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CA ANZ’s professional conduct and disciplinary process operates under a robust framework to help maintain integrity and trust in the profession, and to serve the interests of members and the public. Kate Dixon and Rebecca Stickney, CA ANZ conduct leaders for Australia and New Zealand respectively, answer some common member questions about the process and outcomes.

When and why does CA ANZ publish disciplinary decision outcomes?

When the Disciplinary Tribunal or Appeals Council finds that a member has committed an offence under the CA ANZ by-laws and NZICA rules, the decision is published on the decisions register and in Acuity. The decision may also be published in other locations, such as local or regional newspapers, and it may be given to other interested parties. The published decision includes the member’s name and location, unless the Disciplinary Tribunal or Appeals Council identifies exceptional circumstances, which may include genuine risk of harm or serious impact on others.

In matters before the Professional Conduct Committee (PCC), only some decisions are published, where the member has agreed to a consent order agreement or given an undertaking to the PCC and the PCC considers publication is in the public interest. The member may be identified in this publication if there are special circumstances for doing so, which are considered on a case-by-case basis. Examples of special circumstances include where there is a firm event, or where the PCC considers it appropriate to inform the public about the member’s conduct.

The New Zealand Institute of Chartered Accountants (NZICA) regulates licensed auditors and licensed insolvency practitioners. Sanctions that reach a certain threshold – such as a consent order agreement at the PCC level or decisions by the Disciplinary Tribunal – are required to be published on a practitioner's licence on a public register.

There may be situations where there are legal prohibitions on identifying a member and the disciplinary bodies must take this into account. Members may make submissions to the disciplinary bodies about publication, including whether or not their name and location is published.

Are all CA ANZ members liable for costs?

The PCC, Disciplinary Tribunal and Appeals Council can require members to pay some or all of the costs involved in investigating and dealing with a complaint and any disciplinary proceedings. PCC costs can range from a couple of hundred dollars through to a few thousand dollars, while Disciplinary Tribunal costs are typically several thousands of dollars, depending on factors such as the complexity of the matter, whether the member cooperates, whether experts are required or if the hearing spans multiple days.

When will a fine be imposed?

Fines or financial penalties may be imposed in several instances, such as where the actions of a member or firm bring substantial discredit; where there is a significant failure to act honestly or with integrity; or where there is a persistent failure to comply with the requirements of CA ANZ or NZICA.

Other instances include where the actions of a member or firm have negatively impacted a client in a significant way; where a member’s conduct towards the investigators or disciplinary panels has been inappropriate; or where the disciplinary bodies consider that it is appropriate to send a message of deterrence.

The PCC can impose a fine of up to $25,000 for individual members or $100,000 for firm events, as part of a consent order agreement. The Disciplinary Tribunal and Appeals Council can impose a financial penalty of up to $50,000 for individual members and $250,000 for firms.

What are the guidelines for imposition of sanctions?

Not every breach of the CA ANZ by-laws or NZICA rules will lead to a finding of an offence or the imposition of a sanction. Factors taken into consideration include the seriousness of a breach, recidivism, and whether or not a member has taken responsibility and accountability for their conduct.

A member’s behaviour during the process is also an important factor. For example, abusive behaviour during the complaint investigation process could elevate an outcome, adding a fine to a censure or, in some cases, membership suspension.

Can I resign my membership if a complaint has been made against me?

The by-laws and NZICA rules state that a resignation does not take effect until it has been accepted by the board/NZICA. Resignations may be declined where a member is the subject of a complaint or a potential complaint or professional conduct investigation, or if matters are already before the disciplinary bodies. Resignations may also be declined if the member has been requested to provide information or if they have given notice of a review or investigation.

Typically, the board/NZICA will not permit a member to resign their membership in instances where they are or may be the subject of a complaint, or where there are matters before the disciplinary bodies.

Take away

Kate Dixon, Australian conduct and discipline manager, and Rebecca Stickney, New Zealand conduct leader, both at CA ANZ contribute their insight to a column published in every Acuity magazine offering ethical and conduct advice to accounting professionals. You’ll find their articles in the quarterly ethics newsletter, or search ‘ethics’ or ‘public interest’ on acuitymag.com.