Financial Reporting Act 2013

External Reporting Board, standards, and provisions that apply to other enactments - Standard provisions relating to auditor qualifications and access to information - Auditor qualifications

36I: Cancellation or suspension of recognition or approval

You could also call this:

"When authorities cancel or suspend a group's or person's special status for not following rules"

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The Institute or another accredited body can cancel or suspend their recognition of you if they think you do not meet their rules. They can do this for the purposes of section 36(1)(a) or (ab) or (c)(ia). You might not meet their rules if you are subject to a special arrangement and you do not follow it.

The Registrar can also cancel or suspend their approval of you or an association. This can happen if you or the association do not meet the requirements for approval. The Registrar can cancel approval for the purposes of section 36(1)(c) or section 36(1)(d).

If the Institute or another accredited body suspends their recognition of you, it can be for a certain period. You might need to meet some requirements before the suspension is lifted. The Registrar can also suspend approval, and this can be for a certain period too.

If you are recognised for the purposes of section 36(1)(f) or (g) and you no longer have a certain type of director, your recognition is treated as suspended. This is until you get another director of that type.

If the Institute or the Registrar cancels your recognition or approval, they can tell you that you cannot apply again for a certain period. You have to follow this notice.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6521219.


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36H: Offence relating to section 36F or 36G, or

"Breaking company rules can lead to big fines for the company and its directors."


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36J: Effect of cancellation or suspension of accreditation or approval on recognition under section 36, or

"What happens to your recognition if an institute or association's accreditation or approval is cancelled or suspended"

Part 2External Reporting Board, standards, and provisions that apply to other enactments
Standard provisions relating to auditor qualifications and access to information: Auditor qualifications

36ICancellation or suspension of recognition or approval

  1. The Institute, any other accredited body, or an approved association may, in accordance with its rules, cancel or suspend its recognition of a person for the purposes of section 36(1)(a) or (ab) or (c)(ia) if the Institute, body, or association considers that the grounds for cancellation or suspension specified in its rules are satisfied.

  2. The Institute or any other accredited body may cancel or suspend the recognition of a person for the purposes of section 36(1)(a) or (ab) if—

  3. the person is or was subject to an arrangement referred to in section 36T; and
    1. the Institute or body is satisfied that—
      1. the person has failed to comply with that arrangement in any material respect; or
        1. the term of the arrangement has ended.
        2. The Registrar may—

        3. cancel or suspend his or her approval of an association for the purposes of section 36(1)(c) if the Registrar considers that the association does not satisfy, or no longer satisfies, the requirements prescribed for the purposes of section 36A(1):
          1. cancel or suspend his or her approval of a person for the purposes of section 36(1)(d) if the Registrar considers that the person does not satisfy, or no longer satisfies, the requirements or minimum standards prescribed for the purposes of section 36A(2)(a) or (b):
            1. cancel or suspend his or her approval of an association or a person for the purposes of section 36(1)(c) or (d) if the Registrar considers that the association or person has failed to comply with any conditions under section 36A(4):
              1. cancel his or her approval of an association or a person for the purposes of section 36(1)(c) or (d) on the written request of the association or person.
                1. The Institute, any other accredited body, or an approved association may—

                2. cancel or suspend its recognition of a person for the purposes of section 36(1)(f) or (g) if the Institute, body, or association considers that the person does not satisfy, or no longer satisfies, the requirements or minimum standards prescribed for the purposes of section 36C(1)(a) or (b):
                  1. cancel its recognition of a person for the purposes of section 36(1) on the written request of the person.
                    1. A suspension under—

                    2. subsection (1), (2), or (4) is for the period that the Institute, accredited body, or approved association thinks fit or until the person satisfies any requirements specified by the Institute, body, or association:
                      1. subsection (3) is for the period that the Registrar thinks fit or until the association or person satisfies any requirements specified by the Registrar.
                        1. If a person that has been recognised for the purposes of section 36(1)(f) or (g) no longer has at least 1 director of the kind referred to in section 36C(1)(c), the recognition is treated as suspended until the person again has at least 1 director of that kind (or the recognition is sooner cancelled).

                        2. If the Institute, an accredited body, an approved association, or the Registrar cancels the recognition or approval of a person (A), the Institute, body, association, or Registrar (as the case may be) may give a written notice to A stating that A may not apply to be re-recognised or re-approved before the expiry of a specified period (and that notice is binding on A).

                        Notes
                        • Section 36I: inserted, on , by section 8 of the Financial Reporting Amendment Act 2014 (2014 No 64).