Accountants Act (2024 Revision)

CAYMAN ISLANDS Accountants Act (2024 Revision) ACCOUNTANTS (APPLICATION FOR MEMBERSHIP) REGULATIONS (2024 Revision) Supplement No. 1 published with Legislation Gazette No. 4 dated 1st February, 2024. PUBLISHING DETAILS Revised under the authority of the Law Revision Act (2020 Revision). The Accountants (Application for Membership) Regulations, 2016 made 23rd November, 2016 as amended by the Citation of Acts of Parliament Act, 2020 [Act 56 of 2020]. Consolidated with — Accountants (Application for Membership) (Amendment) Regulations, 2023 made 31st January, 2023. Consolidated and revised this 31st day of December, 2023. Page 2 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) Arrangement of Regulations CAYMAN ISLANDS Accountants Act (2024 Revision) ACCOUNTANTS (APPLICATION FOR MEMBERSHIP) REGULATIONS (2024 Revision) Arrangement of Regulations Regulation Page 1. Citation ......................................................................................................................................5 2. Definitions ..................................................................................................................................5 3. Form of application ....................................................................................................................7 4. Application for registration and renewal as a regular member ....................................................7 4A. Application for registration and renewal as a retired member .....................................................8 5. Application for registration and renewal as an associate member ..............................................9 6. Application for registration and renewal as a student member ................................................. 10 7. Application for licensing and renewal as a practitioner member ............................................... 11 8. Continuing obligations of regular, practitioner and retired members ......................................... 12 9. Application for registration and renewal as a public practice firm.............................................. 12 10. Continuing obligations of registered firms ................................................................................ 14 11. Notification of changes ............................................................................................................ 14 11A. Cancellation or variation of registration .................................................................................... 14 12. Fees ........................................................................................................................................ 15 SCHEDULE 1 17 FEES 17 SCHEDULE 2 18 CONTINUING PROFESSIONAL DEVELOPMENT REQUIREMENT 18 c Revised as at 31st December, 2023 Page 3 Arrangement of Regulations Accountants (Application for Membership) Regulations ENDNOTES 21 Table of Legislation history: ............................................................................................................... 21 Page 4 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) Regulation 1 CAYMAN ISLANDS Accountants Act (2024 Revision) ACCOUNTANTS (APPLICATION FOR MEMBERSHIP) REGULATIONS (2024 Revision) 1. Citation 1. These Regulations may be cited as the Accountants (Application for Membership) Regulations (2024 Revision). 2. Definitions 2. In these Regulations — “applicant” means a person applying to register as a member or renew an existing membership; “continuing professional development” is the ongoing professional development and education of members; “good character” means a status resulting from carrying out professional duties while consistently adhering to accepted moral and ethical principles; “good standing” means the status assigned by a member’s overseas professional accountancy institute, which may be based upon the timely payment of fees and the absence of disciplinary orders against the member; “legal status” means the status of an applicant according to the Immigration (Transition) Act (2022 Revision); c Revised as at 31st December, 2023 Page 5 Regulation 2 Accountants (Application for Membership) Regulations (2024 Revision) “managing partner” means the senior person in charge of a public practice firm’s overall practice, management and day-to-day operations; “practitioner member” means a regular member who has been granted a licence pursuant to section 11 or 12 of the principal Act; “principal Act” means the Accountants Act (2024 Revision); “professional person” means a person who holds an accounting designation or an equivalent professional designation who is subject to requirements similar to those imposed by the Institute ( including ethical requirements) and to disciplinary proceedings for failure to comply with those requirements and includes persons approved or regulated by a regulatory body that applies good character requirements; “professional status” means information describing and confirming professional capacity, competence and good character, including but not limited to — (a) professional designations and qualifications; (b) name of overseas professional accountancy institute; (c) overseas professional accountancy institute membership identification number; (d) date of first qualifying or becoming a member of the overseas professional accountancy institute; (e) amount in time and type of professional experience; (f) current job title; and (g) character