ACCOUNTANCY PROFESSION  _g S.L.281.01 1
SUBSIDIARY LEGISLATION 281.01
ACCOUNTANCY PROFESSION REGULATIONS
15th April, 1987
LEGAL NOTICE 29 of 1987, as amended by Legal Notice 199 of 1996.
Title.
Profession Regulations.
Interpretation.
Cap. 281.
Cap. 386.
Companies Act;
"warrant holder" means a person who has been issued with a
warrant to practice the profession of accountant or a warrant to act
as auditor.
Work which can 
only be performed 
by warrant holder.
3. (1) No person other than a warrant holder may perform the
work or render the services listed in subregulation (2).
(2) ( a ) Cash or profit projections or feasibility studies which
are prepared either for investment promotion or in
connection with an application for finance or for
financial or other assistance;
( b ) share valuations and valuations of businesses;
( c ) the reporting on accountancy matters in prospectuses
issued for public subscription;
( d ) the certification and issue of periodical or final
accounts other than accounts for internal purposes;
Cap. 386.
Companies Act;
Cap. 123.
( f ) computations and returns for the purposes of the
Income Tax Act, relating to companies other than
private and exempt companies in terms of the
Companies Act;
( g ) liquidation of a company.
(3) Any person who acts in contravention of the provisions of
this regulation shall be guilty of an offence and shall on conviction
be liable to a fine ( multa ) of not more than five hundred liri.
Cases where 
warrant holder may 
not act as auditor.
4. (1) A certified public accountant and auditor may not act
as an auditor -
( a ) if within the proceeding two years or at any time in the
course of carrying out an audit for a client, he or his
partner or employee has performed or had the power to
perform executive functions or has taken or has had
the power to take executive decisions in respect of the
affairs of the client; or
2 _g S.L.281.01 ACCOUNTANCY PROFESSION 
( b ) he holds a direct or indirect interest in the affairs of the
client whose accounts he is to audit, other than for the
remuneration due to him for his services.
(2) Any person who acts in contravention to this regulation
shall be guilty of an offence and shall on conviction be liable to a
fine ( multa ) of not more than one thousand liri.
Where warrant 
holder may not act 
as liquidator.
5. (1) No warrant holder may act as liquidator of a company
if he has held an appointment with or in connection with that
company, at any time during the two years prior to the date on
which the company goes into liquidation.
(2) Any person who acts in contravention to this regulation
shall be guilty of an offence and shall on conviction be liable to a
fine ( multa ) of not more than one thousand liri.
Guidelines.
Amended by:
L.N. 199 of 1996.
6. (1) The Accountancy Board may with the approval of the
Minister issue guidelines to warrant holders concerning:
( a ) professional independence of warrant holders;
( b ) the confidentiality of information obtained by a
warrant holder or his employees in connection with
work performed or services rendered in connection
with the accountancy profession;
( c ) advertising and publicity by warrant holders;
( d ) obtaining professional work;
( e ) the criteria concerning the charging of fees;
( f ) clients’ accounts and monies held on behalf of clients
and third parties; and
( g ) the professional conduct of accountants and auditors.
(2) Guidelines issued in terms of subregulation (1) shall -
( a ) be published in the Gazette; or
( b ) be published by the Ministry of Finance in a separate
publication and the fact of publication thereof shall be
notified in the Gazette together with information as to
where the said publication may be viewed or copies
thereof obtained by the public.
(3) Guidelines issued in terms of this regulation shall not
become operative before the lapse of one week from the publication
in the Gazette made in terms of subregulation (2)( a ) or ( b ).
Indemnity 
insurance.
7. Every person who, and every partnership under article 10
of the Act which, is required to be covered by an indemnity
insurance policy in terms of article 11 of the Act shall be so
covered throughout the currency of the insurance policy for a
minimum amount of twenty-five thousand liri (inclusive of costs to
defend the claim) in respect of each warrant holder practicing other
than in a partnership and twenty-five thousand liri (inclusive of
costs to defend the claim) in respect of each warrant holder forming
a partnership:
Provided that a sum not exceeding four  per centum  of the
amount of cover may be deductible by the insurance company on
ACCOUNTANCY PROFESSION  _g S.L.281.01 3
each and every claim covered by a policy.
