Institute of Chartered Accountants (Amendment) Law

Institute of Chartered Accountants (Amendment) Law A LAW TO AMEND THE INSTITUTE OF CHARTERED ACCOUNTANTS ACT. BE it enacted by the National State Assembly of the Republic of Sri Lanka as follows: Short title. 1. This Law may be cited as the Institute of Chartered Accountants (Amendment) Law, No. 34 of 1975. Replacement of section 4 of Act No. 23 of 1959. 2. Section 4 of the Institute of Chartered Accountants Act, No. 23 of 1959 (hereinafter referred to as the ” principal enactment “) is hereby repealed and the following new section substituted therefor: – “Eligibility for Institute: 4. (1)Subject to the provisions of institute. section 15, the following persons shall be eligible for membership of the Institute:- (i) a person who passes the qualifying examinations for membership of the Institute to be conducted by the Council under this Act and completes a scheme of practical training approved by the Council and for such period as may be prescribed by the Council: Provided, however, that such practical training shall not be restricted to service under a practising accountant; (ii) a person who is a member of any society or institute of accountants by whatever name called and approved by regulations made by the Council as being in the opinion of the Council an association of equivalent status to the Institute: Provided, however, that notwithstanding the approval of any such society or institute the Council may declare that any class or description of members of the society or institute shall not be eligible for membership of the Institute; and (iii) a person who was, at the appointed date, registered as an Auditor under the Companies’ (Auditors) Regulations, 1941. (2) Any regulations made by the Council prescribing practical training for the purpose of paragraph (i) of subsection (1) may contain such special provisions as the Council may deem expedient declaring that a person who had commenced prior to the appointed date or the relevant date and completed or completes, whether prior to or after the aforesaid dates, training as an articled clerk under a practising accountant for such period as may be specified In the regulations shall be deemed to have completed the training prescribed for the purposes of the aforesaid paragraph (i). (3) Any regulations made by the Council by which any society or institute is approved for the purposes of paragraph (ii) of subsection (1) may provide, as a condition of such approval, that a member of such society or institute shall not be eligible for membership of the Institute of Chartered Accountants of Sri Lanka, unless he has undergone such training as approved by the Council for such period as may be specified.”. Amendment of section 6 of the principal enactment. 3. Section 6 of the principal enactment is hereby amended as follows: – (1) by the repeal of subsections (2) and (3) of that section and the substitution therefor of the following new subsections: – ‘(2) Any member of the Institute who satisfies the Council that he has been in continuous practice as an accountant for not less than five years,; whether before or after the appointed date, or partly before and partly after that date, or, who has completed ten years as a member of the Institute, shall on application made to the Council in that behalf on or before December 31, 1985 and on payment to the Council of a prescribed fee be registered by the Council as a Fellow of the Institute and shall be entitled to use the addition ” F.C.A. ” after his name to indicate that he is a Fellow. (3) Any member of the Institute who is not eligible for registration by the Council as a Fellow of the Institute in terms of subsection (2) shall be eligible for registration by the Council as a Fellow of the Institute on passing the Fellowship Examination to be : conducted by the Council and on application made to the Council in that behalf and on payment to the Council of a prescribed fee. Such member shall upon registration by the Council as a Fellow of the Institute be entitled to use the addition ” F.C.A. ” after his name to indicate that he is a Fellow. (4) Every member of the Institute who is not registered under subsection (2) or subsection (3) as a Fellow of the Institute shall be an Associate Member and shall have the right to use the addition ” A.C.A.” after his name to indicate that he is an Associate Member.’; and (2) by the renumbering of subsection (4) of that section as subsection (5). Amendment of section 9 of the principal enactment. 4. Section 9 of the principal enactment is hereby amended by repeal of subsection (2) of that section and the substitution therefor of the following new subsection: – ” (2) It shall be the duty of the Council- (a) to conduct or provide for the conduct of the qualifying examinations for membership of the Institute and to prescribe or approve courses of study for such examinations; (b) to supervise and regulate the engagement, training and transfer of articled clerks who have entered into articles of agreement on or before the relevant date; (c) to supervise and regulate the registration of students and the courses of practical training for such registered students for such period as may be prescribed by the Council; (d) to specify the class of persons who shall have the right to train articled clerks who have entered into articles of agreement on or before the relevant date, and to specify the circumstances in which any person of that class may be deprived of that right; (e) to fix the maximum amount of the premia or fees to be charged from articled clerks who have entered into articles of agreement on or before the relevant date and the conditions subject to which such fees are to be charged; (f) to maintain and publish a Register of members of the Institute and a Register of persons authorized to practise in Sri Lanka as Chartered Accountants; (g) to secure the maintenance of professional standards among members of the Institute and to take such steps as may be necessary to acquaint them with the methods and practices necessary to maintain such standards; (h) to maintain a library of books and periodicals relating to accountancy and to encourage the publication of; such books in Sri Lanka; (i) to carry out and encourage research in Sri Lanka in the subjects of accountancy, audit and other related subjects and generally to promote the education , training and advancement of the registered students and secure the well-being and advancement of the profession of accountants; (j) to approve the scheme of practical training to be followed by the registered students; and (k) to require any institution to provide information to the Council with regard to facilities available for training students in accounting and audit.”. Amendment of lection 21 of the principal enactment. 5. Section 21 of the principal enactment is hereby amended by the addition of the following proviso at the end of subsection (1) of that section: – ” Provided, however, that such certificate to practise shall not be issued to a member of the Institute unless such person has had at least a period of two years’ practical training in a firm of practising accountants after he has passed one of the qualifying examinations prescribed by the Council, ” Substitution of the word ” Sri Lanka ” for the word ” Ceylon “. 6. In the principal enactment, for the word ” Ceylon “, wherever that word occurs in that enactment, there shall be substituted the word ” Sri Lanka ” Interpretation. 7. In this Law, ” relevant date ” means the date on which this Law shall come into operation.