Bill raises fidelity levy

Press, 29 October 1977, Page 23

Bill raises fidelity levy

PA Wellington Accountants will have to pay higher fees into their fidelity fund under a bill introduced in Parliament yesterday by the Minister of Finance (Mr Muldoon). At present, a chartered public accountant pays $2O a year into the fund, which is a protection against the loss of clients’ money through malpractice. The New Zealand Society of Accountants Amendment Bill allows the society’s council to raise this amount to $5O.

It also provides for the council to increase from

$2O to $lOO the amount it may levy on chartered accountants in any one year to meet a shortfall in the fund. The conditions under which the levy may be imposed are widened to cover a likely insufficiency as well as an actual insufficiency. Under the present act, annual fees cannot be levied if the fund reaches $200,000. The amendment will remove this limit and the council will be entitled to continue to levy' accountants.

To the Opposition spokesman on Finance (Mr Tizard), Mr Muldoon said that the council would, in

effect, decide when the fund was big enough to stop levying.

“I feel with some certainty the society will not simply bring in extra funds if they do not appear to be necessary,’’ he said. The bill also removes the provision in the present act that a firm cannot have more than 75 partners and increases the number to 120. Mr Muldoon said that there w’ere only one or two firms in New Zealand approaching the 75 limit now.

The bill was being introduced at the request of the society, he said.