Senate: 59-year-old ICAN Act Pass Second Reading
The 10th senate has presented amendments to the Chartered Institute of Accountants of Nigeria (ICAN) Act scaled the second reading yesterday at the Senate.
The proposed legislation, among others, seeks to increase fines payable by a member upon conviction on indictment from N1,000 to N500, 000.00 (N.5m).
In the presentation of the general principles of the Bill by its sponsor, Senator Solomon Adeola (APC, Ogun West), said the ICAN Act came into effect on September 1, 1965, about 59 years ago.
The Ogun West senator said the ICAN Act empowered the institute to set standards and regulate the practice of Accountancy in Nigeria, in line with developments in the economy and changing needs of chartered accountants.
He said it had become imperative to amend certain provisions of the Act and insert new provisions to bring it up to current realities.
This development, Adeola said, would ensure that ICAN remains adaptive, forward-thinking, and attuned to the needs of the nation.
The Ogun West senator said all sections for amendment deal with issues of accounting practice and all areas that a chartered accountant is entitled to practice under the Act.
“Corporate governance of modern professional accountancy organisations has evolved, hence the need to amend parts of sections 2, 3 and 6 and inserting new sections 24 to 26.
For instance, Section 3 of the Act is proposed for amendment because the Council of ICAN started off with a 20-member structure in 1965 when membership was just 250.
“The number was increased to 25 subsequently in accordance with the provisions of the Act with membership strength of over 53,000 today,
“The need to increase the membership of the Council to 36 has become compelling,” he said.Adeola said the amendment would strengthen ICAN’s collaboration with other professional bodies and regulatory authorities at home and abroad.
He said the collaborations would foster synergy, knowledge exchange, and harmonisation of standards, guaranteeing that Nigerian chartered accountants remain at par with global best practices and their global counterparts.
Adeola also said there was a need to enhance the capacity of the institute to carry out its mandate in the area of regulation and compliance.
