MALAYSIAN INSTITUTE OF ACCOUNTANTS (DISCIPLINARY) RULES 2002
The Rules particularly spell out the applicable processes and powers of the Statutory Committees i.e. Investigation Committee, Disciplinary Committee and Disciplinary Appeal Board of the Institute as established in the Accountants Act 1967, in executing its roles and functions towards upholding and strengthening the enforcement regimes of the Institute in relation to the disciplinary actions against the members who are found to have committed unprofessional conduct in practicing as a Chartered Accountant in Malaysia.
Citation and commencement
1. (1) These rules may be cited as the Malaysian Institute of Accountants (Disciplinary) Rules 2002.
(2) These Rules come into operation on 1 June 2002.
Interpretation
2. For the purpose of these Rules –
“unprofessional conduct” means conduct which is discreditable to the accountancy profession and includes gross carelessness, neglect and incapacity in the performance of professional duties, impropriety in professional conduct and conduct unbecoming of an accountant;
“person” includes any body of persons, corporate or unincorporated.
Complaints
3. (1) Every complaint against any member shall be addressed in the first instance to the Registrar.
(2) The Registrar shall then refer such complaint to the Investigation Committee once it satisfies the requirements of rule 4.
(3) Where facts are brought to the knowledge of the Council which indicate that any member has done anything which renders an investigation necessary, the Council may instruct the Chairman of the Council or any other member nominated in writing by the Council for this purpose to make a formal complaint to the Registrar who shall refer such complaint to the Investigation Committee.
(4) The member nominated in writing by the Council under subrule (3) shall not be a member of the Investigation Committee, Disciplinary Committee or the Disciplinary Appeal Board.
Complaint in writing
4. (1) Every complaint, other than a complaint made by a Court, made pursuant to subrule 3(1) shall be in writing and shall contain—
(a) the full name, identity card number, passport number or registration number of the complainant;
(b) the facts of the complaint;
(c) the allegations against the member; and
(d) the name or firm of the member.
(2) Every written complaint under subrule (1) shall be supported by—
(a) copies of documents, if any, that are relied upon in support of the complaint; and
(b) a statutory declaration of the facts alleged by the complainant as may be required by the Investigation Committee from time to time.
Investigation
5. The Investigation Committee shall investigate any complaint referred to it under subrules 3(2) and 3(3) and determine whether or not the matter is to be referred to the Disciplinary Committee.
Notice to member
6. (1) Before any complaint is to be investigated, the Registrar shall cause to be posted or delivered to the member against whom the complaint is made—
(a) copies of the written complaint, if any, and all statutory declarations of the facts made in support of the complaint; and
(b) a notice—
(i) setting out any other particulars that may be necessary to disclose the reason for the investigation;
(ii) inviting the member concerned to give a written explanation within a period of fourteen days from the date the notice is served on him to answer the complaint alleged against him; and
(iii) stating whether or not the member concerned wants to be heard by the Investigation Committee.
(2) he investigation shall only commence after the time specified in the notice has elapsed and the Investigation Committee shall give the member against whom the complaint was made reasonable opportunity to be heard if he so desires and shall give due consideration to any explanation he may make.
Powers of Investigation Committee
7. For the purposes of an investigation, the Investigation Committee may—
(a) call upon or employ any person to conduct any preliminary inquiry it deems necessary;
(b) require the member against whom the complaint was made or any other member who can help with the investigation to produce for inspection any books, documents or papers which may be reasonably required by the Investigation Committee or by the person so employed; and
(c) apply to the High Court for an order to enforce paragraph (a) or (b).
Refusal by member is an offence
8. Any member of the Institute who refuses to comply with paragraph 7(b) commits an offence and shall on conviction be liable to a fine not exceeding five thousand ringgit and shall in any event be referred to the Disciplinary Committee by the Investigation Committee.
Proceedings before the Investigation Committee
9. (1) Where the Investigation Committee finds that there are sufficient grounds for disciplinary proceedings to be taken in respect of the member against whom the complaint was made, it shall be the duty of the Chairman of the Investigation Committee to—
(a) refer the complaint to the Disciplinary Committee; and
(b) make a report of the investigation and state the findings of fact to the Disciplinary Committee.
