(1) An accredited body may, on an application made by a natural person, issue a licence to the person if the accredited body is satisfied that the person—

• (a) meets the prescribed minimum standards; and

• (b) is otherwise a fit and proper person to hold a licence.

(2) The application must be accompanied by payment of the prescribed registration fee (which the accredited body must either send to the Registrar under section 13(1)(c) or refund to the applicant if the licence is not issued).

(1) The FMA may, on an application made by a natural person, issue a licence to the person if the FMA is satisfied that—

• (a) the person is an overseas auditor; and

• (b) the person meets the prescribed minimum standards; and

• (c) the person is required, under the law or the regulatory requirements of the person's home jurisdiction, to comply with requirements for maintaining the person's ongoing competence, and that those requirements are equivalent to, or as satisfactory as, the requirements under section 17; and

• (e) the person's practice is subject to review arrangements that are equivalent to, or as satisfactory as, the quality review arrangements under subpart 5; and

• (ea) the systems, policies, and procedures of the person's practice are satisfactory in terms of—

  • (i) promoting compliance with the requirements imposed by or under Parts 1 to 3 and other enactments that relate to the conduct of issuer audits; and

  • (ii) promoting compliance with auditing and assurance standards; and

  • (iii) otherwise promoting reasonable care, diligence, and skill in the carrying out of issuer audits; and

• (f) the person is otherwise a fit and proper person to hold a licence.

(2) In subsection (1), home jurisdiction, in relation to a person, means the country, state, or territory outside New Zealand in which the person is—

• (a) ordinarily resident; and

• (b) entitled to act as an auditor.

(3) Applications under subsection (1) must be—

• (a) made in the manner that is specified by the FMA; and

• (b) accompanied by payment of the prescribed fee for the application (if any); and

• (c) accompanied by payment of the prescribed registration fee (which the FMA must either send to the Registrar under section 13(1)(c) or refund to the applicant if the licence is not issued).

(4) Every applicant under subsection (1) must provide to the FMA the information that is required by the FMA to assist it in determining the application.

(5) This section does not prevent a licence from being issued to an overseas auditor under section 10.

(1) Every person who holds a licence under section 11 must give written notice to the FMA of any relevant change within 10 working days after the person first became aware of the change.

(2) In this section, relevant change—

• (a) means, in relation to a person, a change in the circumstances of the person that result in the person no longer—

  • (i) being an overseas auditor; or

  • (ii) meeting the prescribed minimum standards; or

  • (iii) being required to comply with the requirements referred to in section 11(1)(c); and

• (b) includes any change that may be prescribed.

(3) Every person who fails to comply with this section commits an offence and is liable on summary conviction to a fine not exceeding $10,000.

(1) An accredited body or the FMA must, after issuing a licence to a person, send to the Registrar notification of the issue of the licence together with—

• (a) the relevant information referred to in section 32(1); and

• (b) any other prescribed information; and

• (c) the prescribed registration fee.

(2) After receiving the notification and information under subsection (1), the Registrar must enter the relevant information in respect of the licence and the licensed auditor in the register.

(1) A licence issued to a person by an accredited body or the FMA—

• (a) must be subject to any applicable conditions of the kinds prescribed under section 24(1)(b)(i); and

• (b) may be subject to any other conditions of a kind prescribed under section 24(1)(b)(ii) that the accredited body or the FMA thinks fit; and

• (c) must specify a condition relating to the kinds of issuer audits in respect of which the person is authorised to act under the licence.

(2) The condition under subsection (1)(c) may specify that the person is authorised to act in respect of all kinds of issuer audits.

(3) The accredited body or the FMA may, at any time after the licence is issued, vary, remove, add to, or substitute any conditions of the licence.

(4) The accredited body or the FMA must not exercise a power referred to in subsection (3) unless—

• (a) the accredited body or the FMA gives the licensed auditor at least 10 working days' written notice of the following matters before it exercises the power:

  • (i) that the accredited body or the FMA may exercise a power under subsection (3); and

  • (ii) the reasons why it is considering exercising that power; and

• (b) the accredited body or the FMA gives the licensed auditor or his or her representative an opportunity to make written submissions on the matter within that notice period.

The FMA must, in considering what conditions to impose under section 14(1)(c) in respect of an overseas auditor, have regard to any limitations on the overseas auditor's ability to act in respect of an audit that are imposed by or in relation to any certificate, registration, licence, or other authorisation that entitles the overseas auditor to act as an auditor in a country, state, or territory outside New Zealand.

(1) A licence must specify the date of its expiry (the expiry date).

(2) The expiry date must not be later than 5 years after the date of the issue of the licence.

(3) A licence continues in force until the close of the expiry date unless sooner suspended or cancelled under Parts 1 to 3.

(4) If a licensed auditor applies for a new licence before the expiry date of an existing licence that the new licence is intended to supersede, and the application is not disposed of before the expiry date, the existing licence continues in force until the application is disposed of.

(1) An accredited body must, in accordance with the requirements prescribed under section 24(1)(c),—

• (a) require its members to complete competence programmes to maintain their ongoing competence; and

• (b) otherwise promote, monitor, and review the ongoing competence of its members.

(2) Every member must comply with the requirements under subsection (1)(a).

(3) Any competence programme may require a member to do 1 or more of the following, within the period, or at the intervals, prescribed in the programme:

• (a) pass an examination or assessment (or both):

• (b) complete a period of practical training:

• (c) complete a period of practical experience:

• (d) undertake a course of studies:

• (e) anything else that the accredited body considers appropriate.

(1) If any member who is required to complete a competence programme does not satisfy the requirements of the programme, the accredited body may—

• (a) vary, remove, add to, or substitute any conditions of the member's licence under section 14; or

• (b) suspend the member's licence under section 20.

(2) This section does not limit sections 14 and 20.

(1) A relevant authority may cancel a licence issued to a person—

• (a) if the person, by written notice, requests that the relevant authority do so; or

• (b) if the relevant authority is satisfied on reasonable grounds that—

  • (i) the person has died; or

  • (ii) the person obtained the licence by making a false or misleading representation or declaration (whether oral or written); or

  • (iii) the person does not satisfy, or no longer satisfies, the prescribed minimum standards; or

  • (iv) the person has failed to comply with a condition of the licence; or

  • (v) the person has failed to comply with section 12, 75(3), or 76(3); or

  • (vi) the person is otherwise not a fit and proper person to hold a licence; or

• (c) if the relevant authority is satisfied on reasonable grounds that 1 or more issuer audits carried out by the person are not being, or have not been, carried out—

  • (i) in accordance with Parts 1 to 3 or any other enactment that relates to the conduct of an issuer audit; or

  • (ii) in accordance with auditing and assurance standards; or

  • (iii) otherwise with reasonable care, diligence, and skill.

(2) In this section and sections 20 and 21, relevant authority means,—

• (a) in the case of a licence issued under section 10, either or both of the following:

  • (i) the accredited body that issued the licence:

  • (ii) a disciplinary body in accordance with subsection (3); or

• (b) in the case of a licence issued under section 11, the FMA.

(3) The rules of an accredited body may authorise a disciplinary body to act under this section or section 20 and provide for any other reasonable matters, not inconsistent with Parts 1 to 3, in respect of the exercise of that power to act.

(4) A licence may also be—

• (a) treated as cancelled under section 52:

• (b) cancelled by the FMA under subpart 5 or 6.

(1) A relevant authority may suspend a licence issued to a person if the relevant authority is satisfied on reasonable grounds—

• (a) that the person—

  • (i) has failed to comply with a condition of the licence; or

  • (ii) has failed to comply with section 12, 75(3), or 76(3); or

  • (iii) has not satisfied the requirements of a competence programme that he or she is required to complete (in the case of a licence issued under section 10) or has failed to comply with the requirements referred to in section 11(1)(c) (in the case of a licence issued under section 11); or

• (b) that 1 or more issuer audits carried out by the person are not being, or have not been, carried out—

  • (i) in accordance with Parts 1 to 3 or any other enactment that relates to the conduct of an issuer audit; or

  • (ii) in accordance with auditing and assurance standards; or

  • (iii) otherwise with reasonable care, diligence, and skill.

