The Cayman Islands Institute of Professional Accountants has welcomed provisions included in the Accountants (Amendment) Bill, 2022, which updates certain legislative references and definitions, to enhance the administration of the legislation.
Ensuring clarity in legal definitions, and allowing additional licensing conditions for public accountants, are two of three key provisions of the bill.
The third provision expands CIIPA’s membership categories.
CIIPA, which regulates the accounting profession, led the effort to initiate the changes and worked together with the Ministry of Financial Services on the legislation.
“We appreciate the opportunity to collaborate with the Ministry of Financial Services on this bill as well as working together on future necessary amendments,” CIIPA Chief Executive Officer Sheree Ebanks said.
“CIIPA’s input stemmed from its members’ vast experience and knowledge. CIIPA is also thrilled to formally recognise our retired members who have contributed significantly to the development of the profession and the financial services generally. We look forward to the Bill’s passing as it will allow CIIPA to more effectively, efficiently and equitably act in its role of industry regulator for the Cayman Islands,” she added.
Clarity
Limited Liability Partnerships (LLP) in the Cayman Islands can be used to structure professional businesses, including accounting firms. Accordingly, the Accountants (Amendment) Bill, 2022 takes the step to include LLPs in its definition of “firms of public accountants”.
Conditional licensing
The bill broadens CIIPA’s scope to issue public accountant licences with conditions. The Accountants Act currently allows conditions to be attached only in relation to limited duration, as temporary licences for persons on temporary work permits.
By broadening the scope, CIIPA would be able to issue licences with conditions under other circumstances – for example, when a new practitioner has experience that would be sufficient for simple engagements, but not for complex or public interest entity engagements.
Deregistration
Currently, deregistration happens only when a sole practitioner or relevant firm fails to renew its licence. The bill proposes to allow a sole practitioner or relevant firm to also surrender its licence, and for CIIPA to cancel registrations under appropriate circumstances, as well.
CIIPA memberships
CIIPA said it is eager to become more inclusive in its membership offerings. In addition to recognising retired members, student membership would now be open to anyone legally residing in Cayman who is pursuing a professional accounting qualification.
A proposed new CIIPA membership category for retired members would recognise their contributions to the accounting profession during their careers; and provide them with opportunities to contribute and stay engaged with the profession, by sharing their professional and life experience.
A student membership category already exists, but the bill would allow all persons who legally reside and work here, and who also are pursuing a professional accounting qualification, to apply for membership.
The bill will be presented to Parliament by the Minister of Financial Services and Commerce, André Ebanks.
“CIIPA has worked collaboratively with the Ministry to ensure that the accounting regulatory regime is clear across multiple pieces of legislation, and that it’s sensible and fair in its oversight of practitioners,” he said in a press release.
“I also appreciate CIIPA’s recognition that wisdom from retired members of the profession, and the fresh perspectives from those entering the ranks, will help strengthen the local discipline of accounting.”
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