Malta Institute of Accountant and Malta Bankers’ Association hold webinar on issues affecting banks and practitioners

Representatives from the Malta Institute of Accountants and the Malta Banking Association highlighted the main concerns encountered by Corporate Services Providers acting on behalf of clients, in on online discussion held on February 1.

The webinar explored the theme of “Topical Issues affecting Banks and Practitioners” and identified the major stumbling blocks that often lead to a longer process following requests to open a new bank account.

The event provided a platform for members of the MBA and the MIA to bridge information gaps between banks and Corporate Services Providers on matters such as risk appetite, new banking relationships, and trust between actors.

The exchange of experiences gave members of both organisations a better understanding of key issues and offered general guidance on the procedures adopted by the financial services sector in relation to bank account opening. It also provided a clearer indication of the type of business and characteristics of structures banks are willing to accept, on a sector basis.

The MBA was represented by Maruska Buttigieg Gili (BNF), Kenneth Farrugia, Martin Xerri and Dr. Therisa Borg (BOV), Suzanne Stafrace (HSBC), Ray Formosa (Lombard) and Simon Micallef (APS). They replied to questions from MIA members. The session was moderated by Fabio Axisa, MIA President and Karol Gabarretta, MBA Secretary General.

In a joint statement, the MIA President and the MBA’s Secretary General said: “There is a fundamental need for the MBA and MIA to continue the useful dialogue between banks and practitioners initiated through this webinar. Both of us see and welcome, the possibility that the partnership between the MIA and MBA could extend to the organisation of other events to ensure more comprehensive coverage of some of the key issues identified during this webinar. We also believe that the participants will have found this event to be useful and fruitful.”

Mr Gabarretta added: “I wish to emphasise that the association strongly believes in such events as they provide a very good platform for stakeholders, to discuss and share experiences. The MBA thus looks forward to further collaboration with MIA amongst others, to explore other areas of mutual interest.
Mr Axisa confirmed this and thanked everyone involved in the event. He added that “as the recognised professional accountancy body in Malta, the MIA will continue working closely with the MBA to discuss issues of concern to their respective members and find workable solutions, whilst taking cognisance of any prevailing restrictions.”

Foreign accountants working and residing in Malta can now form part of the Malta Institute of Accountants as International Associate Members or Associate Members.

The Institute has launched the International Associate membership class while widening the criteria for Associate members.

The International Associate Membership programme allows foreign accountancy professionals practicing in Malta who have obtained their warrants from any another country to join the Institute for the first time as International Associates.

Foreign accountancy professionals who have a qualification equivalent to the University of Malta’s Masters degree which is also recognised by the Accountancy Board for the purpose of obtaining the local warrant can join the Institute as Associate members subject that they are members of a professional accountancy/audit body in their country of origin.

More information can be obtained via the following link.

Institute members are entitled to a range of privileges including information services, technical support, discounted fees for CPE events organised by the Institute as well as other discounts and offers available through the MIA Privilege Scheme.

On the 14 Dec 2020 MIA participated in the Anti-tax Avoidance Directive (ATAD) seminar organised jointly by the IFSP, the MIT and the MIA. This saw leading tax practitioners Mr John Ellul Sullivan, Mr Steve Gingell and Mr Craig Schembri discuss the way in which the provisions of the EU’s ATAD are being implemented in a Maltese context.

The virtual 2 hour seminar saw over 200 members from the 3 institutions participate in this interactive webinar, which allowed for participants to ask questions both in advance of the session and during the session.

The EU’s ATAD is part of an international drive towards greater transparency in tax matters. The provisions of the Directive are transposed into local legislation pursuant to S.L. 123.187. The focus of the seminar was on the three specific aspects on the ATAD implementation being the CFC, Exit Taxation and Interest Deduction Limitation rules.

The Malta Institute of Accountants visited PN Leader Bernard Grech to discuss issues of national concern and actions to address them. This was the first meeting between the Institute and the PN since the election of Bernard Grech at its helm.

MIA President Fabio Axisa said that Malta’s reputation is the major challenge the country and the accountancy profession is facing right now, and accountancy professionals are at the forefront to repair it.  Mr Axisa highlighted the Institute’s initiatives in this respect.