references; “public practice firm” means a firm of public accountants and includes a registered firm and a person registered as a relevant sole practitioner under section 38 of the principal Act; “registered firm” means a public practice firm registered under section 38 of the principal Act; “regular member” means a member other than an associate member, student member or registered firm; “student member” means student as defined in the principal Act; and “verifiable continuing professional development” means continuing professional development that can be applied in the work of the member, is relevant to the member’s career and which the member can prove was undertaken. Page 6 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) Regulation 3 3. Form of application 3. All applications and renewals referred to in these Regulations shall be submitted in such manner as the Institute may from time to time direct, which may include submission in electronic form. 4. Application for registration and renewal as a regular member 4. (1) An applicant for registration as a regular member shall submit an application pursuant to section 8 of the principal Act in the form determined by the Institute, which shall include but not be limited to the following information — (a) full name (b) nationality; (c) date of birth; (d) business contact details; (e) personal contact details; (f) legal status; and (g) professional status. (2) The Institute may require an applicant to submit evidence to verify the information in the application or to satisfy the Institute that the applicant meets the professional status requirements and requirements of section 8 of the principal Act. (3) The application shall be accompanied with — (a) the prescribed application fee; (b) the name and contact details of a professional person who has worked with the applicant for two years or more and is able to confirm the good character of the applicant; (c) a declaration that — (i) the application is accurate and complete; (ii) the ethics and continuing professional development requirements of the Institute and the overseas professional accountancy institute have been met; (iii) the applicant is not subject to previous disciplinary action, exclusion from a professional body or bankruptcy and has not been convicted of a criminal offence; and (iv) the applicant is in good standing with the applicant’s overseas professional accounting institute; and (d) a waiver and indemnity necessary to enable the Institute to effectively and efficiently discharge its obligations under the principal Act. c Revised as at 31st December, 2023 Page 7 Regulation 4A Accountants (Application for Membership) Regulations (2024 Revision) (4) An application for renewal of registration as a regular member pursuant to section 8 of the principal Act shall — (a) confirm or notify any changes to the information submitted in the application or last renewal; (b) include an updated declaration that meets the requirements of paragraph (3)(c); and (c) be submitted with the prescribed annual renewal fee by December 31st each year. (5) The Institute may require an applicant to provide supplementary information or clarification of the information provided in an application for registration or for renewal and evidence to support that information or clarification. 4A. Application for registration and renewal as a retired member 4A. (1) An applicant for registration as a retired member shall submit an application pursuant to section 8A of the principal Act in the form determined by the Institute, which shall include the following information in relation to the applicant — (a) full name; (b) nationality; (c) date of birth; (d) business contact details; (e) personal contact details; (f) legal status; and (g) professional status. (2) The Institute may require an applicant to submit evidence to verify the information in the application or to satisfy the Institute that the applicant meets the professional status requirements and requirements of section 8A of the principal Act. (3) The application under paragraph (1) shall be accompanied by — (a) a declaration that — (i) the application is accurate and complete; (ii) the ethics and continuing professional development requirements of the Institute and the overseas professional accountancy institute have been met; (iii) the applicant is not subject to previous disciplinary action, exclusion from a professional body or bankruptcy and has not been convicted of a criminal offence; and Page 8 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) Regulation 5 (iv) the applicant is in good standing with the applicant’s overseas professional accounting institute; and (b) a waiver and indemnity necessary to enable the Institute to effectively and efficiently discharge its obligations under the principal Act. (4) An application for renewal of registration as a retired member pursuant to section 8A of the principal Act shall — (a) confirm or notify any changes to the information submitted in the original application or last renewal; (b) include an updated declaration that meets the requirements of paragraph (3)(a); and (c) be submitted with the prescribed annual renewal fee by December 31st each year. (5) The Institute may require an applicant to provide supplementary information or clarification of the information provided in an application for registration or for renewal and evidence to support that information or clarification. 