(b) require the Institute to have rules governing membership, discipline, and other matters and a code of ethics governing the professional conduct of its members; and

(d) provide for related matters; and

(e) repeal the New Zealand Society of Accountants Act 1958

Title paragraph (a): amended, on 7 July 2010, by section 4 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

1 Short Title and commencement

(1) This Act may be cited as the New Zealand Institute of Chartered Accountants Act 1996.
(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 shall come into force on a date to be appointed by the Governor-General by Order in Council.
Section 1(3): section 21(3) and (4) brought into force, on 5 April 2002, by the Institute of Chartered Accountants of New Zealand Act Commencement Order 2002 (SR 2002/51).
Section 1(1): amended, on 7 July 2010, by section 5(2) of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

2 Interpretation

In this Act, unless the context otherwise requires,—
Appeals Council means the Appeals Council referred to in section 6(1)(h)
certificate of public practice means a certificate of public practice issued in accordance with the rules
chartered accountant means a member of the Institute who, under the rules of the Institute, is entitled to use the designation chartered accountant
code means the code of ethics of the Institute referred to in section 7
Council means the Council of the Institute referred to in section 6(1)(a)
disciplinary body or body means the Disciplinary Tribunal or the Appeals Council
Disciplinary Tribunal means the Disciplinary Tribunal referred to in section 6(1)(g)
document includes any book or paper
Institute means the New Zealand Institute of Chartered Accountants constituted under this Act
member means a person who, under the rules of the Institute, is a full member or provisional member of the Institute
Professional Conduct Committee means the Professional Conduct Committee referred to in section 6(1)(f)
Registrar means the Registrar of Companies at Wellington
registration means registration by the Registrar on a public file
rules means the rules of the Institute delivered to the Registrar under section 6
Society means the New Zealand Society of Accountants constituted under the New Zealand Society of Accountants Act 1958.
Section 2 Institute: amended, on 7 July 2010, by section 6 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

3 Act to bind the Crown

This Act binds the Crown.

New Zealand Institute of Chartered Accountants

Heading: substituted, on 7 July 2010, by section 7 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

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, on 7 July 2010, by section 8 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

5 Functions of Institute

The functions of the Institute are—
- (a) to promote quality, expertise, and integrity in the profession of accountancy by its members in New Zealand:
- (b) to promote, control, and regulate 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.

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
- (c) the summoning and holding of general meetings of the Institute, and the method of voting at those meetings; and
- (d) a President and 1 or more Vice Presidents of the Institute; and
- (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
- (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 Council must, no later than 14 days after the passing of any amendment to the rules or replacing the rules, deliver to the Registrar for registration a copy of the amendment or the new rules.

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 Council.
(3) The Council must, no later than 14 days after the day on which this Act comes into force, deliver a copy of the code to the Registrar for registration.
(4) The Council may at any time amend the code or revoke the code and replace it with a new code.
(5) The Council must, no later than 14 days after passing any amendment to the code or replacing the code, deliver to the Registrar for registration a copy of the amendment or the new code.

8 Application of Regulations (Disallowance) Act 1989 to certain rules and code of ethics

The Regulations (Disallowance) Act 1989 applies to—
- (a) the rules that relate to the matters referred to in sections 5(d), 6(1)(a), (b), and (f) to (j), and 19; and
- (b) rules that relate to the entitlement of members to use the designation chartered accountant; and
- (c) the code of ethics required by section 7—
as if they were regulations within the meaning of that Act.

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 of the Crimes Act 1961.

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 Summary Proceedings Act 1957.

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 summary conviction to a fine not exceeding $5,000.

