Fourth

Session, 46th General Assembly

Elizabeth II, 2011

BILL 4

AN ACT TO AMEND THE

PUBLIC

ACCOUNTANTS ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

HARRY HARDING

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would provide that

chartered accountants, certified general accountants and certified management

accountants licensed to perform public accountancy under the Public Accountants Act would be subject

to disciplinary proceedings under the Chartered

Accountants Act, 2008 , the Certified

General Accountants Act, 2008 or the Certified

Management Accountants Act respectively related to misconduct arising from

the practice of public accountancy. Currently they are subject to disciplinary

proceedings under the Public Accountants

Act with respect to misconduct as public accountants.

A BILL

AN ACT TO AMEND THE PUBLIC

ACCOUNTANTS ACT

Analysis

1. S.3 Amdt.

Board incorporated

S.7 Amdt.

By-laws

Ss.22 & 23 R&S

Definitions

Ss.25 to 38 R&S

25. Certified general

accountants

26. Certified management

accountants

27. Chartered accountants

S.39 R&S

Action prohibited

S.40 Amdt.

Regulations

7. Consequential

Amdt.

8. Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2009 cP-35.1

1. Subsection 3(1) of the Public Accountants Act is amended by striking out the word

"Accountancy" and substituting the word "Accountants".

(1) Subparagraph 7(1)(f)(

i) of the Act

is repealed and the following substituted:

(

i) a definition of "professional misconduct"

and "conduct unbecoming" for the purpose of paragraph 22(c),

(2) Paragraph 7(1)(

g) of the Act is repealed.

3. Sections 22 and 23 of the Act are repealed and

the following substituted:

Definitions

22. In

this

section and sections 24, 25, 26 and 27,

(a) "allegation" means a written

document alleging that a person has engaged in conduct deserving of sanction;

(b) "complainant" means a person making

an allegation described in

section 24;

(c) "conduct deserving of sanction"

includes

(

i) professional misconduct,

(ii) professional incompetence,

(iii) conduct unbecoming a public accountant,

(iv) incapacity or unfitness to practise as a

public accountant, and

(

v) acting in breach of this Act, the regulations

or the code of ethics made under

section 7; and

(d) "respondent" means a public

accountant or former public accountant, a corporation to which sections 13 to 20

apply or a former corporation against whom an allegation is made.

4. Sections 25 to 38 of the Act are repealed and

the following substituted:

Certified general

accountants

(1) Where

an allegation filed under

section 24 relates to a respondent who is a member of

the Certified General Accountants Association of Newfoundland and Labrador, the

registrar shall refer it to the registrar of the association.

(2) Sections 30 to 45 of the Certified General Accountants Act, 2008 apply, with the necessary

changes, to an allegation referred to the registrar of the association under

subsection (1) as if it was an allegation filed under

section 29 of that Act.

(3) In subsection

(1), "member" includes a corporation to which sections 18 to 25 of

the Certified General Accountants Act,

2008 apply, and a former corporation.

Certified management

accountants

(1) Where

an allegation filed under

section 24 relates to a respondent who is a member of

the Society of Certified Management Accountants of Newfoundland and Labrador,

the registrar shall refer it to the registrar of the society.

(2) Sections 28 to 43 of the Certified Management Accountants Act apply, with the necessary

changes, to an allegation referred to the registrar of the society under

subsection (1) as if it was an allegation filed under

section 27 of that Act.

(3) In subsection (1), "member" includes

a corporation to which sections 16 to 23 of the Certified Management Accountants Act apply, and a former corporation.

Chartered accountants

(1) Where

an allegation filed under

section 24 relates to a respondent who is a member of

the Institute of Chartered Accountants of Newfoundland and Labrador, or a

registered public accountant, the registrar shall refer it to the registrar of

the institute.

(2) Sections 30 to 45 of the Chartered Accountants Act, 2008 apply, with the necessary changes,

to an allegation referred to the registrar of the institute under subsection

(1) as if it was an allegation filed under

section 29 of that Act.