Procedure in 
enquiries.
8. The Accountancy Board shall in any enquiry for the
purposes of article 14 of the Act follow the procedure set out in the
rules of procedure set out in Schedule.
SCHEDULE
(Regulation 8)
Rules of Procedure
Citation.
Rules of Procedure.
Interpretation.
Cap. 281.
"appropriate warrant" means the warrant of certified public
accountant or the warrant of certified public accountant and
auditor, as the case may be;
"Board" means the Accountancy Board established by the Act;
"Chairman" means the Chairman of the Accountancy Board and
includes, in the case of absence of the Chairman from a meeting of
the Board, the member acting as chairman for that meeting;
"charge" means a charge specified in a notice of inquiry;
"notice of inquiry" has the meaning assigned to it in rule 5(1);
S.L.281.01
"warrant holder" has the same meaning as is assigned to it in the
Accountancy Profession Regulations, and references to the warrant
holder, in relation to any complaint or information or to any
proceedings, are references to the warrant holder against whom a
complaint or information is sent to the Board;
"Secretary" means the Secretary of the Accountancy Board
appointed in accordance with the provisions of article 6(5) of the
Act.
Application of 
rules.
3. A warrant may only be suspended or revoked in terms of
article 14(1)( a ) or (2)( b ) of the Act in consequence of an inquiry
held in accordance with the provisions of these rules, into the
charge or charges formulated in a notice of inquiry served in
accordance with the provisions of these rules on the person against
whom the charge or charges is or are made.
Complaint and 
information.
4. (1) Where -
( a ) a complaint in writing on the conduct of a warrant
holder has been sent to the Board by the Minister or by
any member of the Board or by any body or person, or
information in writing as to the conduct of a warrant
holder has been sent to the Board by a person acting in
a public capacity, or
( b ) a complaint in writing that a warrant holder is unfit to
continue to practice his profession on grounds of
4 _g S.L.281.01 ACCOUNTANCY PROFESSION 
mental or physical infirmity is sent to the Board by the
Minister or by any member of the Board or by any
body or person, or information in writing as to the
unfitness of a warrant holder to continue to practice
his profession on the grounds aforesaid is sent to the
Board by a person acting in a public capacity,
the Secretary shall submit the complaint or information to the
Chairman.
(2) In so far as a complaint relates to conduct or unfitness on
grounds of infirmity it shall not proceed further unless and until it
has been confirmed by means of a declaration on oath; and every
such declaration -
( a ) shall state the address and description of the declarant,
and
( b ) if any fact declared is not within the personal
knowledge of the declarant, shall state the source of
the declarant’s information and the grounds for his
belief in the truth of the fact.
(3) Subject to the provisions of sub-rule (2), the Chairman
shall direct the Secretary to notify the warrant holder of the receipt
of the complaint or information stating the substance thereof and
sending to the warrant holder a copy of any declaration on oath
furnished under sub-rule (2), and to invite the warrant holder to
submit to the Board, within such date as the Chairman shall
determine, any explanation which the warrant holder may have to
offer; and every such explanation must be in writing and must
reach the Secretary within the time fixed by the Chairman:
Provided that in so far as a complaint or information relates
to conduct, if it does not appear to the Chairman that a question
arises whether the said conduct constitutes any of the acts or
omissions referred to in article 14(1)( a ) of the Act, he shall direct
the Secretary to refer such complaint or information to the Board
either to decide that the complaint or information need not proceed
further or to direct the Secretary to notify the warrant holder in
accordance with the provisions of this sub-rule.
(4) Subject to the foregoing provisions of this rule, the
Chairman shall direct the Secretary to refer for enquiry a complaint
or information to the Board together with any explanation then
furnished by the warrant holder and any declarations on oath
furnished under sub-rule (2).
(5) In this rule, the expression "person acting in a public
capacity" means an officer of a Government Department or public
authority acting as such, or any person holding judicial office or
any officer attached to a court.