(2) If the Investigation Committee finds that there is insufficient evidence or grounds for disciplinary proceedings to be taken against the member, it shall be the duty of the Investigation Committee to dismiss the complaint and the parties shall be informed accordingly.
(3) The Investigation Committee may dismiss the complaint under subrule (2) without giving any reason for the dismissal.
Procedures of Investigation Committee
10. Subject to the provisions of the Act and the Rules of the Institute, the Investigation Committee shall regulate its own procedures as it deems fit and necessary or desirable for the performance of its duties.
Report made by Investigation Committee
11. If the Disciplinary Committee is of the opinion that the report made by the Investigation Committee is not clear in any particular respect or that further investigation is required, the matter may be referred back to the Investigation Committee to carry out further investigation and to make further report.
Notice to member
12. Upon receiving the report made by the Investigation Committee, the Disciplinary Committee shall cause to be posted or delivered to the member against whom the complaint was made—
(a) a copy of the report made by the Investigation Committee and other documents deemed relevant by the Disciplinary Committee;
(b) a notice of the disciplinary hearing informing the member of the date, time and place where the disciplinary hearing against him shall be conducted;
(c) a notice informing the member that he will be given an opportunity to be heard and to examine or cross examine witnesses; and
(d) a notice to the member that he may, subject to rule 14, be permitted to be represented by an advocate and solicitor or by a member of the Institute.
Absence of parties before Disciplinary Committee
13. If the member against whom the complaint was made fails to appear before the Disciplinary Committee on the date, time and place appointed for the disciplinary hearing without any lawful excuse and the Disciplinary Committee is satisfied that notice of the disciplinary hearing has been given in accordance with paragraph 12(b), the Disciplinary Committee may proceed to hear the complaint in his absence.
Right to representation
14. (1) The member against whom the complaint was made shall inform the Disciplinary Committee in writing at least seven days before the disciplinary hearing on whether or not he intends to be represented by an advocate and solicitor at such hearing.
(2) If the member fails to inform the Disciplinary Committee in accordance with subrule (1) and is represented by an advocate and solicitor at the disciplinary hearing, the Disciplinary Committee shall exercise its discretion as to whether or not to adjourn the hearing to enable the Disciplinary Committee to engage an advocate and solicitor pursuant to rule 15.
(3) The Investigation Committee has the right to appoint a representative or an advocate and solicitor to appear on its behalf at the disciplinary hearing.
Appointment of advocate and solicitor
15. The Disciplinary Committee may appoint an advocate and solicitor who may be present at any disciplinary hearing to advise the Disciplinary Committee.
Oral evidence
16. Evidence before the Disciplinary Committee shall be given orally or, if the Disciplinary Committee considers it necessary for the better consideration of the matter, by sworn affidavits.
Procedures of Disciplinary Committee
17. Subject to the provisions of the Act and the Rules of the Institute, the Disciplinary Committee shall regulate its own procedures as it deems fit and necessary or desirable for the performance of its duties.
Powers of Disciplinary Committee
18. (1) Upon reference of a complaint to the Disciplinary Committee pursuant to subrule 9(1) and after due inquiry has been made in accordance with the provisions of these Rules, it is found that any member of the Institute is guilty of unprofessional conduct, the Disciplinary Committee shall impose any one or any combination of the disciplinary punishments specified in subrule (3).
(2) Where a fact is brought directly to the knowledge of the Disciplinary Committee and after due inquiry has been made in accordance with the provisions of these Rules, the Disciplinary Committee is satisfied that any member of the Institute has—
(a)
(i) unprofessional conduct; or
(ii) an offence involving fraud or dishonesty;
(b) become a bankrupt; or
(c) within three years preceding the date on which the Disciplinary Committee seeks to exercise its disciplinary powers under this rule, individually or as a partner, assigned substantially the whole of his estate for the benefit of his creditors or has under any deed or instrument placed substantially the whole of his estate in the hands of an assignee or trustee for the benefit of his creditors or made any arrangements for payment of a composition to his creditors,
the Disciplinary Committee shall impose any one or any combination of the disciplinary punishments specified in subrule (3).