(2) A suspension under subsection (1) is for the period that the relevant authority thinks fit or until the person satisfies any requirements specified by the relevant authority.

(3) If a person's licence is suspended, the person is not a licensed auditor during the period for which the licence is suspended (but this does not prevent the Registrar from including information in the register in relation to the person).

(4) At the end of the period of suspension, the person's licence is immediately revived (unless there is some other ground to suspend or cancel the licence).

(5) A licence may also be—

• (a) treated as suspended under section 52:

• (b) suspended by the FMA under subpart 5 or 6.

(1) A relevant authority must not cancel a licence under section 19(1)(b)(ii) to (vi) or (c) or suspend a licence under section 20(1) unless—

• (a) the relevant authority gives the licensed auditor at least 10 working days' written notice of the following matters before it exercises the power:

  • (i) that the relevant body may cancel or suspend the licence; and

  • (ii) the reasons why it is considering exercising that power; and

• (b) the relevant authority gives the licensed auditor or his or her representative an opportunity to make written submissions and to be heard on the matter within that notice period.

(2) The relevant authority must give notice of the cancellation or suspension to—

• (a) the licensed auditor; and

• (b) the Registrar.

(3) The notice given to the licensed auditor must include a statement of the grounds for the cancellation or suspension.

(1) This section applies if—

• (a) a person's licence is cancelled or suspended; and

• (b) the person is acting, or has been appointed to act, as the auditor in respect of an issuer audit at the time that the licence is cancelled or suspended.

(2) The FMA may, on an application made under subsection (3), authorise the person whose licence is cancelled or suspended to act, or to continue to act, as the auditor in respect of the issuer audit referred to in subsection (1)(b).

(2A) The FMA may act under subsection (2) only if the FMA is satisfied that the issuer audit will be carried out—

• (a) in accordance with—

  • (i) Parts 1 to 3 and any other enactment that relates to the conduct of the issuer audit; and

  • (ii) auditing and assurance standards; and

• (b) otherwise with reasonable skill, diligence, and care.

(3) An application—

• (ab) may be made only by the issuer in respect of the issuer audit referred to in subsection (1)(b); and

• (a) must otherwise be made in the manner that is specified by the FMA; and

• (b) must be accompanied by payment of the prescribed fee for the application (if any).

(4) The authorisation may be subject to the terms and conditions that the FMA thinks fit.

(5) A person who acts, or continues to act, as the auditor in respect of an issuer audit in accordance with the terms and conditions of an authorisation does not commit an offence under section 8.

(1) A person may appeal to a District Court against any decision of an accredited body or the FMA to—

• (a) decline to issue a licence to the person; or

• (b) include conditions under section 14(1)(b) or (c) on the person's licence or proposed licence (or to act under section 14(3)); or

• (c) suspend or cancel his or her licence; or

• (d) decline to act on an application made by the person under section 22 (or to include terms and conditions on an authorisation following such an application); or

• (e) issue a direction to the person under subpart 5; or

• (f) make any other order under subpart 5 or 6 in respect of the person.

(2) A person may appeal to a District Court against any decision of a disciplinary body to cancel or suspend his or her licence unless the rules of the accredited body provide for an appeal against the decision to a body established to hear appeals against the decision (for example, the Appeals Council referred to in section 6(1)(h) of the New Zealand Institute of Chartered Accountants Act 1996).

(3) An appeal to a District Court under this section must be brought—

• (a) in accordance with the rules of court; and

• (b) within 20 working days after notice of the decision is communicated to the appellant, or within any further time a District Court Judge allows on application made before or after the period expires.

(1) An accredited body may, on an application made by an audit firm that is a partnership, authorise the Registrar to register the audit firm if the accredited body is satisfied that—

• (a) 1 or more of the partners of the firm are licensed auditors; and

• (b) the firm meets the prescribed minimum standards.

(2) A limited partnership may not apply under subsection (1) (and may not be a registered audit firm).

(3) The application must be accompanied by payment of the prescribed registration fee (which the accredited body must either send to the Registrar under section 23C(1)(c) or refund to the audit firm if it is not registered).

(1) The FMA may, on an application made by an overseas audit firm, authorise the Registrar to register the audit firm if the FMA is satisfied that—

• (a) 1 or more of the partners of the firm are licensed auditors; and

• (b) the firm is subject to review arrangements that are equivalent to, or as satisfactory as, the quality review arrangements under subpart 5; and

• (c) the systems, policies, and procedures of the firm are satisfactory in terms of—

  • (i) promoting compliance with the requirements imposed by or under Parts 1 to 3 and other enactments that relate to the conduct of issuer audits; and

  • (ii) promoting compliance with auditing and assurance standards; and

  • (iii) otherwise promoting reasonable care, diligence, and skill in the carrying out of issuer audits; and

• (d) the firm meets the prescribed minimum standards.

(2) A limited partnership may not apply under subsection (1) (and may not be a registered audit firm).

(3) The application must be accompanied by payment of the prescribed registration fee (which the FMA must either send to the Registrar under section 23C(1)(c) or refund to the audit firm if it is not registered).

(1) An accredited body or the FMA (as the case may be) must, after deciding to authorise the registration of an audit firm, send to the Registrar notification of that decision together with—

• (a) the relevant information referred to in section 32(1A); and

• (b) any other prescribed information; and

• (c) the prescribed registration fee.

(2) After receiving the notification and information under subsection (1), the Registrar must register the audit firm and enter the relevant information in respect of the registration in the register.

(3) For the purposes of this subpart, the relevant body, in respect of a registered audit firm, is the accredited body or the FMA (as the case may be) that gave the notification under subsection (1).

(1) The registration of an audit firm is subject to any conditions that the relevant body thinks fit.

(2) The relevant body may, at any time after the audit firm is registered, vary, remove, add to, or substitute any conditions of registration.

(1) The relevant body may give notice to the Registrar to cancel the registration of a registered audit firm if the relevant body is satisfied on reasonable grounds that the audit firm—

• (a) no longer has at least 1 partner who is a licensed auditor; or

• (ab) obtained the registration by making a false or misleading representation or declaration (whether oral or written); or

• (b) no longer meets the prescribed minimum standards; or

• (c) has failed to comply with a condition of its registration; or

• (d) has failed to comply with a direction issued under subpart 5; or

• (e) has failed to comply with section 76A(6).

(2) After receiving the notification under subsection (1), the Registrar must—

• (a) cancel the registration of the audit firm; and

• (b) give written notice of the cancellation to the audit firm.

The relevant body must not exercise a power referred to in section 23D(2) or 23E unless—

• (a) the relevant body gives the audit firm (or at least 1 of the partners of the firm) at least 10 working days' written notice of the following matters before it exercises the power:

  • (i) that the relevant body may exercise a power under section 23D(2) or 23E (as the case may be); and

  • (ii) the reasons why it is considering exercising that power; and

• (b) the relevant body gives the audit firm or a representative of the audit firm an opportunity to make written submissions on the matter within that notice period.

(1) An audit firm may appeal to a District Court against any decision of an accredited body or the FMA to—

• (a) decline to authorise the registration of the firm; or

• (b) include conditions under section 23D on the firm's registration (or to act under section 23D(2)); or

• (c) give notice to the Registrar to cancel the firm's registration.

(2) An appeal to a District Court under this section must be brought—

• (a) in accordance with the rules of court; and

• (b) within 20 working days after notice of the decision is communicated to the appellant, or within any further time a District Court Judge allows on application made before or after the period expires.