Notice of inquiry. 5. (1) As soon as may be after a complaint or information has
been referred to the Board under the foregoing provisions and
unless the Board is fully satisfied with the written explanation of
the warrant holder, the Secretary shall serve on the warrant holder
notice (in these rules referred to as "a notice of inquiry") which
shall -
ACCOUNTANCY PROFESSION  _g S.L.281.01 5
( a ) specify, in the form of a charge or charges, the matters
into which the inquiry is to be held, and
( b ) state the day, time and place at which the inquiry is to
be held.
(2) The inquiry shall not be fixed for any date earlier than
eight days after the date of service of the notice of inquiry on the
warrant holder.
(3) The Secretary shall cause such service to be effected either
personally on the warrant holder, or by the delivery of such notice
at his place of residence.
(4) A notice of inquiry shall be in the form set out in Form A
contained in the Appendix to these rules, with such variations as
circumstances may require.
(5) There shall be sent with any notice of inquiry a copy of
these rules.
(6) A copy of the notice of inquiry shall be served on the
complainant or the informer.
Day and time of 
inquiry.
6. The Chairman shall appoint the day and time for the
holding of an inquiry.
Defective notice.
Chairman, or at any stage of the hearing it appears to the Board,
that a notice of inquiry is defective, the Chairman or the Board, as
the case may be, shall give directions for the amendment of the
notice as may be necessary unless, having regard to the merits of
the case, the required amendments cannot be made without
injustice.
(2) Where in the opinion of the Chairman or of the Board it is
expedient, in consequence of the exercise by him or it of the
powers conferred by sub-rule (1), that the inquiry should be
postponed or adjourned, the Chairman or the Board, as the case
may be, shall give such directions in that behalf as appear
necessary.
Public 
proceedings.
8. Proceedings before the Board shall be held in public; the
Board may, however, when it considers it necessary or expedient,
order that the proceedings be held in private.
Abstention or 
challenge.
Cap. 12.
9. (1) Any member of the Board and the Secretary shall
abstain from taking part in any inquiry or may be challenged in any
of the circumstances in which a judge would abstain or may be
challenged in accordance with the provisions of section 734 of the
Code of Organisation and Civil Procedure.
(2) Any such challenge shall be made before the reading out
by the Secretary of the charge or charges to the warrant holder,
unless the cause of the challenge arose or came to the knowledge of
the party later. 
(3) The Board shall decide the objection previously to the
reading of the said charge or charges, or later in appropriate cases,
and its decision shall be final.
6 _g S.L.281.01 ACCOUNTANCY PROFESSION 
Legal and other 
assistance.
10. (1) Any party to the proceedings before the Board may be
assisted by an advocate or legal procurator. The warrant holder may
also be assisted by another warrant holder.
(2) The Chairman shall bring the provisions of these rules to
the notice of any party to the proceedings appearing before the
Board without any such assistance.
Reading of charge. 11. The proceedings on the inquiry shall commence with the
reading out by the Secretary of the charge or charges. Thereupon
the Chairman shall put to the warrant holder the question whether
he admits or refutes the charge or charges.
Admission or 
refutation.
12. (1) If the warrant holder admits the charge or charges the
Board may, in its discretion, dispense with the production of
witnesses and proceed to give its decision on that day or on any
other day appointed for the purpose.
(2) If the warrant holder refutes the charge or charges the
Board shall proceed with the inquiry.
(3) If the warrant holder fails to attend without just cause and
the Board is satisfied that a notice of inquiry was served as required
by these rules, the Board may, if it thinks fit, proceed with the
inquiry even in his absence:
Provided that if the warrant holder is unable to attend for a
just cause, he may, if he so prefers, request that the inquiry be
proceeded with and appoint one of the persons mentioned in rule
10(1) to represent him in the proceedings.
Proceedings. 13. The proceedings on an inquiry shall be as follows:
( a ) Witnesses in support of the charge shall be produced
and examined by the party producing them or in his
absence by the Board and cross-examined by the
warrant holder; thereafter any member of the Board
may put questions as he may deem necessary.
