Summary

• General amendments to align conduct and discipline rules in the By-Laws and NZICA Rules

  The proposed changes will replace existing Section 5 of the By-Laws and Rule 13 of the NZICA Rules with a single aligned and restructured rule set (the Conduct Rules) that incorporates the procedural and efficiency enhancements and additional rights for Members that were recommended by the Review, including: aligned Disclosure, Offence and Sanctions provisions, a conciliation process, express Members’ rights to be legally represented at Case Conferences before the Professional Conduct Committee, discretion for the Disciplinary Tribunal to award costs in favour of a Member who is entirely successful in defending proceedings, clearer confidentiality and publication provisions, clearer interim suspension rules and Members’ rights to be notified of all complaints (including dismissed complaints), which currently only applies under the NZICA Rules.

  The proposed changes also build on the existing provisions that make each Member who is a Principal of a Practice Entity responsible for notifying the Professional Conduct Committee of certain conduct of that Practice Entity (Firm Events) and liable for a sanction. The changes propose efficiency enhancements that allow any Member who is a Principal of the relevant Practice Entity, and who is authorised to act on behalf of their fellow Principals, to submit a single notification to the Professional Conduct Committee and to represent their fellow Principals at Case Conferences and throughout the disciplinary process.

  The provisions in the new Section 5 of the By-Laws and new NZICA Rule 13 that Members may want to specifically consider and vote on, such as the new provisions in Section 5 which establish jurisdiction over former Members for serious misconduct occurring during membership, are excluded from the general resolution and are subject to separate approval under separate resolutions.

• New General Offences for Misconduct and Conduct Unbecoming of a Member (By-Laws only)

  The changes seek to align the By-Laws with the NZICA Rules by creating two new general offences of ‘Professional Misconduct’ and ‘Conduct Unbecoming of a Member’ which are general descriptors used to distinguish serious from less serious misconduct, respectively.

• Stronger investigation powers for the PCC (By-Laws and NZICA Rules)

  The changes will give the Professional Conduct Committee power to make a request for information and documents required for an investigation about a Member from any Member and to interview complainants and others relevant to an investigation.

• Increased Fines for Members as Principals of Practice Entities (Firm Events), Practice Entity Members and Non-Member Practice Entities (By-Laws) and introduction of these concepts into the NZICA Rules

  The changes will increase the maximum fines that may apply to the Members (collectively) who are the Principals of a Practice Entity that has experienced a Firm Event from $25,000 at the Professional Conduct Committee to $100,000 and from $50,000 at the Disciplinary Tribunal level to $250,000, to reflect the significant reputational impact that misconduct by Practice Entities can have on our profession. For consistency, the maximum fines for Practice Entity Members and Non-Member Practice Entities are also proposed to be increased. The disciplinary bodies are required to consider the number of Members who are Principals in the Practice Entity, and the size of the Practice Entity Member and Non-Member Practice Entity, when calculating a fair and appropriate fine. The above concepts will also be introduced into the NZICA Rules.

• Former Member Jurisdiction (By-Laws only)

  The proposed changes seek to align the By-Laws with the NZICA Rules by providing that any Member who has ceased to be a Member will remain subject to the Conduct Rules in respect of serious misconduct occurring whilst in membership.

• New Sanction (By-Laws only)

  The changes seek to align the By-Laws with the NZICA Rules by enabling the Professional Conduct Committee to propose, and the Disciplinary Tribunal to impose, orders that the Member be required to refund fees paid by a complainant or to waive fees owed by a complainant.

• Extending the Board’s powers to exclude a Member for failure to comply with disciplinary sanctions (By-Laws and NZICA Rules)

  The Board may exclude a Member from membership for the reasons currently set out in By-Law 23. The proposed change will allow the Board to exclude a Member from membership if the Member refuses or fails, without just cause, to comply with a disciplinary sanction imposed under Section 5 of the By-Laws or Rule 13 of the NZICA Rules.

• Introducing optional firm membership in New Zealand

  The proposed change introduces the concept of voluntary Practice Entity Membership in New Zealand.  It aligns the NZICA Rules with the By-Laws, ensuring that New Zealand Practice Entities have the same membership opportunities as their Australian counterparts.

• Eligibility to stand for election to and remain on Regional Council (By-Laws)

  Amendments to clarify the existing provisions relating to eligibility to stand for election and to remain on Regional Council (By-Laws only)

  These changes include:

  • removing the reference to ‘resident’ in By-Law 90 to make it clear that eligibility to stand for election to a Regional Council is not conditional on being a resident in the Region but rather on being validly registered on the Regional Register in accordance with existing By-Laws 142 and 143 which make the place of business or principal place of business the key address for registration on a Regional Register, with residential address being relevant only if the Member has no place of business;
  • deleting provisions that make residing in the Region a condition of an elected Councillor’s right to remain on a Council; and
  • inserting new provisions to give Regional Councils the right to resolve to remove a Councillor who materially fails to fulfil their duties as a Regional Councillor.
• Typographical, editorial and minor drafting changes (By-Laws and NZICA Rules)

  Editorial Amendments

  It is proposed that a number of editorial, typographical and clarificatory amendments to other sections of the By-Laws and NZICA Rules be made, including deleting some provisions from the New Zealand Appendix on the basis that they are to be inserted into a new Appendix in the NZICA Rules.