15 Accountants and auditors must be qualified

(1) Subject to subsection (3), every person commits an offence who describes himself or herself or holds himself or herself out publicly as an accountant or auditor unless that person is suitably qualified in accordance with subsection (2) to offer accounting or auditing services to the public.
(2) For the purposes of this section, a person is suitably qualified if that person holds a certificate, degree, diploma, registration, or similar qualification, whether obtained in New Zealand or elsewhere, that is relevant to the practices of accounting and auditing.
(3) Nothing in this section prevents—
- (a) any person who is not offering his or her services to the public as an accountant or auditor or under any similar designation from the use of such a designation in respect of or in relation to his or her salaried employment or occupation:
- (b) any person from practising publicly and describing himself or herself as a secretary, bookkeeper, or cost consultant, or under any other designation not associated with or conveying the impression that he or she is an accountant or auditor:
- (c) any person or member of a club, institution, or association which is not carried on with a view to profit from acting as auditor of the club, institution, or association:
- (d) any Minister of the Crown or officer charged with the administration of any law or the Controller and Auditor-General from appointing, or authorising or approving the appointment of, any person as auditor in respect of any undertaking.
(4) Every person who commits an offence against this section is liable on summary conviction to a fine not exceeding $5,000.

16 Failure to comply with summons of disciplinary body

(1) Every person summoned under section 11 to attend a hearing of a disciplinary body commits an offence if he or she, without sufficient cause, does any or all of the following:
- (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 summary conviction to a fine not exceeding $1,000.

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, to conduct the practice of a chartered accountant in public practice who is a sole practitioner.
(2) Every power of attorney given in accordance with the provisions of the New Zealand Society of Accountants Amendment Act 1968 and in force immediately before the day on which subsection (1) comes into force shall be deemed to have been given in accordance with that subsection and Schedule 1 of this Act.

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, on 7 July 2010, by section 9 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).

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) who, under the rules, is entitled to hold that office, perform that function, exercise that power, or act in that capacity.

20 Fees payable to Registrar

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.

21 Fidelity fund

(1) [Repealed]
(2) [Repealed]
(3) Subsections (1) and (2) are hereby repealed.
(4) Schedule 2 and the enactments specified in Schedule 3 are hereby repealed.
Section 21(1): repealed, on 5 April 2002, by section 21(3).
Section 21(2): repealed, on 5 April 2002, by section 21(3).

22 Transitional provision relating to disciplinary proceedings

The New Zealand Society of Accountants Act 1958 shall, notwithstanding its repeal by section 24, continue to apply in respect of any complaint made, and any disciplinary proceedings commenced, under that Act before the commencement of this Act.

23 Amendments to other Acts

The enactments specified in Schedule 4 are hereby amended in the manner indicated in that schedule.

24 Repeals

The enactments specified in Schedule 5 are hereby repealed.

s 17(1)

1 Interpretation

(1) In this schedule,—
administrator has the meaning given to it by section 4 of the Administration Act 1969
agent means a chartered accountant in public practice appointed under clause 2 to conduct the practice of a sole practitioner; and includes a substitute appointed under clause 4
appointor means a person who has given a power of attorney under this schedule
chartered accountant in public practice means a chartered accountant who for the time being holds a certificate of public practice issued under the rules
manager has the meaning given to it by section 2 of the Protection of Personal and Property Rights Act 1988
representative of a sole practitioner means—
- (a) an administrator of the estate of a sole practitioner; or
- (b) a manager of the practice of a sole practitioner
sole practitioner means a chartered accountant in public practice without a partner or partners.
(2) In this schedule, a reference to conducting the practice of a chartered accountant includes operating the bank account or accounts relating to that practice.

2 Appointment of agent

(1) Subject to the provisions of this schedule, a sole practitioner or the representative of a sole practitioner may appoint 1 or more chartered accountants in public practice to conduct the sole practitioner’s practice in the sole practitioner’s name.
(2) A sole practitioner or representative of a sole practitioner must not appoint an agent to conduct the practice of the sole practitioner if—
- (a) an agent has already been appointed in respect of that practice; and
- (b) the powers of that agent have been suspended under clause 7.

3 Consent to appointment

The appointment of an agent may be made only with the consent of the agent and, in the case of an appointment by an administrator, may be made only with the consent of the Council.

