It includes any commenced amendment affecting the legislative instrument to that date.
This compilation was prepared by the Australian Securities and Investments Commission.
The notes at the end of this compilation (the endnotes) include information
about amending instruments and the amendment history of each amended provision.
Contents
Part 1—Preliminary
1 Name of legislative instrument
3 Authority
4 Definitions
Part 2—Declaration
5 Persons who are qualified accountants
Endnotes
Endnote 1—Instrument history
Endnote 2—Amendment history
Part 1—Preliminary
1 Name of legislative instrument
This is the ASIC Corporations (Qualified Accountant) Instrument 2016/786.
3 Authority
This instrument is made under subsection 88B(2) of the Corporations Act 2001.
4 Definitions
In this instrument:
Act means the Corporations Act 2001.
eligible foreign professional body means each of the following:
(a) American Institute of Certified Public Accountants;
(b) Association of Chartered Certified Accountants (United Kingdom);
(c) Canadian Institute of Chartered Accountants;
(d) The Institute of Chartered Accountants in England and Wales;
(e) The Institute of Chartered Accountants in Ireland;
(f) The Institute of Chartered Accountants of Scotland.
Part 2—Declaration
5 Persons who are qualified accountants
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:
(i) is entitled to use the post-nominals “CPA” or “FCPA”; and
(ii) is subject to CPAA’s continuing professional education requirements; and
(iii) at or about the time of the member’s most recent renewal of membership, has confirmed in writing to CPAA that he or she complies with CPAA’s continuing professional education requirements;
(b) any member of Chartered Accountants Australia and New Zealand (CA ANZ) who:
(i) is entitled to use the post-nominals “CA” or “FCA”; and
(ii) is subject to CA ANZ’s continuing professional education requirements; and
(iii) at or about the time of the member’s most recent renewal of membership, has confirmed in writing to CA ANZ that he or she complies with CA ANZ’s continuing professional education requirements;
(c) any member of the Institute of Public Accountants (IPA) who:
(i) is entitled to use the post-nominals “AIPA”, “MIPA”, or “FIPA”; and
(ii) is subject to the IPA’s continuing professional education requirements; and
(iii) at or about the time of the member’s most recent renewal of membership, has confirmed in writing to the IPA that he or she complies with the IPA’s continuing professional education requirements;
(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 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.
Endnotes
Endnote 1—Instrument history
Instrument number | Date of FRL registration | Date of commencement | Application, saving or transitional provisions |
2016/786 | 29/9/2016 (see F2016L01541) | 29/9/2016 | |
2021/868 | 28/10/2021 (see F2021L01472) | 29/10/2021 | - |
Endnote 2—Amendment history
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Section 2 | rep. s48D LA |
Subparagraph 5(b)(i) | am. 2021/868 |
Overview
The ASIC Corporations (Qualified Accountant) Instrument 2016/786 was enacted to provide a comprehensive framework for identifying qualified accountants under the Corporations Act 2001. This legislative instrument was developed under subsection 88B(2) of the Corporations Act by the Australian Securities and Investments Commission (ASIC). The main objective of this instrument is to ensure clarity and consistency in recognising qualified accountants, which is essential for maintaining the integrity and reliability of financial reporting and corporate governance in Australia. The instrument addresses a gap by clearly defining the qualifications and requirements for various professional bodies, including local and international accounting organisations, to be recognised as qualified accountants for the purposes of the Act.
This instrument establishes that members of specified professional bodies, including CPA Australia, Chartered Accountants Australia and New Zealand, the Institute of Public Accountants, and eligible foreign professional bodies, qualify as accountants if they meet certain criteria such as having relevant post-nominals, fulfilling continuing professional education requirements, and in some cases, having a specified level of practical experience. The inclusion of international professional bodies ensures that Australian corporations can leverage the expertise of qualified accountants globally, thereby enhancing the quality of financial oversight and compliance. The instrument was designed to streamline the recognition process and provide a transparent criterion for determining qualified accountants, ultimately supporting the policy objective of safeguarding investor interests and promoting fair and efficient markets.
Scope and Application
The ASIC Corporations (Qualified Accountant) Instrument 2016/786 provides the criteria for individuals to be recognised as qualified accountants under the Corporations Act 2001. This instrument applies to specific categories of members from various professional accounting bodies, including CPA Australia, Chartered Accountants Australia and New Zealand, the Institute of Public Accountants, and members of eligible foreign professional bodies. These members must meet certain conditions, such as holding particular post-nominals, adhering to continuing professional education requirements, and confirming compliance with those requirements in writing. The instrument delineates a geographic scope that encompasses Australia and its territories, with a particular focus on the professional qualifications and experience of accountants involved in the certification processes outlined in the Act. Notably, it does not explicitly exclude any groups or circumstances, although its focus is on specific professional bodies and their members. The instrument’s application can be extended or modified through subordinate legislation, thereby providing flexibility in how it is implemented and enforced within the broader legislative framework.
Key Provisions
The ASIC Corporations (Qualified Accountant) Instrument 2016/786, under the Corporations Act 2001, specifies the criteria for determining qualified accountants within the scope of Australian corporate regulations. The operative sections of this instrument (sections 5 and 4) delineate the categories of accountants recognised as qualified under the Act. Specifically, section 5 identifies members of various professional bodies who meet certain conditions, including continuing professional education requirements and the use of specific post-nominals, as qualified accountants.
The instrument imposes several obligations on the parties it governs. Members of professional bodies such as CPA Australia (CPAA), Chartered Accountants Australia and New Zealand (CA ANZ), the Institute of Public Accountants (IPA), and eligible foreign professional bodies must meet certain criteria to be recognised as qualified accountants. These criteria include adherence to continuing professional education requirements and, in some cases, the submission of written confirmation that they comply with these requirements. Additionally, members of eligible foreign professional bodies must have at least three years of practical experience in accounting or auditing and provide a certificate to a person resident in the same country as the member.
The Act outlines consequences for non-compliance with the specified criteria for qualified accountants. While the instrument does not explicitly detail offences, penalties, or civil/criminal consequences, it can be inferred that failure to meet the outlined requirements might render an accountant unqualified to perform certain duties under the Corporations Act 2001. Such non-compliance could potentially lead to legal ramifications for the individual or corporate entity involved, though the specific penalties are not detailed within this instrument. The overarching legal framework, including the Corporations Act 2001, would need to be consulted for a comprehensive understanding of the penalties and consequences associated with non-compliance.