5. Application for registration and renewal as an associate member 5. (1) An applicant for registration as an associate member shall submit an application pursuant to section 9 of the principal Act in the form determined by the Institute, which shall include the following information — (a) full name; (b) nationality; (c) date of birth; (d) business contact details; and (e) personal contact details. (2) The Institute may require the applicant to submit evidence to verify the information in the application. (3) The application shall be accompanied with — (a) the prescribed application fee; (b) the name and contact details of a professional person who has worked with the applicant for two years or more, or a person who has been a regular member of the Institute for 5 years or more and is able to confirm the good character of the applicant; (c) a declaration that — (i) the application is accurate and complete; and (ii) the applicant is not subject to previous disciplinary action, exclusion from a professional body or bankruptcy and has not been convicted of a criminal offence; and c Revised as at 31st December, 2023 Page 9 Regulation 6 Accountants (Application for Membership) Regulations (2024 Revision) (d) a waiver and indemnity necessary to enable the Institute to effectively and efficiently discharge its obligations under the principal Act. (4) An application for renewal of registration as an associate member pursuant to section 9 of the principal Act shall — (a) confirm or notify any changes to the information submitted in the application or last renewal; (b) include an updated declaration that meets the requirements of paragraph (3)(c); and (c) be submitted with the prescribed annual renewal fee by December 31st each year. (5) The Institute may require an applicant to provide supplementary information or clarification of the information provided in an application for registration or for renewal and evidence to support that information or clarification. 6. Application for registration and renewal as a student member 6. (1) An applicant for registration as a student member shall submit an application for registration pursuant to section 10 of the principal Act in the form determined by the Institute, which shall include the following information — (a) full name; (b) date of birth; (c) personal contact details; and (d) name of training institute and details of education programme for which enrolled. (2) The Institute may require the applicant to submit evidence to verify information in the application or to satisfy the Institute that the applicant meets the requirements of section 10 of the principal Act. (3) The application shall be accompanied with — (a) a declaration that — (i) the application is accurate and complete; and (ii) the applicant is not subject to previous disciplinary action, exclusion from a professional body or bankruptcy and has not been convicted of a criminal offence; and (b) a waiver and indemnity necessary to enable the Institute to effectively and efficiently discharge its obligations under the principal Act. (4) An application for renewal of registration as a student member pursuant to section 10(4) of the principal Act shall — (a) confirm or notify any changes to the information submitted in the application or last renewal; Page 10 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) Regulation 7 (b) include an updated declaration that meets the requirements of paragraph (3)(a); and (c) be submitted by December 31st each year. (5) The Institute may require an applicant to provide supplementary information or clarification of the information provided in an application for registration or for renewal and evidence to support that information or clarification. 7. Application for licensing and renewal as a practitioner member 7. (1) An applicant for a licence or registration as a practitioner member shall submit an application pursuant to section 11 or 12 of the principal Act in a form determined by the Institute, which shall include the following information — (a) full name; (b) list of all audit firms for which the practitioner member shall perform public practice services; (c) job title and main responsibilities; (d) legal status; and (e) professional status. (2) The Institute may require evidence to be submitted to verify the information in the application or to satisfy the Institute that the applicant meets the professional status requirements and requirements of section 11 or 12 of the principal Act. (3) The application shall be accompanied with — (a) the prescribed application fee; (b) a declaration that — (i) the application is accurate and complete; (ii) the ethics and continuing professional development requirements of the Institute and overseas professional accountancy institute have been met; (iii) the applicant is not subject to previous disciplinary action, exclusion from a professional body or bankruptcy and has not been convicted of a criminal offence; (iv) the applicant is in good standing with the applicant’s overseas professional accountancy institute; and (v) the applicant agrees to participate in the Institute’s quality assurance review process; and (c) a waiver and indemnity necessary to enable the Institute to effectively and efficiently discharge its obligations under the principal Act. c Revised as at 31st December, 2023 Page 11 Regulation 8 Accountants (Application for Membership) Regulations (2024 Revision) (4) The Institute may require an applicant to provide supplementary