(1) The FMA may, by notice in the Gazette,—

• (a) prescribe the minimum standards for licensing (including standards relating to required competence, qualifications, and experience) that a person must meet in order to be issued with a licence by an accredited body or the FMA; and

• (b) prescribe the kinds of conditions to which licences—

  • (i) must be subject; and

  • (ii) may be subject if the accredited body or the FMA thinks fit; and

• (c) prescribe requirements for ongoing competence that must be complied with by persons who are issued with a licence under section 10; and

• (ca) prescribe the minimum standards for registration of an audit firm that an audit firm must meet in order to be registered as a registered audit firm; and

• (d) prescribe the minimum standards for accreditation (including standards relating to the adequacy and effectiveness of audit regulatory systems) that a person must meet in order to be granted accreditation by the FMA; and

• (e) prescribe the procedure that accredited bodies must follow when performing regulatory functions; and

• (f) prescribe transitional requirements for the purposes of subpart 3 of Part 3 (including requirements relating to required competence, qualifications, and experience and, in the case of audit firms, requirements relating to the firm's systems, policies, and procedures).

(2) Matters prescribed under subsection (1) may—

• (a) have general or specific application:

• (b) differ according to differences in time or circumstance.

(1) A notice under section 24 may prescribe minimum standards for licensing in any way the FMA thinks fit, including in 1 or more of the following ways:

• (a) by requiring a degree or diploma or certificate of a stated kind recognised by the FMA:

• (b) by requiring the successful completion of a degree, course of studies, or programme recognised by the FMA:

• (c) by requiring a pass in a specified examination or any other assessment:

• (d) by reference to registration with, a licence issued by, or other authorisation from an overseas organisation:

• (e) by requiring experience in the provision of services of a particular kind:

• (f) by requiring a certain level of competence.

(2) The FMA may recognise any overseas qualification, certificate, registration, or licence as satisfying a particular minimum standard for licensing (in whole or in part) if, in the opinion of the FMA, that overseas qualification, certificate, registration, or licence is equivalent to, or as satisfactory as, the standard, or part of the standard, that is treated as being satisfied.

(1) A notice under section 24 may prescribe minimum standards for the registration of an audit firm in any way the FMA thinks fit, including prescribing requirements relating to the firm's systems, policies, and procedures that relate to—

• (a) promoting compliance with—

  • (i) the requirements imposed by or under Parts 1 to 3 and other enactments that relate to the conduct of issuer audits; and

  • (ii) auditing and assurance standards; and

• (b) otherwise promoting reasonable care, diligence, and skill in the carrying out of issuer audits.

(2) The FMA may recognise any overseas certificate, registration, licence, or other authorisation as satisfying a particular minimum standard for the registration of an audit firm (in whole or in part) if, in the opinion of the FMA, that overseas certificate, registration, licence, or authorisation is equivalent to, or as satisfactory as, the standard, or part of the standard, that is treated as being satisfied.

In prescribing matters under this subpart, the FMA must be guided by the following principles:

• (a) the matters must be necessary or desirable to—

  • (i) promote, in respect of issuer audits, quality, expertise, and integrity in the profession of auditors; or

  • (ii) promote the recognition of the professional status of New Zealand auditors in overseas jurisdictions; or

  • (iii) carry out, give effect to, or provide for a matter that is incidental to, or consequential on, the matters relating to subparagraph (i) or (ii); and

• (b) the matters should not unnecessarily restrict the licensing of auditors or the registration of audit firms; and

• (c) the matters should not impose undue costs on auditors, on audit firms, or on issuers.

(1) Before the FMA publishes a notice in the Gazette under section 24, the FMA must consult the following about its proposal for the contents of the notice:

• (a) persons who the FMA considers are able to represent the views of auditors who carry out issuer audits (including the Institute); and

• (b) organisations—

  • (i) that the FMA considers will be substantially affected by the proposal; or

  • (ii) whose members the FMA considers will be substantially affected by the proposal.

(2) A failure to comply with subsection (1) does not affect the validity of any notice under section 24.

(1) The FMA must ensure that an up-to-date version of each notice under section 24 is—

• (a) available at all reasonable times on an Internet site maintained by or on behalf of the FMA; and

• (b) available at the head office of the FMA during business hours, so that members of the public may—

  • (i) inspect the notice free of charge; or

  • (ii) obtain a copy of the notice for a reasonable fee.

(2) Each notice under section 24—

• (a) is a regulation for the purposes of the Regulations (Disallowance) Act 1989 but is not a regulation for the purposes of the Acts and Regulations Publication Act 1989; and

• (b) must be presented to the House of Representatives in accordance with section 4 of the Regulations (Disallowance) Act 1989.

The Registrar must establish and maintain, in accordance with this subpart, a register of licensed auditors and registered audit firms.

(1) The register may be kept—

• (a) as an electronic register; or

• (b) in any other manner that the Registrar thinks fit.

(2) The register must be available for access and searching by members of the public unless suspended under subsection (3).

(3) The Registrar may refuse access to the register or otherwise suspend the operation of the register, in whole or in part,—

• (a) if the Registrar considers that it is not practical to provide access to the register; or

• (b) for any other reason that is prescribed by regulations made under Parts 1 to 3.

The purpose of the register is—

• (a) to enable any person to—

  • (i) determine whether a person is a licensed auditor and, if so, the status and relevant history of the person's licence; and

  • (ia) determine whether a partnership is a registered audit firm and, if so, the status and relevant history of the firm's registration; and

  • (ii) choose a suitable person or audit firm to carry out an issuer audit; and

  • (iii) know which licensed auditors have been disciplined within the last 7 years; and

• (b) to assist any person in the exercise of the person’s powers or the performance of the person’s functions under Parts 1 to 3 or any other enactment.

(1) The register must contain the following information about each licensed auditor (to the extent that the information is relevant):

• (a) the full name and business address of the licensed auditor; and

• (b) the name and address of the entity that has issued a licence to the licensed auditor (being either an accredited body or the FMA); and

• (c) the date of each licence that has been issued to the licensed auditor; and

• (d) the date on which each licence was recorded in the register; and

• (e) the expiry date of each licence that is currently in force (and whether the licence continues in force under section 16(4)); and

• (f) the kinds of issuer audits in respect of which the licensed auditor is authorised to act under each licence; and

• (g) the conditions placed on each licence that is currently in force; and

• (h) any suspension or cancellation of a licence that has been issued to the licensed auditor or any other action that has been taken on a disciplinary matter against the licensed auditor under Parts 1 to 3 by an accredited body, a disciplinary body, or the FMA in the last 7 years; and

• (i) any other prescribed information.

(1A) The register must contain the following information about each registered audit firm (to the extent that the information is relevant):

• (a) the full name and business address of the firm; and

• (b) the name and address of the entity that authorised the registration of the firm (being either an accredited body or the FMA); and

• (c) the date of registration; and

• (d) the names of all of the partners and employees of the firm that are licensed auditors; and

• (e) the conditions placed on the registration that are currently in force; and

• (f) any other prescribed information.

(2) The register may also contain—

• (a) information about former licensed auditors and former registered audit firms; and

• (b) information about licences that have been cancelled or suspended or otherwise expired in the last 7 years; and

• (c) any other information or documentation that the Registrar considers necessary or desirable for the purposes of the register.

(3) The Registrar must remove from the register information about a former licensed auditor contained in the register under subsection (2)(a) if the last licence held by the person was cancelled or expired more than 7 years ago.

(1) Every accredited body and the FMA must give written notice to the Registrar of any prescribed changes within 10 working days after the accredited body or the FMA (as the case may be) first becomes aware of the change.

(2) In subsection (1), prescribed changes means changes to the information included in the register that are of a kind that is prescribed for the purposes of this section.

