In my previous address, I had highlighted the eventful and challenging times which were being faced by our profession in view of our country’s perceived reputation in international circles and the potential impact of the MONEYVAL assessment on business in general.  In the meantime, these challenges have unfortunately become even more amplified with the outbreak of COVID-19.  However, our profession is unique and resilient; we will overcome this.

During the past weeks, the Institute has worked proactively, relentlessly and in a determined manner, to address pandemic-associated risks. Our aim was to provide members with timely and relevant support.  We recommended that all members stay focused and take all necessary health precautions, but also appealed to all practices to focus on business continuity.

Most of our members quickly adapted to alternative working practices and resorted to technology to communicate effectively.  We have demonstrated how capable the profession is of adapting and learning to overcome a challenge.

The Institute has also taken steps to reorganise itself, with the least possible disruption to members. The offices remain closed and staff are working remotely, while scheduled crowd gathering events and conferences have been cancelled or postponed.

All initiatives undertaken during this period continue being driven by the five pillars at the core of the MIA's strategy. 

The MIA as a home to all qualified professional accountants
The Institute continuously kept in touch with its members and provided daily development updates, as well as direct support. A survey was conducted to evaluate the impact of the outbreak on our profession and this will be repeated over time to continue monitoring the impacts.
Unfortunately, feedback indicates that several members are already experiencing operational or financial difficulties. This feedback was used to shape the Institute’s representations and recommendations to Government and other relevant stakeholders. Our aim is to work relentlessly to understand members’ concerns, and we will not rest our case until specific measures are implemented to address profession-specific circumstances and difficulties.  

Fostering collegiality and comradeship among accountants and striving to make the Institute's voice heard, loud and clear
Businesses and public institutions now require the professional advice of accountants, auditors, and financial consultants more than ever, as economic pressures and uncertainty pile up. The Institute’s unique role is that of acting as a facilitating intermediary between the profession and regulators, stakeholders.  Through effective interaction we have influenced outcomes, supporting members and stakeholders throughout this period.

In fact, the Institute has been working closely with stakeholders including the MFSA, the FIAU, the Malta Gaming Authority and the Malta Business Registry to reassess obligations, such as reporting deadlines and submission timeframes, that affect multiple sectors of regulated entities.  We have been instrumental in communicating concerns to regulators and stakeholders, proposing alternative arrangements, assisting in the decision-making process and communicating to you in a clear and timely manner all developments in this respect.

The Institute also held intensive talks with the Commissioner for Revenue (CfR) to discuss deadlines for submissions and settlements for direct and indirect tax matters, that are due in the coming weeks. Meanwhile, the CfR sought the Institute’s advice on the proposed mechanism for COVID related fiscal measures announced by Government. MIA delivered detailed technical feedback on COVID related measures and also proposed a series of other important fiscal measures in this context.  We have effected a number of submissions in this respect and our proposals have been communicated to members of the Cabinet.  We have shared the substance of our submissions with you in our member communication initiatives. The Institute has utilised the experience and knowledge of its tax committees’ members in its recommendations to Government and relevant authorities.  

We had intensive discussions with members of the Cabinet to ensure, in a clear and unequivocal manner, that those professional accountants in practice whose livelihood has been adversely impacted can make his/her case to Malta Enterprise and apply for relief under the COVID-19 wage supplement mechanism, notwithstanding the contents of Annex A and Annex B.  With respect to the CfR’s notification in relation to COVID-19: Fiscal Assistance – Postponement of Payment of Certain Taxes, we have been assured, once again in a clear and unequivocal manner, that the postponement of taxes will be extended to those professional accountants in practice who can genuinely demonstrate that they are experiencing difficulties in effecting payments.  We have communicated this stance to you as members; we have encouraged you to apply for such measures and to keep MIA informed of developments in this respect. Please do keep us updated so that we can continue making representations on your behalf.  As you are aware, we have organised member information sharing events with the CfR and Malta Enterprise on these measures.  In our discussions with members of the Cabinet we have continued to present other proposed measures which are being considered; such proposals have been communicated to you as outlined previously.

The MIA also launched a round of talks with the Malta Bankers’ Association as well as commercial banks to address liquidity issues raised by members. With the launch of the COVID-19 guarantee scheme, the Institute also involved the Malta Development Bank, in an open information session for members regarding the details of this scheme.