(3) For the purpose of subrules (1) and (2), the Disciplinary Committee shall have the power to impose any one or any combination of the following disciplinary punishments:
(a) subject to the provisions of subrule (4), order the name of the member to be removed from the register and he shall cease to be a member of the Institute;
(b) subject to the provisions of subrule (4), suspend the member for a period not exceeding three years;
(c) order the practising certificate of the member to be cancelled;
(d) impose upon the member a fine not exceeding five thousand ringgit;
(e) order the member to be admonished, censured or reprimanded;
(f) order the member to pay the Institute such sum it deems fit and reasonable in respect of costs and expenses of and incidental to any disciplinary hearing before the Disciplinary Committee and any investigation conducted by the Investigation Committee; or
(g) order the member to attend a course of instruction approved by the Disciplinary Committee for a period of time to be determined by the Disciplinary Committee.
(4) The provisions of paragraph (3)(a) and (3)(b) shall not apply to the member if an offence has been committed before the date of his registration as a member of the Institute and that the Council is aware of his conviction in respect of that offence before the date of the registration.
(5) No punishment under paragraph (3)(d) shall be imposed if the member has been convicted under any written law by any Court for an offence punishable by imprisonment or fine.
(6) The Disciplinary Committee shall, if requested in writing by the member, review the costs and expenses imposed under paragraph (3)(f) within twenty- one days from the date of such request and the review shall be final.
(7) Any decision made by the Disciplinary Committee under this rule shall be in writing.
Commencement of decision
19. (1) Any decision of the Disciplinary Committee shall commence upon the expiry of twenty-one days from the date the decision is communicated to the member.
(2) If an appeal has been made by any member aggrieved against the decision of the Disciplinary Committee in accordance with the provisions of section 21 of the Act and Part IV of these Rules, the appeal shall operate as a stay of the decision of the Disciplinary Committee unless the Disciplinary Appeal Board orders otherwise.
Suspension period
20. (1) A member of the Institute who is suspended under paragraph 18(3)(b) shall cease to be a member of the Institute and upon expiry of his period of suspension, his rights and privileges as a member of the Institute shall immediately be restored.
(2) The member shall cease to enjoy any benefits conferred by the Institute to its member during the suspension period.
Payment of fees during period of suspension
21. A member, whose membership has been suspended or his practising certificate cancelled, shall continue to pay all fees that are due and payable during the period of suspension or cancellation and be subjected to all the provisions of the Act, rules, by-laws of the Institute and other statutory obligations that are applicable during the period.
Surrender of certificate
22. A member whose name has been removed from the register under rule 6 or 7 of the Malaysian Institute of Accountants (Membership and Council) Rules 2001 [P.U. (A) 343/01] or whose membership has been suspended or practising certificate has been cancelled under these Rules, shall surrender to the Registrar his certificate of membership or practising certificate, as the case may be, within fourteen days from the date of the notification of such removal, suspension or cancellation.
Readmission
23. (1) Any person whose name has been removed from the registrar under rule 18 may apply to the Council after the expiration of not less than five years of the removal of his name from the register for readmission as a member.
(2) Upon receiving an application for readmission under subrule (1), the Council shall exercise its discretion in considering the application and the decision of the Council shall be final.
Court order
24. The Council may apply to the Court for an order to be imposed on any member who fails to surrender the certificate of membership or the practising certificate in accordance with rule 22.
Debt to Institute
25. Every monetary penalty imposed and all costs and expenses payable under these Rules shall be recoverable as a debt due to the Institute.
Right of appeal to Disciplinary Appeal Board
26. (1) A notice of appeal to the Disciplinary Appeal Board shall be in writing and stating the grounds of appeal.
(2) The grounds of appeal shall not be amended except with leave of the Disciplinary Appeal Board.
(3) No appeal shall lie solely on the question of costs imposed pursuant to any decision or order of the Disciplinary Committee.
(4) Before or upon giving the notice of appeal pursuant to subsection 21(1) of the Act, the member who appealed against the decision of the Disciplinary Committee shall pay any and all costs ordered by the Disciplinary Committee under these Rules and failure to do so shall invalidate the notice.
Appeal procedures
27. (1) The Disciplinary Appeal Board shall, as soon as practicable after the receipt of the notice of appeal, give the member who appealed against the decision of the Disciplinary Committee an opportunity to make a written representation within such time as may be prescribed by the Disciplinary Appeal Board.