(3) Where an allegation relates to a registered

public accountant, he or she is considered to be a respondent for the purpose

of sections 30 to 45 of the Chartered

Accountants Act, 2008.

(4) In subsection (1), "member" includes

a corporation to which sections 18 to 25 of the Chartered Accountants Act, 2008 apply, and a former corporation.

Section 39 of the Act is repealed and the

following substituted:

Action prohibited

39. An

action for damages shall not lie against the board or the individual members of

the board, the registrar, or an officer or employee of the board for

(

a) an act or failure to act, or a proceeding

initiated or carried out in good faith under this Act, or carrying out their

duties or obligations as an officer, employee or member under this Act; or

(

b) for a decision made in good faith under this

Act.

6. (1) Paragraphs 40(1)(f), (

g) and (

h) of

the Act are repealed.

(2) Subsection 40(2) of the Act is repealed.

Consequential

Amdt.

(1) The Certified General Accountants Act, 2008 is amended by adding

immediately after

section 27 the following:

Authority with

respect to an allegation

27.1 The

registrar, the complaints authorization committee, a person acting on behalf of

the complaints authorization committee and a disciplinary panel have the same

authority with respect to an allegation referred under

section 25 of the Public Accountants Act as they have with

respect to an allegation referred to in

section 29 of this Act.

(2) Section 28 of the Certified General Accountants Act, 2008 is amended by adding immediately after

subsection (4) the following:

(4.1) At least one of the certified general

accountants appointed by the board under subsection (4) shall be licensed as a

public accountant under the Public

Accountants Act .

(3) Section 32 of the Certified General Accountants Act, 2008 is amended by adding immediately after

subsection (2) the following:

(3) Where a complaint that is referred to an

adjudication tribunal involves an allegation that was referred to the registrar

of the association under

section 25 of the Public

Accountants Act , one of the certified general accountants shall be licensed

as a public accountant under the Public

Accountants Act .

(4) The Certified

Management Accountants Act is amended by adding immediately after

section

25 the following:

Authority with

respect to an allegation

25.1 The

registrar, the complaints authorization committee, a person acting on behalf of

the complaints authorization committee and a disciplinary panel have the same

authority with respect to an allegation referred under

section 25 of the Public Accountants Act as they have with

respect to an allegation referred to in

section 27 of this Act.

(5) Section 26 of the Certified Management Accountants Act is amended by adding

immediately after subsection (4) the following:

(4.1) At least one of the certified management

accountants appointed by the board under subsection (4) shall be licensed as a

public accountant under the Public

Accountants Act .

(6) Section 30 of the Certified Management Accountants Act is amended by adding

immediately after subsection (2) the following:

(3) Where a complaint that is referred to an

adjudication tribunal involves an allegation that was referred to the registrar

of the society under

section 25 of the Public

Accountants Act , one of the certified management accountants shall be

licensed as a public accountant under the Public

Accountants Act .

(7) The Chartered

Accountants Act, 2008 is amended by adding immediately after

section 27 the

following:

Authority with

respect to an allegation

27.1 The

registrar, the complaints authorization committee, a person acting on behalf of

the complaints authorization committee and a disciplinary panel have the same

authority with respect to an allegation referred under

section 25 of the Public Accountants Act as they have with

respect to an allegation referred to in

section 29 of this Act.

(8) Section 28 of the Chartered Accountants Act, 2008 is amended by adding immediately after

subsection (4) the following:

(4.1) At least one of the chartered accountants

appointed by the board under subsection (4) shall be licensed as a public

accountant under the Public Accountants

Act .

(9) Section 32 of the Chartered Accountants Act, 2008 is amended by adding immediately

after subsection (3) the following:

(3) Where a complaint that is referred to an

adjudication tribunal involves an allegation that was referred to the registrar

of the institute under

section 25 of the Public

Accountants Act , one of the chartered accountants shall be licensed as a

public accountant under the Public

Accountants Act .

Commencement

8. This Act comes into force on the day the Public Accountants Act comes into force.

William E.

Parsons, Queen's Printer