4 Form and conditions of appointment

(1) The appointment of an agent—
- (a) must be by a power of attorney in a form approved by the Council; and
- (b) if 2 or more persons are appointed agents, must state whether they are appointed jointly and severally or otherwise; and
- (c) may authorise the agent to appoint 1 or more chartered accountants in public practice as a substitute for that agent.
(2) All the provisions of this schedule apply to a substitute appointed by an agent under this clause as if that substitute had been the agent originally appointed under clause 2.

5 Term of appointment

(1) The appointment of any agent by a sole practitioner, or by a manager of a sole practitioner’s practice, must be for 1 or more of the following periods:
- (a) any period during which the sole practitioner is incapacitated and unable to conduct his or her practice:
- (b) any period during which the sole practitioner is absent from New Zealand:
- (c) a period from the death of the sole practitioner until the earlier of the following:
  - (i) an administrator of the estate of the sole practitioner revokes the appointment:
  - (ii) 1 year after the grant of administration in the estate of the sole practitioner.
(2) The appointment of an agent by an administrator of the estate of a sole practitioner shall continue until the administrator revokes the appointment.

6 Cessation of agent’s powers

(1) The powers of an agent cease on the earlier of the following:
- (a) the revocation of the appointment:
- (b) the expiry of the term of the appointment:
- (c) the sole practitioner, in respect of whose practice the powers have been given, commencing practice with any other chartered accountant or chartered accountants.
(2) The powers of an agent do not cease by reason only of the sole practitioner, in respect of whose practice the agent has been appointed, dying or becoming mentally disordered.

7 Suspension of powers of agent

(1) The manager of the practice of a sole practitioner may, at any time, suspend the powers of an agent to conduct the practice of the sole practitioner.
(2) A manager may revoke any suspension by him or her under subclause (1).
(3) A manager shall, as soon as practicable, give the agent notice in writing of the suspension or revocation.

8 Obligations of agents

(1) An agent must not act until—
- (a) he or she has given a certified copy of the power of attorney to the Institute; and
- (b) the Council, or a committee of the Council authorised by the Council for this purpose, has resolved to permit the agent to act under that power of attorney.
(2) If an agent ceases to act as such, the agent and his or her appointor (if living) must, as soon as practicable, give the Institute notice in writing of the agent ceasing to act.
(3) Notice to the Institute under this clause may be given to an officer or employee of the Institute authorised to accept notice for this purpose.

9 Fees, etc

(1) Every agent acting under a power of attorney given under this Act must pay all fees payable in accordance with the rules of the Institute, all contributions and levies to the fidelity fund, and all other amounts for which the sole practitioner would have been liable if he or she had continued to practise as a chartered accountant in public practice.
(2) While all such fees, contributions, levies, and amounts are being paid in respect of any sole practitioner who has died, the provisions of the Act and the rules shall apply in respect of that sole practitioner as if he or she were living and practising as a chartered accountant in public practice.

10 Notice to Commissioner of Inland Revenue in certain cases

[Repealed]
Schedule 1 clause 10: repealed, on 24 May 1999, by section 15(1) of the Estate Duty Repeal Act 1999 (1999 No 64).

11 Miscellaneous provisions

(1) The provisions of this schedule apply notwithstanding the provisions of the Property Law Act 2007 or any other enactment or rule of law.
(2) Every enactment and rule of law applies to any agent or any agency under this schedule, except to the extent that the enactment or rule of law has been modified by this schedule.
(3) Nothing in this schedule prevents—
- (a) the lawful disposal of the practice of a sole practitioner; or
- (b) a chartered accountant granting a power of attorney otherwise than under this schedule.
Schedule 1 clause 11(1): amended, on 1 January 2008, by section 364(1) of the Property Law Act 2007 (2007 No 91).

s 21

[Repealed]

Schedule 2: repealed, on 5 April 2002, by section 21(4).

s 21(4)

New Zealand Society of Accountants Amendment Act 1963 (1963 No 139) (RS Vol 5, p 902)