(3) An accredited body commits an offence if it fails to comply with this section and is liable on summary conviction to a fine not exceeding $30,000.

(1) Every accredited body and the FMA must ensure that the Registrar receives each year, during the month allocated to the body or FMA for the purposes of this section, an annual confirmation.

(2) The annual confirmation must—

• (a) be in the form (if any) required by the Registrar and be accompanied by the prescribed fee (if any); and

• (b) either—

  • (i) confirm that, as at the date of the certificate, the information supplied to the Registrar in respect of the licences issued, and the registrations of audit firms authorised, by the accredited body or FMA is correct to the best of the accredited body's or FMA's knowledge; or

  • (ii) contain updated information to ensure that, as at the date of the certificate, the information referred to in subparagraph (i) is correct to the best of the accredited body's or FMA's knowledge; and

• (c) contain, or be accompanied by, any other prescribed information or documents.

(3) The annual confirmation must be dated as at a day within the month during which the certificate is required to be received by the Registrar.

(4) The Registrar must allocate a month to an accredited body and the FMA for the purposes of this section.

(5) The Registrar may, by written notice to an accredited body or the FMA, alter the month allocated to the accredited body or FMA under subsection (4).

The Registrar must amend the register if—

• (a) an accredited body or the FMA informs the Registrar of information that is different from the information entered on the register; or

• (b) an annual confirmation contains information that is different from the information entered on the register; or

• (c) the Registrar is satisfied at any time that the register contains a typographical error or a mistake, or omits information supplied to the Registrar; or

• (d) the regulations otherwise require the register to be amended.

The Registrar may refuse to accept a document received by the Registrar under Parts 1 to 3 if that document—

• (a) is not in the required form (if any); or

• (b) does not comply with prescribed requirements (if any).

(1) A person may search the register in accordance with Parts 1 to 3 or the regulations.

(2) The register may be searched only by reference to the following criteria:

• (a) the name, or any part of the name, of a person or audit firm:

• (b) the business address of a person or audit firm:

• (c) the name of an accredited body:

• (d) any kind of issuer audit in respect of which a licensed auditor is authorised to act under a licence:

• (f) any other prescribed criteria:

• (g) any combination of the criteria in paragraphs (a) to (f).

(3) The register may be searched for the following purposes:

• (a) by an individual, or a person with the consent of the individual, for the purpose of searching for information about that individual in accordance with the Privacy Act 1993:

• (b) by a person for a purpose referred to in section 31.

(4) A person who searches the register for personal information in breach of this section must be treated, for the purposes of Part 8 of the Privacy Act 1993, as having breached an information privacy principle under section 66(1)(a)(i) of that Act.

(1) The Registrar may delegate to any person, either generally or particularly, any of the Registrar’s functions, duties, and powers under this Part except the power of delegation.

(2) A delegation—

• (a) must be in writing; and

• (b) may be made subject to any restrictions and conditions the Registrar thinks fit; and

• (c) is revocable at any time, in writing; and

• (d) does not prevent the performance or exercise of a function, duty, or power by the Registrar.

(3) A person to whom any functions, duties, or powers are delegated may perform and exercise them in the same manner and with the same effect as if they had been conferred directly by this Part and not by delegation.

(4) A person who appears to act under a delegation is presumed to be acting in accordance with its terms in the absence of evidence to the contrary.

(1) The FMA may, on an application made by a person, grant accreditation to the person for the purposes of Parts 1 to 3 if the FMA is satisfied that the person—

• (a) will implement and maintain audit regulatory systems that are adequate and effective; and

• (b) meets the minimum standards for the grant of accreditation prescribed under section 24(1)(d); and

• (c) is a fit and proper person to perform regulatory functions for the purposes of Parts 1 to 3.

(2) Applications under subsection (1) must be—

• (a) made in the manner that is specified by the FMA; and

• (b) accompanied by payment of the prescribed fee for the application (if any).

(3) Every applicant under subsection (1) must provide to the FMA the information that is required by the FMA to assist it in determining the application.

(1) A person may be accredited as an accredited body subject to any conditions referred to in subsection (2) that the FMA thinks fit.

(2) The conditions are—

• (a) conditions relating to the procedure that an accredited body must follow when performing regulatory functions:

• (b) conditions to ensure that the accredited body's audit regulatory systems are adequate and effective:

• (c) any other prescribed conditions or conditions that relate to prescribed matters.

(3) The FMA may, at any time after accreditation is granted or treated as having been granted, by written notice to any accredited body (including the Institute), vary, remove, add to, or substitute any conditions of accreditation.

(1) The Institute must be treated as having been granted accreditation under this subpart on the commencement of this section.

(2) Subsection (1) does not prevent the FMA from—

• (a) imposing, varying, removing, adding to, or substituting any conditions of accreditation under section 40; or

• (b) cancelling or suspending the accreditation of the Institute under section 50; or

• (c) exercising or performing any other functions, powers, or duties under Parts 1 to 3 in respect of the Institute.

(1) Every accredited body must supply to the FMA an annual report.

(2) The annual report must—

• (a) be supplied each year within the time, and in the manner and form, specified by the FMA by a direction under subsection (3); and

• (b) contain—

  • (i) information relating to the accredited body's performance in carrying out regulatory functions for the purposes of Parts 1 to 3; and

  • (ii) information relating to any material changes to the accredited body's audit regulatory systems that it has implemented, is in the process of implementing, or is considering implementing (including stating what it has done in response to any direction issued under section 47); and

  • (iii) any other prescribed information.

(3) The FMA must—

• (a) prepare a direction that specifies the time within which, and the manner and form in which, annual reports must be supplied; and

• (b) send a copy of the direction to each accredited body; and

• (c) publish the direction on an Internet site maintained by or on behalf of the FMA.

(4) An accredited body that fails to supply an annual report in accordance with this section commits an offence and is liable on summary conviction to a fine not exceeding $50,000.

(1) The FMA must, before the start of each financial year, publish on an Internet site maintained by or on behalf of the FMA a plan relating to its intentions in relation to auditor regulation and oversight under Parts 1 to 3.

(2) The plan must relate to the forthcoming financial year and 2 or more further financial years.

(3) The plan must describe, in relation to auditor regulation and oversight,—

• (a) the specific impacts, outcomes, or objectives that the FMA seeks to achieve or contribute to; and

• (b) the ways in which the FMA expects accredited bodies to contribute to those impacts, outcomes, or objectives; and

• (c) how the FMA proposes to monitor accredited bodies under section 45.

(4) In this section and section 46, financial year means a financial year of the FMA.

The FMA must publish on an Internet site maintained by or on behalf of the FMA its policies in relation to how it acts, or proposes to act,—

• (a) in determining applications for accreditation; and

• (b) in imposing, varying, removing, or adding to conditions of accreditation.

(1) The FMA must monitor the audit regulatory systems of each accredited body in order to determine the extent to which those systems are adequate and effective.

(2) An accredited body must give all reasonable assistance to the FMA to enable the FMA to act under subsection (1).

(3) An accredited body commits an offence if the accredited body—

• (a) fails to comply with subsection (2); or

• (b) otherwise hinders, obstructs, or delays the FMA in acting under subsection (1).

(4) An accredited body that commits an offence under subsection (3) is liable on summary conviction to a fine not exceeding $100,000.

(1) The FMA must, no later than 6 months after the start of each financial year, prepare a report on the extent to which the audit regulatory systems of each accredited body are adequate and effective.

(2) Subsection (1) does not apply in respect of an accredited body if the FMA has, in the preceding financial year, been monitoring the accredited body under section 45 for less than 6 months.

