New NZICA Rules come into effect

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The New Zealand Institute of Chartered Accountants (NZICA) has recently issued a revised set of Rules pursuant to the New Zealand Institute of Chartered Accountants Act 1996.  The new Rules replace the 4 December 2020 version and became effective on 11 March 2024.  They contain a number of amendments, including providing for accounting firms, partnerships and other practice entities to be members of NZICA.  The most notable changes are within the Discipline section (Section 13) of the Rules, which include:

  • The Discipline section of the Rules is now supplemented by a new Appendix VIII: Matters Pertaining to Conduct and Discipline, which is intended to supplement and clarify the main section of the Rules.

  • A new Consent Order Agreement process is introduced whereby the Professional Conduct Committee (PCC) and a member can negotiate and agree a consent order agreement within a specified period, setting out the agreed sanction or orders against a member where the PCC considers that a complaint would otherwise warrant referral to the Disciplinary Tribunal.

  •  The new Rules codify:

  • the matters which the PCC, Disciplinary Tribunal or the Appeals Council may consider in determining what sanction(s) to impose on a member.

  • the matters the PCC, Disciplinary Tribunal or the Appeals Council may have regard to in determining whether to require a member to pay costs and the amount of such costs.

  • the definitions of “Conduct Unbecoming a Member” and “Misconduct”.

Comment – Angus Wakeman

The new Rules provide useful guidance to members and their advisers regarding the disciplinary complaint process and the matters which the NZICA disciplinary bodies can take into account.  Facing a disciplinary complaint can be a daunting and stressful experience for members.  The clarification around sanctions and costs that may be imposed and the factors which will be considered in their determination should help.  The additional flexibility of the consent order agreement process in agreeing the penalty at the PCC stage (rather than having the complaint referred to the Disciplinary Tribunal), will also hopefully assist in navigating through the process.