(2) The Investigation Committee shall then make its written representation to the Disciplinary Appeal Board within such time as may be prescribed by the Disciplinary Appeal Board.
(3) After receiving the written representations or in the event that the member who appealed against the decision of the Disciplinary Committee has failed to submit a written representation, the Disciplinary Appeal Board may, upon being satisfied that subrule (I) has been complied with, proceed to consider the appeal.
(4) The Disciplinary Appeal Board may appoint an advocate and solicitor to assist in any matter relating to the appeal.
Powers of the Disciplinary Appeal Board
28. (1) In considering an appeal, the Disciplinary Appeal Board shall take into consideration the record of the evidence given before and the documents produced to the Disciplinary Committee at the disciplinary hearing.
(2) The Disciplinary Appeal Board may, if it thinks just and necessary, exercise its discretion to request for fresh evidence to be produced.
(3) Upon reaching a decision regarding an appeal the Disciplinary Appeal Board has the discretion to order the decision to commence from the date the decision is made or at a later date to be specified in the order.
(4) A notification of an order made under subrule (3) shall be given to the member who appealed against the decision of the Disciplinary Committee as soon as practicable.
(5) The Disciplinary Appeal Board may order the member concerned to pay the costs and expenses of and incidental to the appeal.
(6) The Disciplinary Appeal Board shall, if requested in writing by the member, review the costs and expenses ordered under subrule (5) within twenty- one days from the date of such request and the review shall be final.
(7) Any costs and expenses ordered by the Disciplinary Appeal Board under subrule (5) shall be paid within twenty-one days of the date of the order and is recoverable as a debt to the Institute in accordance with rule 25.
Procedures of Disciplinary Appeal Board
29. Subject to the provisions of the Act and the Rule of the Institute, the Disciplinary Appeal Board shall regulate its own procedures as it thinks fit and necessary or desirable for the performance of its duties.
Decision of Disciplinary Committee
30. (1) Where the Disciplinary Committee exercises its powers under these Rules against a member which results in a punishment being imposed upon the member under rule 18, and the decision of the Disciplinary Committee has taken effect, the Council shall cause the name of the member who committed the offence and the decision of the Disciplinary Committee to be published in—
(a) the Gazette;
(b) an official publication of the Institute;
(c) the daily newspapers to be determined by the Council; and
(d) any other publications to be determined by the Council.
(2) In addition to subrule (1), the Council shall inform—
(a) all relevant government licensing authorities;
(b) any other association of accountants to which such member is associated with; and
(c) any other body, corporate or unincorporated,
of the decision of the Disciplinary Committee and the disciplinary punishment imposed upon the member.
Order of Diciplinary Appeal Board
31. (1) Where the Disciplinary Appeal Board makes an order pursuant to rule 28 that—
(a) confirms or varies the decision of the Disciplinary Committee, the Council shall, as the case may be, cause the order to be published as soon as practicable and inform the relevant parties; or
(b) reverses the decision of the Disciplinary Committee, no publication or dissemination of information in respect of such order is necessary unless requested for in writing by the member who appealed against the decision of the Disciplinary Committee upon which the Council shall, as soon as practicable, cause such order to be published and inform the relevant parties.
(2) The publication or dissemination of information under subrule (1) shall be in accordance with the provisions of rule 30.
General
Revocation
32. The Malaysian Institute of Accountants (Disciplinary) Rules 2002 [ P.U.(A) 16/2002] are revoked.
Made 5 May 2002[P.P(S)0.381/Sj.1/J1d. 1(34); PN(PU²)229/III] Malaysian Institute of Accountants
Approved.
ABDUL SAMAD BIN HAJI ALIAS,
President,
Malaysian Institute of Accountants.
DR. MAHATHIR BIN MOHAMAD,
Minister of Finance
Act
An Act to provide for the registration of accountants and matters connected therewith.
By-Laws
On Professional Ethics, Conduct and Practice of the Malaysian Institute of Accountants. Amended as at 20 May 2020.
Standards
The Malaysian Approved Standards On Quality Control, Auditing, Review, Other Assurance And Related Services.
