Slap in the face for Institute of Chartered Accountants as auditors go to new 'super-regulator'

Thursday 29th April 2010

The government has signalled its scepticism about the quality of audit services in recent times by reversing an earlier decision and wresting control from the New Zealand Institute of Chartered Accountants.

Commerce Minister Simon Power announced this evening that auditors would be overseen by the new Financial Market Authority.

He had said last October that auditors would be regulated by the NZICA, a private professional body. Tonight’s announcements moves the functions of NZX’s Disciplinary Tribunal to the FMA, which will have powers to recommend and implement new exchange rules, while NZX will continue to implement its own rules.

Without explanation, Power acknowledged the change on auditor oversight, saying: “I have now decided that the oversight function will fit better with the FMA.

“Audit quality is a core element of financial market confidence,” said Power in a speech to the INFINZ annual awards dinner for finance industry professionals in Auckland.

“It would be inconsistent with my consolidation aims to have a significant market-confidence function being carried out by an agency other than the FMA or the Reserve Bank”, which will continue to operate financial market prudential supervision.

The changes are expected to come into force in mid-2012.

Businesswire.co.nz

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