( b ) Witnesses in defence shall be heard and in case the
warrant holder wishes to give his evidence, he may do
so provided that his evidence shall be given before that
of any witness to be produced by him. Witnesses shall
be examined by the warrant holder or by the person by
whom he is assisted or represented and
cross-examined by any other party to the proceedings;
thereupon any member of the Board may put questions
as he may deem necessary.
( c ) When the whole of the evidence has been concluded,
the warrant holder may, personally or through the
person by whom he is assisted or represented, address
the Board and make his defence.
( d ) The Board shall then give its decision on that day or on
any other day appointed for the purpose.
( e ) The Board shall not be debarred at any stage of the
proceedings until the decision is given from
re-examining any witness or requesting the production
of any documents.
ACCOUNTANCY PROFESSION  _g S.L.281.01 7
Charge not proved.
charges have or have not been proved, the Board shall decide
accordingly and it shall record a finding that the charge or charges
have or have not been proved and that the warrant holder is or is
not guilty in respect of the matters to which the charge or charges
relate.
Decisions public 
and in writing.
15. (1) The decisions of the Board shall be given in public and
in writing; they shall be signed by the Chairman.
Decisions to be 
forwarded to 
Minister.
(2) The original shall be forwarded by the Secretary, to the
Minister together with the complete record of the inquiry.
(3) The Minister shall upon receipt of the decision from the
Board decide as to whether to confirm or otherwise the finding of
the Board and whether the warrant of the warrant holder is to be
suspended, revoked, cancelled or otherwise:
Provided that the Minister shall always confirm the
decision of the Board where this finds that the charge is not proven.
Validity of 
proceedings.
16. Where under any of the foregoing provisions of these rules
the inquiry stands postponed to a future meeting, the validity of the
proceedings at that meeting shall not be called into question by
reason only that members of the Board who were present at the
former meeting were not present at the later meeting or that
members of the Board who were present at the later meeting were
not present at the former meeting.
Copy of decision.
holder a copy of the decision of the Board.
Form of summons 
to give evidence.
18. Notice to any person to appear before the Board to give
evidence and/or produce documents shall be in the form set out in
Form B contained in the Appendix hereto.
Signature and 
service of 
summons.
19. Every notice referred to in these rules shall be signed by
the Chairman.
Power of Board.
proceedings -
( a ) to maintain good order, and
( b ) regulate the discussion.
Confidential 
discussions.
21. The members of the Board and the Secretary shall not
divulge anything discussed by the Board in the course of an
inquiry.
Other proceedings.
Cap. 273.
22. (1) The provisions of the Inquiries Act shall apply to the
Board in any inquiry held according to these regulations.
(2) Subject as otherwise expressly provided and in particular
to sub-rule (1), the Board shall regulate its own procedure.
8 _g S.L.281.01 ACCOUNTANCY PROFESSION 
APPENDIX
Rules 5(4), 18
FORM A
ACCOUNTANCY BOARD
Notice of Inquiry
To ........................................................................ (date)
I hereby give you notice that the Accountancy Board has ordered
an inquiry to consider and judge the charge/charges imputed to you,
namely ...........................................................................................
You are hereby informed that the first sitting of the said inquiry
will be held on ................... the ........................ at .........................
A copy of the Accountancy Profession Rules of Procedure is
enclosed for your guidance.
You are warned that failure on your part to appear without giving
a reasonable explanation for your absence would not debar the
Accountancy Board from proceeding with the inquiry in your
absence.
Chairman
Accountancy Board
FORM B
ACCOUNTANCY BOARD
Notice to a Person to give Evidence and/or
to produce documents, etc.
To ................................................................ (date).
You are hereby required to attend before the Accountancy Board
on ............................ the .................................. at ................... and
so on any other day to which the hearing may be put off, to give
evidence and/or to produce the following documents: .....................
.......................................................................................................
in the matter of an inquiry held against ...........................................
You are warned that failure to attend as hereby required will
expose you to sanctions prescribed by law.
Chairman
Accountancy Board
