New law gives reporting panel punitive powers

Previously no sanctions were in place but a new monitoring panel will oversee the standards and have punitive powers, says the report. Financial and tax advisers and merchant bankers will also need to ensure that the financial arrangements they set up for companies are accurate and not false or misleading. ‘The provisions of the Act are far-reaching for directors and financial advisers of companies,’ said Phillip Austin, audit risk leader and professional practice director at Deloitte. Companies would have to review their infrastructure and practices to minimise the risk of issuing misleading or incorrect financial information, Austin said yesterday. Under the new Act, widely-held companies must comply with international financial reporting standards. Full Business Day report