(3) The FMA must, no later than 1 month after preparing a report under subsection (1), publish a notice in the Gazette that—

• (a) states that it has published a report on the adequacy and effectiveness of the audit regulatory systems of 1 or more accredited bodies; and

• (b) names the accredited bodies covered by the report; and

• (c) summarises any directions given under section 47 in the preceding financial year (but not the reasons); and

• (d) specifies where a copy of the report may be inspected or obtained.

(4) The FMA must, after publishing a notice in the Gazette under subsection (3), publish a copy of the report on an Internet site maintained by or on behalf of the FMA.

(5) This section does not prevent the FMA from preparing and publishing at any time any other reports about the extent to which the audit regulatory systems of an accredited body are adequate and effective.

(1) The FMA may give a direction under this section to an accredited body if the FMA is satisfied on reasonable grounds that—

• (a) its audit regulatory systems are not adequate and effective; or

• (b) the adequacy or effectiveness of the of its audit regulatory systems can be improved in order to better meet the purposes of Parts 1 to 3; or

• (c) its audit regulatory systems are inconsistent in a material respect with the FMA's plan under section 43.

(2) The directions may require the accredited body, within the time and in the manner specified by the FMA in the directions, to amend its audit regulatory systems to effectively address the matters that caused the FMA to give the directions.

A direction given under section 47 must—

• (a) be in writing; and

• (b) state the grounds on which it is given.

An accredited body that fails to comply with a direction under section 47 commits an offence and is liable on summary conviction to a fine not exceeding $50,000.

(1) This section applies if the FMA is satisfied on reasonable grounds that—

• (a) an accredited body has failed to—

  • (i) comply with a condition of its accreditation; or

  • (ii) supply an annual report in accordance with section 42; or

  • (iii) comply with a direction under section 47; or

  • (iv) comply with section 17, 33, 34, 45(2), or 67; or

• (b) the audit regulatory systems of an accredited body are not adequate and effective.

(2) The FMA may do 1 or more of the following:

• (a) order that the accreditation of the accredited body be cancelled:

• (b) order that a body whose accreditation has been cancelled may not apply to be re-accredited before the expiry of a specified period:

• (c) order that the accreditation of the accredited body be suspended—

  • (i) for any period that the FMA thinks fit; or

  • (ii) until the body does the things specified by the FMA in order to demonstrate that accreditation should be reinstated:

• (d) censure the accredited body:

• (e) order the accredited body to pay to the FMA any sum that the FMA considers just and reasonable towards the costs and expenses of, and incidental to, the FMA's consideration of whether an order should be made under this section:

• (f) make an order under section 52.

(3) However, the FMA may only cancel or suspend the accreditation of an accredited body if the FMA is satisfied on reasonable grounds that—

• (a) the failure or failures referred to in subsection (1)(a) (as the case may be) are serious or persistent; or

• (b) in the case of subsection (1)(b), the audit regulatory systems of the accredited body are seriously inadequate or ineffective.

(4) The FMA may order that an order under subsection (2)(a), (b), or (c) is to take effect immediately or at some later time.

An order made under section 50 must—

• (a) be in writing; and

• (b) state the grounds on which it is made.

(1) If the accreditation of a person (A) is—

• (a) cancelled under section 50, each licence issued by A is treated as cancelled:

• (b) suspended under section 50, each licence issued by A is treated as suspended during the period in which A's accreditation is suspended.

(2) The FMA may order that subsection (1) does not apply in respect of 1 or more classes of licences.

(2A) If 1 or more classes of licences issued by A continue in force as a result of an order under subsection (2), the FMA may order, on the terms and conditions that it thinks fit, that another accredited body may perform regulatory functions in respect of those licences as if the other accredited body issued those licences (and that other accredited body may be the FMA acting under section 78A).

(3) The FMA may authorise a person whose licence is suspended or cancelled under subsection (1) to act, or continue to act, in respect of an issuer audit under section 22.

(4) Subsection (1) is subject to subsections (2) and (3).

(5) If A was the relevant body under subpart 1A in respect of a registered audit firm,—

• (a) the cancellation or suspension of A's accreditation under section 50 does not result in the cancellation or suspension of the registration of the audit firm; but

• (b) the FMA may order, on the terms and conditions that it thinks fit, that another accredited body may act as the relevant body under that subpart (and that other accredited body may be the FMA acting under section 78A).

The FMA must not exercise a power referred to in section 40(3), 47, or 50 unless—

• (a) the FMA gives the accredited body at least 10 working days' written notice of the following matters before it exercises the power:

  • (i) that the FMA may exercise a power under section 40(3), 47, or 50 (as the case may be); and

  • (ii) the reasons why it is considering exercising that power; and

• (b) the FMA gives the accredited body or its representative an opportunity to make written submissions and to be heard on the matter within that notice period.

(1) A person may appeal to the High Court against any decision of the FMA—

• (a) to decline to grant accreditation to the person under this subpart; or

• (b) to include conditions under section 40 on the person's accreditation or proposed accreditation; or

• (c) to give a direction under section 47 in respect of the person's accreditation; or

• (d) to make an order under section 50 in respect of the person's accreditation; or

• (e) to decline to make an order under section 52(2) in respect of the person's licence.

(2) An appeal must be brought—

• (a) in accordance with the rules of court; and

• (b) within 20 working days after notice of the decision is communicated to the appellant, or within any further time a High Court Judge allows on an application made before or after the period expires.

If an accredited body is not the Institute, sections 9 to 13 and 16 of the New Zealand Institute of Chartered Accountants Act 1996 apply to the accredited body with any necessary modifications in relation to persons to whom it has issued a licence as if references to—

• (a) the Professional Conduct Committee were references to the committee or other authority of the accredited body that has the function of investigating complaints against members and former members of the accredited body; and

• (b) a disciplinary body were references to a disciplinary body of the accredited body; and

• (c) the Institute were references to the accredited body.

(1) The FMA must, for the purpose referred to in subsection (2), ensure that a review is carried out of the systems, policies, and procedures of—

• (a) each registered audit firm, and every other audit firm that has at least 1 partner, director, or employee who holds a licence issued under section 10; and

• (b) each licensed auditor who holds a licence issued under section 10 that is not a partner, director, or employee of an audit firm.

(2) The quality review is for the purpose of ensuring that the systems, policies, and procedures are satisfactory in terms of—

• (a) promoting compliance with—

  • (i) the requirements imposed by or under Parts 1 to 3 and other enactments that relate to the conduct of issuer audits; and

  • (ii) auditing and assurance standards; and

• (b) otherwise promoting reasonable care, diligence, and skill in the carrying out of issuer audits.

(3) A quality review must be carried out at least once in every 4-year period during which,—

• (a) in the case of subsection (1)(a), at least 1 partner, director, or employee of the audit firm holds a licence issued under section 10:

• (b) in the case of subsection (1)(b), the person holds a licence issued under section 10.

(4) The audit firm or licensed auditor (as the case may be) must pay to the FMA the prescribed fees and charges in respect of a quality review at the prescribed time or times.

(1) The FMA may arrange for an accredited body or any other suitably qualified person to carry out a quality review (in whole or in part) on its behalf.

(2) For the purposes of subsection (1), sections 73 to 76 of the Crown Entities Act 2004 (which relate to delegations) apply as if the persons to whom the FMA may make a delegation under section 73(1) of that Act include a person referred to in subsection (1).

(3) The FMA must take reasonable steps to ensure that the judgement of the individuals that carry out a quality review is not impaired by reason of any relationship with or interest in the relevant audit firm or licensed auditor.

(1) Section 56 does not apply to—

• (a) an overseas auditor who is issued with a licence by the FMA (and holds no other licence issued by an accredited body); or

• (ab) an overseas audit firm that is a registered audit firm (as a result of an application made under section 23B); or

• (b) the Auditor-General or any of his or her employees.