The Institute actively participated in several fora with employers and associations to promote a common front to shared difficulties.  Since the pandemic has hit many professions directly, the Institute worked with the Kamra tal-Periti, the Chamber of Advocates, the Kunsill Notarili ta’ Malta and the Dental Association of Malta to safeguard the interests of more than 10,000 professionals and related employees. Through this forum, a set of effective solid recommendations, to specifically support professional sectors, were presented to Government.  We have shared a summary of these proposals through our member communications. As highlighted above, the Institute was assured that professional accountants in practice, like other professions, whose revenue had been adversely impacted, had a case to qualify for all available pandemic related assistance packages.  

As a member of prominent international professional bodies such as Accountancy Europe, the Institute is constantly monitoring developments in other countries, to better prepare members for the consequences of the current situation.

The MIA is doing its utmost to react positively to these circumstances and to influence stakeholders. Discussions held to date with stakeholders were deemed as constructive and proposals presented were positively received and considered. The Institute, on the strength of its 3,500 member base, is an important voice on matters during this challenging period. Collegiality and comradeship among accountants are more prominent than ever. Several professionals have contributed their time and provided input at different levels, to ensure that the Institute’s objectives are achieved, and the profession’s voice is heard.

Elevating quality and raising standards within our profession
The outbreak will have serious repercussions on the 2020 business financial results, impacting financial reporting and auditing, which activities characterise our profession. The MIA’s technical team, with the support of the technical committees, immediately started work on compiling detailed COVID-19 related guidance, to help members address financial reporting and audit reporting issues appropriately and consistently.

As previously indicated, we are working on the proposed amendments to the Accountancy Profession Act, to create a comprehensive and fair definition of what constitutes professional accountancy.  This will ensure that certain services, which require the skills of a professional accountant, will only be carried out by an adequately qualified and trained professional and that only professional accountants will be able to call themselves as such.  This initiative will contribute towards elevating professional standards and address the risk of non-suitably qualified persons bringing the profession into disrepute, curbing the rampant use of the term ‘accountant’.

The Institute is working to complete the sector specific implementing procedures, which need to be finalised by June in line with MONEYVAL related deadlines.  We are interacting with the Financial Intelligence Analysis Unit (FIAU) and the Accountancy Board on this project. 

Enhancing the education and qualification process
MIA CPE and Information dissemination sessions
Continuing Professional Education (CPE) for members is now being provided through a digital platform. Several free online information sessions are also being offered to members to clarify any questions and uncertainties with the relevant authorities on announced measures.  During these challenging times we will strive to enhance our information sharing sessions at no cost to our members – we have already organised sessions with important stakeholders.  Our priority is to continuously support members and ensure they are kept up to date. Frequently asked questions are being compiled and revised, in collaboration with the relevant stakeholders, for quick access by members.

CPE accreditation process
In light of the COVID-19 outbreak, the Institute proposed the revision of the existing Accreditation Rules with the aim of extending their applicability to live webinars. These rules were approved by the Accountancy Board and have come into effect to assist service providers offering CPE using online platforms, during the COVID-19 period.

MIA-ACCA Joint Scheme
The Institute also kept regular contact with ACCA and local ACCA Approved Learning Providers, to keep students updated with the most recent developments, in relation to COVID-19 related concerns, primarily related to exam postponements.

Wrapping it up, I would like to once again reiterate my ongoing message during the past days - as a profession, we are resilient, strong and proud; together, we will overcome this challenge.  Do not allow this challenge to make you feel isolated or helpless; reach out to the Institute to work as one front and one profession.  We are here to help and support on all matters.

Allow to close this address on a particular note.  Since my previous address, the Institute lost one of its members (and what a member) – Mario Mallia.  Mario was a very important member of the Institute to us; as a professional accountant he had a successful career and he was an example for our profession.  He combined integrity, technical knowledge, pragmatism, experience, a humble approach and calmness in a unique manner – a quiet gentleman but with firm views.  Above all, he was a great lunch companion and a wonderful friend.  When COVID allows this, I will go for lunch at your favourite restaurant and drink your favourite red wine in your honour.  Great man who lived a great life.  His family, friends and colleagues are extremely lucky to have had Mario in their lives.  We’ll meet again Sur!