information or a clarification of the information provided in the application for a licence or for renewal and evidence to support that information or clarification. (5) An application for renewal of a licence or registration as a practitioner member shall — (a) confirm or notify any changes to the information submitted in the application or last renewal; (b) include an updated declaration that meets the requirements of paragraph (3)(b); and (c) be submitted with the prescribed annual renewal fee by December 31st each year. (6) The Institute shall consider the application for a licence or renewal and only approve it if satisfied that the applicant is — (a) sufficiently qualified, competent and capable of carrying on public practice both at the time of the application and for the period of the licence; (b) of good character; and (c) acts in a professional manner and with integrity in the performance of the applicant’s duties as a practitioner member. 8. Continuing obligations of regular, practitioner and retired members 8. (1) Regular members, practitioner members and retired members shall act diligently and in accordance with applicable technical, professional and ethical standards when providing professional services. (2) Regular members, practitioner members and retired members shall maintain their professional knowledge and skill at the level required to ensure that their clients and employers receive competent professional service based on legislative requirements and current techniques and developments in practice. (3) Regular, practitioner members and retired members shall determine what is sufficient and relevant professional knowledge and skill and shall comply with the minimum continuing professional development requirements set out in Schedule 2. (4) The Institute may issue rules to clarify the requirements set out in Schedule 2. 9. Application for registration and renewal as a public practice firm 9. (1) An applicant for registration as a public practice firm shall submit an application pursuant to section 38 of the principal Act in the form determined by the Institute, which shall include the following information — (a) name and address of the firm; (b) name of the managing partner; and Page 12 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) Regulation 9 (c) names and licence numbers of all practitioner members. (2) The Institute may require the applicant to submit evidence to verify the information in the application. (3) The application shall be accompanied with — (a) the prescribed application fee; and (b) a declaration — (i) of compliance with the principal Act and these Regulations; (ii) that all partners, directors and those holding an equivalent position and engaged in public practice are registered as practitioner members; (iii) that the firm requires persons employed in audit or other assurance engagements to maintain competence, complete continuing professional development and comply with ethics, professional conduct and all applicable technical standards; and (iv) confirming participation in the Institute’s quality assurance review program. (4) An application for renewal of registration as a public practice firm pursuant to section 38(5) of the principal Act shall — (a) confirm or notify any changes to the information submitted in the application or last renewal; (b) include an updated declaration that meets the requirements of paragraph (3)(b); and (c) be submitted with the prescribed annual renewal fee by November 30th each year. (5) The Institute may require an applicant firm to provide supplementary information or clarification of the information provided in an application for registration or for renewal and evidence to support that information or clarification. (6) A firm shall not be registered unless the firm has satisfied the Institute that — (a) the firm is able to comply with the provisions of the principal Act, these Regulations and other applicable laws; (b) the firm will implement controls to comply with the requirements of the Proceeds of Crime Act (2024 Revision) and the Anti-Money Laundering Regulations (2023 Revision) where applicable; and (c) it is not against the public interest for the application or renewal to be approved. (7) The Institute may register the firm either unconditionally or subject to such conditions as the Institute considers appropriate, including — c Revised as at 31st December, 2023 Page 13 Regulation 10 Accountants (Application for Membership) Regulations (2024 Revision) (a) limiting the nature and scope of the public practice services which may be carried on by the public practice firm; and (b) specifying the number and type of clients that the firm may service. (8) The Institute may, by notice in writing to a public practice firm, revoke any condition attached to the registration. (9) The Institute shall maintain a register of public practice firms including — (a) ) the business address of the firm; (b) details of any restrictions imposed; (c) the names of practitioner members authorised to provide public practice services on the firm’s behalf; and (d) such other information as the Institute may determine. 10. Continuing obligations of registered firms 10. (1) A registered firm shall maintain in force and comply with the conditions of cover of professional indemnity insurance. (2) A registered firm shall comply with the International Standard of Quality Control issued by the International Audit and Assurance Standards Board. (3) A registered firm shall implement and maintain adequate business continuity arrangements. 