ASIC remakes ‘qualified accountant’ instrument

ASIC Corporations (Qualified Accountant) Instrument 2026/734 has been remade declaring which members of specified professional bodies are recognised as qualified accountants.

The instrument, made under section 88B(2) of the Corporations Act 2001, sets out which members of professional bodies are recognised as qualified accountants for the purposes of issuing certificates that allow a person to be treated as a wholesale client or sophisticated investor.

The new instrument continues the arrangements previously set out in ASIC Corporations (Qualified Accountant) Instrument 2016/786, with minor updates to the drafting style and the names of foreign professional bodies. The old legislative instrument was due to sunset on 1 October 2026.

According to the new instrument, all persons in the following classes of members of these professional bodies are qualified accountants for the purposes of the act:

1. Any member of CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and Institute of Public Accountants (IPA) who is subject to continuing professional education requirements, and at or about the time of the member’s most recent renewal of membership, has confirmed in writing to the bodies that the member complies with the continuing professional education requirements
2. Any member of CPA Australia who is entitled to use the post-nominals “CPA” or “FCPA”, CA ANZ who is entitled to use the post-nominals “CA” or “FCA”, or any member of the IPA who is entitled to use the post-nominals “AIPA”, “MIPA”, or “FIPA”

Any member of an eligible foreign professional body is also considered a qualified accountant if they have at least three years of practical experience in accounting or auditing, and is providing a certificate for the purposes of paragraph 708(8)(c) or 761G(7)(c) of the Corporations Act to a person who is resident in the same country (being a country other than Australia) as that member.

The instrument has classified the following as eligible foreign professional bodies:

• American Institute of Certified Public Accountants;
• Association of Chartered Certified Accountants (United Kingdom);
• Chartered Professional Accountants of Canada;
• The Institute of Chartered Accountants in England and Wales;
• Chartered Accountants Ireland;
• The Institute of Chartered Accountants of Scotland.

The latest legislative instrument followed the proposal in July by ASIC to remake it for a period of 10 years, with minor amendments to ensure the instrument is up to date and in line with ASIC’s current drafting style. ASIC said the effect of the instrument would remain unchanged when remade.

ASIC invited feedback but received only two submissions, including one from the IPA, which said it supports ASIC’s proposal and agrees with its assessment that the instrument is operating effectively and continues to form a necessary and useful part of the legislative framework.

In May 2024, ASIC proposed introducing penalties and other sanctions into legislation that would apply where an accountant falsely or negligently certifies that a client meets the applicable assets or income tests to be categorised as a wholesale investor. It said this would improve practices and deter misconduct.

The ASIC submission on wholesale investor and wholesale client tests pointed out that the Corporations Act does not currently prescribe penalties or other sanctions for accountants who misuse or inappropriately issue wholesale investor certificates.

However, several industry bodies cautioned the government against the proposal, and instead called on it to abolish accountants’ certificates rather than impose penalties and sanctions.

In 2024, senators said they want to see sanctions applied to accountants previously reported to ASIC over the misclassification of clients as wholesale investors after raising concerns about the level of misuse of the accountants’ certificates in the market.