ICAM issues membership and licensing regulations

The Institute of Chartered Accountants of Maldives (ICAM) issued its membership and licensing regulations on Wednesday.

The regulations were announced after a rigorous stakeholder consultation process, which was conducted over three months after the ratification of the Maldives Chartered Accountants Act.

According to ICAM, its membership regulation details the eligibility criteria, the rights and obligations of members, and the admission and subscription fees for different classes of membership.

ICAM's licensing regulation prescribes the eligibility criteria, the procedures for issuing and cancelling licences to conduct statutory audit and other assurance engagements, the CPD and ethical requirements for licensed auditors and audit firms, as well as sanctions for non-compliance with and breach of applicable laws and regulations by licensed auditors and audit firms.

Previously, the licensing of auditors fell under the jurisdiction of the Auditor General as per the Audit Act. ICAM took over the mandate after the Maldives Chartered Accountants Act came into effect this year.

ICAM stated that its new licensing regime is "revolutionary", as it will halt issuing licences to non-citizens of Maldives to conduct statutory audit and assurance engagements in the country, starting from January 1, 2024.

Accordingly, all international network firms and local firms operating with licensed partners who are non-nationals of Maldives are expected to admit Maldivian partners by the end of 2023.

"ICAM’s licensing regulation focuses on enhancing the quality of audit and assurance services provided by licensed auditors and audit firms through a robust monitoring and quality assurance review programmes to gain the trust and confidence of regulatory authorities", said the institute.

President Ibrahim Mohamed Solih established ICAM on September 13, as mandated by the Maldives Chartered Accountants Act (13/2020), to regulate and develop accountancy profession in Maldives.

ICAM's mandate includes formulating standards for auditing and accounting in the private sector, regulating and monitoring the work of private sector accountants and auditors, setting valuation guidelines and providing accounting related assistance to the public sector as well as technical services such as certification, education and training.