(2) If a licensed auditor or registered audit firm is acting under the Public Audit Act 2001, the quality review under section 56 may not extend to a review of any matter relating to the carrying out of an audit under section 15 of that Act, or to the provision of a specific service under section 17 of that Act, unless the Auditor-General gives his or her written approval.

(3) Subsection (2) does not limit subsection (1).

(4) This section does not limit section 15A of the Public Audit Act 2001.

(1) A quality review must include—

• (a) an assessment of the design of the internal quality control system of the audit firm or licensed auditor in connection with the provision of audit services; and

• (b) reasonable compliance testing of procedures, and a review of audit files in respect of a reasonable number of issuer audits, in order to verify the effectiveness of the internal quality control system; and

• (c) a review of the systems, policies, and procedures of the audit firm or licensed auditor in respect of—

  • (i) compliance with Parts 1 to 3 and other enactments that relate to the conduct of issuer audits:

  • (ia) compliance with auditing and assurance standards:

  • (ii) the quantity and quality of resources used:

  • (iii) compliance with competence programmes.

(2) A quality review must otherwise be carried out in the prescribed manner.

(3) If an audit file has been reviewed under subsection (1)(b), the quality review may include any further inquiries in respect of the issuer audit for the purpose of determining whether the issuer audit has been carried out—

• (a) in accordance with—

  • (i) the requirements imposed by or under Parts 1 to 3 and other enactments that relate to the conduct of issuer audits; and

  • (ii) auditing and assurance standards; and

• (b) otherwise with reasonable care, diligence, and skill.

(1) This section applies, in respect of a quality review of the systems, policies, and procedures of an audit firm, to—

• (a) every partner, director, and employee of the audit firm; and

• (b) every person who provides services to the audit firm under a contract for services; and

• (c) every issuer in relation to which the audit firm (or any of its partners, directors, or employees) has carried out, or is carrying out, an issuer audit.

(2) This section applies, in respect of a quality review of the systems, policies, and procedures of a licensed auditor, to—

• (a) the licensed auditor; and

• (b) every employee of the licensed auditor; and

• (c) every person who provides services to the licensed auditor under a contract for services; and

• (d) every issuer in relation to which the licensed auditor (or any of his or her employees) has carried out, or is carrying out, an issuer audit.

(3) Every person to whom this section applies commits an offence if the person hinders, obstructs, or delays the FMA (or a person referred to in section 57(1)) in connection with the carrying out of a quality review and is liable on summary conviction,—

• (a) in the case of an individual, to a fine not exceeding $40,000:

• (b) in the case of a body corporate, to a fine not exceeding $100,000.

(1) Subsection (2) applies if, after a quality review is completed, the FMA is satisfied on reasonable grounds that the systems, policies, and procedures of the audit firm or the licensed auditor are not sufficient in terms of—

• (a) promoting compliance with—

  • (i) the requirements imposed by or under Parts 1 to 3 and other enactments that relate to the conduct of issuer audits; or

  • (ii) auditing and assurance standards; or

• (b) otherwise promoting reasonable care, diligence, and skill in the carrying out of issuer audits.

(2) The FMA may give directions to the audit firm or the licensed auditor that require the audit firm or the licensed auditor, within the time and in the manner specified by the FMA in the directions, to amend the systems, policies, and procedures of the audit firm or the licensed auditor to effectively address the matters that caused the FMA to give the directions.

(3) Subsection (4) applies if, after inquiries are made under section 59(3) in respect of an issuer audit, the FMA is satisfied on reasonable grounds that the issuer audit has not been carried out—

• (a) in accordance with—

  • (i) the requirements imposed by or under Parts 1 to 3 and other enactments that relate to the conduct of issuer audits; or

  • (ii) auditing and assurance standards; or

• (b) otherwise with reasonable care, diligence, and skill.

(4) The FMA may give directions to the audit firm or the licensed auditor that require the audit firm or the licensed auditor, within the time and in the manner specified by the FMA in the directions, to take reasonable steps to mitigate or remedy the failure to carry out the issuer audit in accordance with the matters referred to in subsection (3)(a) or otherwise with reasonable care, diligence, and skill (for example, by making a public announcement relating to the auditor's report).

(5) However, the FMA may not require a person, under subsection (4), to pay compensation to any other person in respect of the failure.

(6) Subsection (4) does not limit the action that the FMA may take in respect of the matter under subpart 6 (and, for that purpose, the FMA's inquiries under section 59(3) may form part of or constitute the FMA's investigation under that subpart).

(1) If an audit firm fails to comply with a direction given to it under section 61,—

• (a) every partner or director of the firm commits an offence and is liable on summary conviction to a fine not exceeding $25,000 if—

  • (i) the failure to comply took place with his or her authority, permission, or consent; or

  • (ii) he or she could reasonably have known that the failure to comply was to take or was taking place and failed to take all reasonable steps to prevent or stop it; and

• (b) the FMA may make an order that the licence of 1 or more of those partners or directors be—

  • (i) suspended for the period that the FMA thinks fit; or

  • (ii) cancelled; and

• (c) a notice may be given to the Registrar under section 23E to cancel the registration of the audit firm.

(2) If a licensed auditor fails to comply with a direction given to him or her under section 61,—

• (a) he or she commits an offence and is liable on summary conviction to a fine not exceeding $25,000; and

• (b) the FMA may make an order that his or her licence be—

  • (i) suspended for the period that the FMA thinks fit; or

  • (ii) cancelled.

(3) If the FMA orders the cancellation of a licence, it may also make an order that the person whose licence is cancelled may not apply to be relicensed, whether with the same or a different accredited body, before the expiry of a specified period.

(1) A direction given under section 61 and an order made under section 62 must—

• (a) be in writing; and

• (b) state the grounds on which it is given or made.

(2) The FMA must give a copy of the order made under section 62 to—

• (a) the licensed auditor; and

• (b) the accredited body that issued the licence to the licensed auditor; and

• (c) the Registrar.

(3) The FMA must not give a direction to an audit firm under section 61 unless—

• (a) the FMA gives to the audit firm (or to at least 1 of the partners or directors of the audit firm) at least 10 working days' written notice of the following matters before it gives the direction:

  • (i) that the FMA may give a direction under section 61; and

  • (ii) the reasons why it is considering exercising that power; and

• (b) the FMA gives the audit firm or a representative of the audit firm an opportunity to make written submissions and to be heard on the matter within that notice period.

(4) The FMA must not give a direction to a licensed auditor under section 61 or make an order under section 62 in respect of a licensed auditor unless—

• (a) the FMA gives the licensed auditor at least 10 working days' written notice of the following matters before it exercises the power:

  • (i) that the FMA may give a direction under section 61 or make an order under section 62 (as the case may be); and

  • (ii) the reasons why it is considering exercising that power; and

• (b) the FMA gives the licensed auditor or his or her representative an opportunity to make written submissions and to be heard on the matter within that notice period.

(5) The FMA may order that an order under section 62 is to take effect immediately or at some later time.

(1) The FMA must, no later than 6 months after the start of each financial year of the FMA, prepare a report on the quality reviews that have been carried out under this subpart in the previous financial year.

(2) The FMA must, no later than 1 month after preparing a report under subsection (1), publish a notice in the Gazette that—

• (a) states that it has prepared a report under subsection (1); and

• (b) specifies where a copy of the report may be inspected or obtained.

(3) The FMA must, after publishing a notice in the Gazette under subsection (2), publish a copy of the report on an Internet site maintained by or on behalf of the FMA.

(1) The FMA may prepare a report on a quality review of the systems, policies, and procedures of a particular licensed auditor or audit firm.

(2) The FMA may publish a copy of the report on an Internet site maintained by or on behalf of the FMA.

(1) The FMA may, if it is satisfied on reasonable grounds that it is in the public interest to do so,—

• (a) start an investigation; or

• (b) take over an investigation started by an accredited body; or

• (c) conduct an investigation in conjunction with an accredited body.