“The Institute is not satisfied with the current regulatory infrastructure,” said Mr Axisa, explaining proposals made by the MIA to strengthen the infrastructure surrounding the Accountancy Board. “As the voice of the biggest profession in Malta, we insist on the application of highest standards and expect all regulatory bodies to function effectively, and fairly, with complete autonomy.”

The two delegations discussed the threat of losing USD correspondent banking for our financial services sector and agreed on the pressing need of a national strategic financial services plan that goes beyond the outcome of the Moneyval assessment.

“Malta’s financial market risks becoming isolated in the event of an unsatisfactory Moneyval outcome and without USD correspondent banking,” warned Mr Axisa. “The country’s economy might be severely impacted and the Institute urges the political class to show maturity in building a common front and consensus with respect to the financial services strategy.”

Bernard Grech said that the Nationalist Party has an obligation to hold the government to account, but it wants to work towards a national consensus on the financial services agenda. He said that a common strategy must not stop with political parties and the Institute of Accountants has a key role to play in shaping it.

Fabio Axisa pointed out that the MIA conducts programmes to keep raising the quality of the profession and that action will always be taken against members who misbehave. He said that the absolute majority of its members uphold the highest standards and practitioners are, many times, disproportionately targeted in view of a minor section of the profession.

“We welcome stricter regulations to help restore Malta’s reputation, but all professions, regulatory bodies and authorities need to raise the bar,” said the MIA President. “Ultimately, standards need to be enforced by all concerned and the tone at the top within the governing and regulatory authorities makes a major difference.”

Mr Axisa was accompanied by MIA Vice President David Delicata, Secretary Noel Mizzi, and CEO Maria Cauchi Delia. PN spokesperson for the economy Claudio Grech, spokesperson for financial services Kristy Debono, and general election candidate Graham Bencini also joined the meeting.

The Institute of Accountants adopts a zero-tolerance policy for misconduct by professional accountants. Allegations of improper behaviour, whether through direct or indirect involvement, are immediately investigated by the MIA and disciplinary actions are taken according to the seriousness of the offence. Read more...

In the midst of the COVID-19 pandemic, the Malta Institute of Accountants (the Institute) collaborated with the Association of Chartered Certified Accountants (ACCA) through the Joint Scheme agreement, to deliver a series of two webinars aimed at inspiring students who are on the journey to become professional accountants. Read More...

As part of ongoing collaboration with the different national competent authorities, a meeting was recently held between the Malta Institute of Accountants (MIA) and the Malta Business Registry (MBR). Read More...

The introduction of the Consolidated Group (Income Tax) Rules poses a number of questions to preparers of financial statements, auditors, and other stakeholders. On behalf of its members, the Institute's Financial Reporting Committee, Direct Tax Committee, and Audit & Assurance Committee have been following and contributing to the developments as they emerge. Amongst others, these committees have been coordinating with the CfR on various matters and assessing the accounting implications at both the fiscal unit's consolidated level, as well as at the individual fiscal unit members' level. The Institute is preparing a guidance note that will address:

• the scope of the fiscal unit's consolidated financial statements, setting out what statements and other disclosure notes need to be included within a fiscal unit's special purpose consolidated financial statements (where the fiscal unit is required to prepare special purpose consolidated financial statements because the unit's members differ from the IFRS or GAPSME group for statutory purposes);

• considerations relevant to the recognition, measurement, presentation and disclosure of income tax charges (income) and balances in the fiscal unit's consolidated financial statements, as well as in the parent company's and the other fiscal unit's members' statutory financial statements; and

• the contents of the auditor's report on those special purpose consolidated financial statements, where such consolidated financial statements are prepared.

The Small and Medium-Sized Practices (SMP) Advisory Group has highlighted various challenges which practitioners encounter in the course of their practice. In order to address these concerns, the MIA scheduled a series of meetings with different competent authorities, with the precise objective of addressing practitioners’ concerns. Meetings with the Malta Bankers’ Association and the Commissioner for Revenue were held during the month of September 2020 whilst meetings with the Malta Business Registry and Malta Enterprise are in the pipeline. These meetings serve as a very useful forum for the clarification of concepts, the exchange of ideas and the putting forward of proposals by the Institute to the relevant authorities. Such meetings also serve to enhance ongoing collaboration between the MIA and these authorities.