Legislation designed to cure deficiencies in the Public Accountants Act 1991 -- which regulates the critical accounting sector of the economy -- appears to have become stalled in the Christie administration's legislative pipeline, and Bahamas Institute of Chartered Accountants (BICA) President Darnell Osborne says it needs to be brought forward now. Osborne spoke with Guardian Business about the Bahamas Institute of Chartered Accountants (BICA) Bill, which she said was tabled in the House of Assembly in 2014.

"It is very important that this legislation is passed as soon as possible, because this has resulted in the past of BICA being suspended from the International Federation of Accountants, and it was certainly an embarrassment for our profession to have been suspended. We were one of maybe two jurisdictions in the world," Osborne said. "We were able to have the IFAC lift the suspension by committing to correcting the deficiencies in the legislation. We have to see the legislation come to pass before we report back to the international body."

The institute president stressed that the legislation has been drafted and approved my her membership, as she tried to set the matter in context.

"We've been working assiduously with the legislative reform arm of the Attorney General's Office and we have produced this bill which is supposed to correct several deficiencies in the Public Accountants Act 1991. That was the first Act that was implemented to regulate the accounting profession in The Bahamas," she said. "We have attempted to correct the deficiencies identified by the IMF (International Monetary Fund) Financial Sector Assessment Program (FSAP) Mission to The Bahamas in July, 2012, where they criticized the accounting profession for not being able to discipline and regulate its members properly," Osborne said.

Osborne noted that the IMF report was critical of the disciplinary and regulatory procedures under the 1991 law. In addition, the report also cited the absence of a peer review mechanism -- which Osborne called "the auditors auditing the auditors" -- and, for those reasons taken together, the IMF had recommended that the Securities Commission of The Bahamas take on the role of regulating the accountants. BICA found this position untenable, Osborne said.

"(So under the new Act) any accountants or audit firms preparing audits will now be subject to peer review, and the BICA has a tripartite agreement with the ACCA (Association of Certified Chartered Accountants, a UK body) and the Institute of Chartered Accountants of the Caribbean...to conduct these reviews," Osborne reported.

She also cited the length of time BICA officers serve, which is capped at a year by statute.

"Our membership in the International Federation of Accountants suggests that we should have two-year terms at a minimum, for continuity," the president said.

Osborne also cited inadequate continuing professional development requirements for the industry.

"In the new Act we are correcting that, and we are increasing the number of hours that are needed for continuing professional education in order to comply with international standards"

BICA is the regulatory body of the accounting profession in The Bahamas. It is a statutory body created in the Public Accountants Act 1991 ("the Act") and supported by that Act and various other enabling regulations.

Click here to read more at The Nassau Guardian