(2) However, the FMA may not investigate, under this subpart, the conduct of a member of an accredited body in respect of an issuer audit unless—

• (a) the FMA is satisfied on reasonable grounds that—

  • (i) the accredited body has decided not to investigate the matter; or

  • (ii) the matter is not being investigated promptly or otherwise in a reasonable manner by, or on behalf of, the accredited body; or

• (b) the accredited body has asked the FMA to act under this subpart in respect of the matter.

(3) In this subpart, an investigation is an investigation into the conduct of a licensed auditor in respect of 1 or more issuer audits (whether he or she holds a licence issued under section 10 or 11).

(4) This subpart does not limit any other powers of the FMA, under any other enactment, to investigate or inquire into any matter.

(1) If the FMA starts, or takes over, an investigation under this subpart in respect of a member of an accredited body, the accredited body may do the following only with the FMA's written approval:

• (a) start or continue another investigation into the same matter:

• (b) take any disciplinary or other action against the licensed auditor in respect of the same matter.

(2) However, the FMA may not act under this subpart in respect of the conduct of a licensed auditor if the conduct is, or has been, the subject of proceedings before a disciplinary body.

(1) An accredited body must, in respect of an investigation by the FMA involving a member of the accredited body, give all reasonable assistance to the FMA to enable the investigation to be carried out.

(2) An accredited body commits an offence if the accredited body—

• (a) fails to comply with subsection (1); or

• (b) otherwise hinders, obstructs, or delays the FMA in carrying out an investigation.

(3) An accredited body that commits an offence under subsection (2) is liable on summary conviction to a fine not exceeding $100,000.

(1) The FMA may, after acting under section 65, make 1 or more of the orders specified in subsection (2) if it is satisfied on reasonable grounds that 1 or more issuer audits carried out by the licensed auditor are not being, or have not been, carried out—

• (a) in accordance with—

  • (i) the requirements imposed by or under Parts 1 to 3 or any other enactments that relate to the conduct of issuer audits; or

  • (ii) auditing and assurance standards; or

• (b) otherwise with reasonable care, diligence, and skill.

(2) The orders are—

• (a) an order that the licensed auditor's licence be cancelled:

• (b) an order that the person whose licence is cancelled may not apply to be relicensed, whether with the same or a different accredited body, before the expiry of a specified period:

• (c) an order that the licensed auditor's licence be suspended for the period that the FMA thinks fit:

• (d) an order prohibiting the licensed auditor from acting in respect of a specified issuer audit, or a specified class or classes of issuer audit,—

  • (i) permanently; or

  • (ii) for any period that the FMA thinks fit:

• (e) an order that the licensed auditor pay to the FMA any sum that the FMA considers just and reasonable towards the costs and expenses of, and incidental to, the FMA's investigation and the proceedings.

(3) The FMA must not exercise a power referred to in this section unless—

• (a) the FMA gives the licensed auditor at least 10 working days' written notice of the following matters before it exercises the power:

  • (i) that the FMA may exercise a power under this section; and

  • (ii) the reasons why it is considering exercising that power; and

• (b) the FMA gives the licensed auditor or his or her representative an opportunity to make written submissions and to be heard on the matter within that notice period.

(4) The FMA may order that an order under this section is to take effect immediately or at some later time.

(1) An order made under section 68 must—

• (a) be in writing; and

• (b) state the grounds on which it is made.

(2) The FMA must give a copy of the order made under section 68 to—

• (a) the licensed auditor; and

• (b) the accredited body that issued the licence to the licensed auditor; and

• (c) the Registrar.

The FMA may take over and perform a regulatory function of an accredited body (in whole or in part), or perform a regulatory function of an accredited body (in whole or in part) in conjunction with the accredited body, if—

• (a) the accredited body asks the FMA to act in that manner in relation to a class of its members; and

• (b) the FMA is satisfied on reasonable grounds that it is necessary or desirable for the FMA to act in that manner in order to promote the recognition of the professional status of New Zealand auditors in overseas jurisdictions.

(1) For the purposes of this subpart, the FMA has the following powers:

• (a) all powers that the accredited body, or any committee or disciplinary body of the accredited body, has in respect of the regulatory function or part of the regulatory function as the case may be (whether conferred by or under Parts 1 to 3 or any other enactment or the rules of the accredited body); and

• (b) any other prescribed powers.

(2) This section does not limit any other powers of the FMA.

The enactments specified in Schedule 1 are amended in the manner indicated in that schedule.

(1) This section amends the Securities Regulations 2009.

(2) Schedule 15 is amended by revoking clause 6 and substituting the following clause:

(1) The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:

• (a) prescribing countries, states, or territories for the purposes of the definition of overseas auditor:

• (b) prescribing changes for the purposes of sections 12 and 33:

• (c) prescribing information or documents for the purposes of section 13, 23C, 34, 42, 75, 76, or 76A:

• (d) prescribing conditions or matters that conditions may relate to for the purposes of section 40(2)(c):

• (e) prescribing the manner in which a quality review must be carried out (including prescribing matters that must be considered, reviewed, or tested):

• (f) prescribing powers for the purposes of subpart 7 of Part 2:

• (g) prescribing forms for the purposes of this Act, and prescribing—

  • (i) the inclusion in, or attachment to, forms of specified information or documents:

  • (ii) forms to be signed by specified persons:

• (h) prescribing requirements with which information or documents sent or delivered for registration must comply:

• (i) prescribing fees and charges that the Registrar or the FMA may require to be paid to him, her, or it (or the rate at which or the method by which fees and charges are to be calculated)—

  • (i) in connection with the exercise or performance by the Registrar or the FMA of any function, power, or duty conferred by or under this Act (for example, when conducting a quality review):

  • (ii) on an application to the Registrar or the FMA to exercise or perform any function, power, or duty conferred by or under this Act:

• (j) authorising the Registrar or the FMA to require payment of any costs incurred by the Registrar or the FMA:

• (k) prescribing procedures, requirements, and other matters, not inconsistent with this Act, for the register, including matters that relate to—

  • (i) the operation of the register:

  • (ii) the form of the register:

  • (iii) the information to be contained in the register:

  • (iv) access to the register:

  • (v) the location of, and hours of access to, the register:

  • (vi) search criteria for the register:

• (l) providing for any other matters contemplated by this Act, necessary for its administration, or necessary for giving it full effect.

(2) The Registrar or the FMA may refuse to perform a function or exercise a power until a prescribed fee, charge, or cost is paid.

(3) Regulations made under subsection (1)(i) or (j) may—

• (a) prescribe the method of payment of a fee, charge, or cost; and

• (b) authorise the Registrar or the FMA to refund or waive, in whole or in part and on any prescribed conditions, payment of a fee, charge, or cost in relation to any person or class of persons.

(4) Any fee, charge, or cost cost, or other amount payable to the Registrar or the FMA by or under Parts 1 to 3 is recoverable by the Registrar or the FMA in any court of competent jurisdiction as a debt due to the Registrar or the FMA.

(1) This section applies to a person who,—

• (a) immediately before the commencement of this section, is a chartered accountant who has, at any time within the 2-year period before that commencement, acted as the auditor in respect of an issuer audit; and

• (b) satisfies the transitional requirements prescribed under section 24(1)(f) for the purposes of this section.

(2) The person must, on and after the commencement of this section, be treated as holding a licence issued by the Institute under section 10 that—

• (a) is recorded in the register; and

• (b) is subject to a condition that authorises the person to carry out any issuer audit act as the auditor in respect of all kinds of issuer audits; and

• (c) expires on the earlier earliest of—

  • (i) the date that the person is issued with another licence under section 10; or

  • (ii) the date that the licence is cancelled; or

  • (iii) the date that is 2 years after the commencement of this section.

