Institute of Chartered Accountants of the Maldives (ICAM) has announced the issuance of its membership and licensing regulations yesterday. This follows a rigorous stakeholder consultation process conducted over a period of three months following the enactment of the Maldives Chartered Accountants Act.
The membership regulation sets out the eligibility criteria for admission to membership of ICAM, the rights and obligations of ICAM members, and admission and subscription fees for different classes of membership of ICAM. The licensing regulation prescribes the eligibility criteria, the procedures for issuing and canceling licenses to conduct statutory audits and other assurance engagements, CPD and ethical requirements for licensed auditors and audit firms, and sanctions for non-compliance with and breach of applicable laws and regulations by licensed auditors and audit firms.
Prior to the enactment of the Maldives Chartered Accountants Act, licensing of auditors came within the purview of the Auditor General under the Audit Act 2007. ICAM took over from the Auditor General in September 2020 in what marked a new beginning in the statutory auditor regulation in the Maldives. The new licensing regime introduced by ICAM adopts a revolutionary approach to licensing of auditors as it brings an end to issuing licenses to non-citizens of the Maldives to conduct statutory audit and assurance engagements in the Maldives starting from 1 January 2024. The international network firms and local firms operating in the country with licensed partners who are non-nationals of the Maldives are expected to admit Maldivian nationals that meet the eligibility criteria specified in the regulation as partners by the end of 2023.
In a significant departure from the old regulatory regime which has led to the categorization of audit licenses being abolished, ICAM’s licensing regulation focuses on enhancing the quality of audit and assurance services provided by licensed auditors and audit firms through robust monitoring and quality assurance review programs to gain the trust and confidence of regulatory authorities.
ICAM’s membership and licensing regulations have been designed to enable it to discharge its legal mandate under the Maldives Chartered Accountants Act (the Act). ICAM was incorporated under the Act to regulate and develop the accountancy profession in the Maldives.
ICAM states that it will continue to update its stakeholders on future developments.