11. Notification of changes 11. A registered firm shall notify the Institute of the occurrence of any of the following events within thirty days of the event — (a) resignation or removal of the managing partner; or (b) any change to information provided in the firm’s application or renewal application that may adversely affect the obligations of the firm referred to in regulation 10. 11A. Cancellation or variation of registration 11A. The Institute may cancel the registration of a firm or vary or impose conditions on registration that it determines appropriate as follows — (a) in the event of suspension, revocation or cancellation of all the firm’s licensed practitioners licences; (b) in the exercise of its powers as the assigned Supervisory Authority under section 4(9) of the Proceeds of Crime Act (2024 Revision) with the responsibility of monitoring compliance with money laundering regulations for firms of accountants; or (c) in response to a request by the firm if there are no active licensed practitioners acting as a partner. Page 14 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) Regulation 12 12. Fees 12. The fees payable under the principal Act, subject to any waiver, reduction or deferral of fee payments that the Institute may grant according to section 37 of the principal Act are specified in Schedule 1. c Revised as at 31st December, 2023 Page 15 Accountants (Application for Membership) Regulations (2024 Revision) SCHEDULE 1 SCHEDULE 1 FEES (Regulation 12) Category Application Fee payable on first Annual fee$ grant of registration$ Renewal fee $ Regular Member (regulation 4) 150 nil 150 Associate Member (regulation 5) 150 nil 150 Practitioner Member (regulation 7) 250 4750 5,000 Replacement licence 50 nil nil Public practice firm (regulation 9) 500 1000 1,500 Retired Member (regulation 4A) nil nil nil Student Member – nil nil nil Caymanian/Permanent Resident (regulation 6) Student Member – 75 nil 75 Non Caymanian/Non Permanent Resident (regulation 6) c Revised as at 31st December, 2023 Page 17 SCHEDULE 2 Accountants (Application for Membership) Regulations (2024 Revision) SCHEDULE 2 (Regulation 8) CONTINUING PROFESSIONAL DEVELOPMENT REQUIREMENT 1. Regular members The continuing professional development requirement applicable to a regular member shall be the continuing professional development requirement set by that regular member’s overseas professional accountancy institute. The following continuing professional development requirement shall apply where — (a) the overseas professional accountancy institute’s continuing professional development requirement does not apply to a regular member; or (b) ) the regular member knows that the overseas professional accountancy institute’s continuing professional development requirement is not in compliance with international education standard 7 as issued by the International Accounting Education Standards Board: 120 hours in each three year period ending December 31st 60 of the 120 hours shall be verifiable; and A minimum of 20 hours per year ending December 31st 2. Practitioner members The continuing professional development shall — (a) include an appropriate proportion of continuing professional development in a chosen specialty, (b) result in the maintenance of competence in audit (even if no audit work is currently being undertaken); and (c) be in compliance with international education standard 8 as issued and amended by the International Accounting Education Standards Board. The continuing professional development requirement is: 120 hours in each three year period ending December 31st 60 of the 120 hours shall be verifiable; and A minimum of 20 hours per year ending December 31st Page 18 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) SCHEDULE 2 3. Retired members The continuing professional development requirement applicable to a retired member shall be the continuing professional development requirement set by that retired member’s overseas professional accountancy institute. Where there are no continuing professional development requirements which are either set by that retired member’s overseas professional accountancy institute or applicable to the retired member, the retired member shall complete adequate continuing professional development to undertake the retired member’s role competently and in the public interest. Publication in consolidated and revised form authorised by the Cabinet this 30th day of January, 2024. Kim Bullings Clerk of the Cabinet c Revised as at 31st December, 2023 Page 19 Accountants (Application for Membership) Regulations (2024 Revision) ENDNOTES ENDNOTES Table of Legislation history: SL # Act/Law # Legislation Commencement Gazette 6/2023 Accountants (Application for Membership) (Amendment) 1-Feb-2023 LG8/2023/s2 Regulations, 2023 56 of 2020 Citation of Acts of Parliament Act, 2020 3-Dec-2020 LG89/2020/s1 62/2016 Accountants (Application for Membership) Regulations, 30-Nov-2016 GE95/2016/s3 2016 c Revised as at 31st December, 2023 Page 21 ENDNOTES Accountants (Application for Membership) Regulations (2024 Revision) Page 22 Revised as at 31st December, 2023 c Accountants (Application for Membership) Regulations (2024 Revision) ENDNOTES c Revised as at 31st December, 2023 Page 23 ENDNOTES Accountants (Application for Membership) Regulations (2024 Revision) (Price: $4.80) Page 24 Revised as at 31st December, 2023 c