(3) For the purpose of including information in the register in respect of a person that is treated as holding a licence under this section, the person must provide to the Registrar the prescribed information within 40 working days after the commencement of this section.

(4) If a person fails to comply with subsection (3), the licence may be cancelled under section 19 or suspended under section 20.

(1) This section applies to a person who,—

• (a) immediately before the commencement of this section, is a person referred to in section 199(1)(c) or (d) of the Companies Act 1993 and who has, at any time within the 2-year period before that commencement, acted as the auditor in respect of an issuer audit; and

• (b) satisfies the transitional requirements prescribed under section 24(1)(f) for the purposes of this section.

(2) The person must, on and after the commencement of this section, be treated as holding a licence issued by the FMA under section 11 that—

• (a) is recorded in the register; and

• (b) is subject to a condition that authorises the person to carry out any issuer audit act as the auditor in respect of all kinds of issuer audits; and

• (c) expires on the earlier earliest of—

  • (i) the date that the person is issued with another licence under section 11; or

  • (ii) the date that the licence is cancelled; or

  • (iii) the date that is 2 years after the commencement of this section.

(3) For the purpose of including information in the register in respect of a person that is treated as holding a licence under this section, the person must provide to the Registrar the prescribed information within 40 working days after the commencement of this section.

(4) If a person fails to comply with subsection (3), the licence may be cancelled under section 19 or suspended under section 20.

(1) This section applies to an audit firm that,—

• (a) immediately after the commencement of section 75, is a partnership that has at least 1 partner who is a licensed auditor; and

• (b) has, at any time within the 2-year period before that commencement, been appointed or engaged to act as the auditor in respect of an issuer audit; and

• (c) satisfies the transitional requirements prescribed under section 24(1)(f) for the purposes of this section.

(2) However, this section does not apply to an overseas audit firm or a limited partnership.

(3) On and from the commencement of this section, the audit firm must be treated as being a registered audit firm and the Institute must be treated as being the relevant body for the purposes of subpart 1A of Part 2.

(4) However, the audit firm ceases to be treated as being a registered audit firm under this section on the earlier earliest of—

• (a) the date that the Registrar registers the audit firm under section 23C (following an application under section 23A); or

• (b) the date that the registration is cancelled under section 23E; or

• (c) the date that is 2 years after the commencement of this section.

(5) Subsection (4) does not prevent an audit firm from continuing to be a registered audit firm by virtue of registration under subpart 1A of Part 2.

(6) For the purpose of including information in the register in respect of an audit firm that is treated as being a registered audit firm under this section, the audit firm must provide to the Registrar the prescribed information within 40 working days after the commencement of this section.

(7) If an audit firm fails to comply with subsection (6), the registration of the firm may be cancelled under section 23E.

Nothing in section 75 or 76 or 76A prevents—

• (a) the Institute or the FMA (as the case may be) from—

  • (i) varying, removing, adding, or substituting conditions of the licence or registration (including varying the condition referred to in section 75(2)(b) or 76(2)(b)); or

  • (ii) cancelling or suspending the licence of a person or giving a notice to the Registrar to cancel the registration of an audit firm; or

  • (iii) exercising any other power in relation to that licence or registration under Parts 1 to 3; or

• (b) the FMA from exercising any power in relation to that licence or registration under Parts 1 to 3.

(1) The requirements in sections 8 and 9 do not apply to issuer audits in respect of financial statements, or group financial statements, prepared for accounting periods that ended before the commencement of this section.

(2) The amendments made by section 72 and Schedule 1 do not apply to audits in respect of financial statements, or group financial statements, prepared for accounting periods that ended before the commencement of this section and, accordingly, the requirements and provisions that would have applied if those amendments had not been made continue to apply to those audits.

Nothing in section 8 or 9 applies to the Auditor-General (and, accordingly, the Auditor-General is not required to hold a licence).

(1) The FMA may act as an accredited body if it—

• (a) suspends or cancels the accreditation of a body under section 50; and

• (b) considers that it is in the public interest for it to act as an accredited body having regard to the purposes of this Act.

(2) If the FMA decides to act under subsection (1), it must be treated as being an accredited body (except for the purposes of subpart 4 of Part 2).

(1) The FMA's power under this Act to make, issue, give, or publish any order, direction, notice, or other instrument includes the power to—

• (a) amend or revoke it:

• (b) revoke it and replace it with another.

(2) This section does not limit section 15 of the Interpretation Act 1999.

(1) An accredited body is not liable for anything it may do or fail to do in the course of the performance or exercise or intended performance or exercise of its functions, powers, or duties under Parts 1 to 3, unless it is shown that it acted in bad faith or without reasonable care.

(2) An officer, an employee, or a person acting on behalf of an accredited body is not liable for anything he or she may do or say or fail to do or say in the course of the performance or exercise or intended performance or exercise of the accredited body's functions, powers, or duties under Parts 1 to 3, unless it is shown that he or she acted in bad faith.

(1) An accredited body may provide to the FMA any information, or a copy of any document, that the accredited body—

• (a) holds in relation to the performance or exercise of the accredited body's functions, powers, or duties under the rules of the accredited body or under any enactment; and

• (b) considers may assist the FMA in the performance or exercise of the FMA's functions, powers, or duties under this Act or any other enactment.

(2) An accredited body may, subject to any conditions imposed by the FMA, use any information, or a copy of any document, provided to it by the FMA under any enactment in the accredited body's performance or exercise of its functions, powers, or duties under the rules of the accredited body or under any enactment.

(3) This section applies despite anything to the contrary in any enactment, contract, deed, or document.

(1) Unless Parts 1 to 3 provide otherwise, if a provision of Parts 1 to 3 requires or authorises any notice or other document, or any notification, to be given or provided to a person, the notice, document, or notification must be given in writing to the person—

• (a) by delivering it personally or by an agent (such as a courier) to the person; or

• (b) by sending it by prepaid post addressed to the person at the person's usual or last known place of residence or business; or

• (c) by sending it by fax or electronic communication to the person's fax number or electronic address provided by the person for the purpose; or

• (d) in any other manner a District Court Judge directs.

(2) In the absence of proof to the contrary, a notice, document, or notification sent to a person in accordance with—

• (a) subsection (1)(b) must be treated as having been given or provided to the person when it would have been delivered in the ordinary course of the post; and, in proving the delivery, it is sufficient to prove that the letter was properly addressed and posted:

• (b) subsection (1)(c) must be treated as having been given or provided to the person on the second working day after the day on which it is sent.

(3) If a person is absent from New Zealand, a notice, document, or notification given to the person's agent in New Zealand in accordance with subsection (1) must be treated as having been given or provided to the person.

(4) If a person has died, the notice, document, or notification may be given, in accordance with subsection (1), to his or her personal representative.

(5) If a notice, document, or notification is required to be given to an audit firm that is a partnership, it may be given to any of the partners; and for the purposes of Parts 1 to 3, giving it to any of the partners must, unless otherwise directed by the FMA, be treated as service on all of those partners.

(1) Every person commits an offence who, for the purpose of obtaining any licence, registration, or accreditation under Parts 1 to 3 or for any other purpose relating to Parts 1 to 3, either on the person's own behalf or on behalf of any other person,—

• (a) either orally or in writing, makes any declaration or representation to a specified body that, to the person's knowledge, is false or misleading in any material particular; or

• (b) provides to a specified body any document knowing that the document—

  • (i) contains any declaration or representation that is false or misleading in any material particular; or

  • (ii) is not genuine; or

• (c) makes use of any document knowing that the document—

  • (i) contains any declaration or representation that is false or misleading in any material particular; or

  • (ii) is not genuine.

(2) In subsection (1), specified body means an accredited body, the Registrar, or the FMA.

(3) A person who is convicted of an offence under subsection (1) is liable on summary conviction to a fine not exceeding $50,000.