MINISTRY OF FINANCE
PATI Information Statement
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Name of Public Authority: Bermuda Public Accountability Board |
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Introduction:
Purpose of the Public Access to Information Act 2010: Under section 2 of the Public Access to Information Act 2012, the purpose of the Act is to- (a) give the public the right to obtain access to information held by public authorities to the greatest extent possible, subject to exceptions that are in the public interest or for the protection of the rights of others; (b) increase transparency, and eliminate unnecessary secrecy, with regard to information held by public authorities; (c) increase the accountability of public authorities; (d) inform the public about the activities of public authorities, including the manner in which they make decisions; and (e) have more information placed in the public domain as a matter of routine.
Reason that the public authority has an information statement: Under Section 5 of the Public Access to Information Act 2010, every public authority in Bermuda must produce an information statement.
The purposes and aims of the information scheme, and what the public authority hopes to achieve through the information statement: This statement aims to make it easy to access key information about the Bermuda Public Accountability Board’s activities.
Summary of what is in the information statement: Categories of information contained in the information statement, including information provided are as follows:
Overview of the Public Access to Information: and what information can be accessed and what cannot be accessed.
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Section A: Structure, Organization and Legislation [s5(1)a]
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The Bermuda Public Accountability Board (BPAB) was established upon enactment of The Bermuda Public Accountability Act of 2011 (the Act) to provide oversight of Bermuda accounting firms that audit Public Interest Entities (PIEs), as defined by the Act and subsequent amendments thereto. The Act provides for a comprehensive, independent and transparent system of oversight by establishing BPAB and granting it powers to carry out the independent supervision of PIE public accountants. The oversight of PIE public accountants provided under The Act is also in accordance with Articles 29, 30, and 32 of the Directive 2006/43/EC of the European Parliament and Council as amended from time to time. BPAB has engaged an Executive Director to manage the operational, strategic and financial day-to-day operations of BPAB, including the administration, programs, and strategic planning of BPAB. The Executive Director role reports to the Board of Directors. All key decisions of BPAB require approval of the majority of the Board of Directors. Board of Directors The Directors of BPAB are responsible for oversight of BPAB’s activities and affairs. The Board has a Chairman and four other non-executive members. Three of the members are professional accountants to ensure that the Board maintains accounting expertise. The two remaining members are seasoned financial and investment professionals that help deliver prudent independence and oversight. The Act specifies that a Board member is initially appointed for a three-year term, with extended terms as permitted by the Act. The Directors of BPAB are as follows: Peter F. Watson, Chairman Peter F. Watson, FCPA, FCA, currently serves on the Boards of several private companies, affiliates of public companies, as well as not-for-profit entities. He was most recently a consultant to Attorney’s Liability Assurance Society (Bermuda) Ltd., (ALAS) a mutual insurance company formed in Bermuda to provide professional liability insurance for large US law firms. Mr. Watson served as President and Chief Executive Officer of ALAS from 2002 to December 31, 2007. Prior to joining ALAS in 1998, Mr. Watson’s career was with Price Waterhouse, initially in London and Montreal and, since 1975, in Bermuda, where he also served as senior partner of the firm. In his later years with Price Waterhouse, Mr. Watson was responsible for managing the worldwide professional indemnity program for the World firm. Mr. Watson is a past president and a Fellow of the Chartered Professional Accountants of Bermuda and a member of the Chartered Professional Accountants of Ontario and the Quebec CPA Order. Nathan Kowalski, Treasurer Nathan Kowalski, CPA, CA, is the Chief Financial Officer and Senior Portfolio Manager at Anchor Investment Management Ltd. He sits on the firm’s investment committee and finance committee and has been with the company since 2003. He began his career with KPMG where he provided assurance, tax, and financial advisory services for some of the largest corporations in Canada. He then worked for Deloitte and Touche Corporate Finance Inc. where he provided expert advice in mergers and acquisitions and valuations for corporate clients, private equity/venture capital firms, entrepreneurs, and governments. Nathan is a Fellow of the Canadian Securities Institute (FCSI), and also holds the Chartered Financial Analyst (CFA) and Chartered Investment Manager (CIM) designations. He is the former President of the Chartered Financial Analyst Society of Bermuda board. He currently sits as a board member for the Bermuda Chamber of Commerce and the Bermuda Deposit Insurance Corporation. He is also the author of “Financial Ramblings from the Rock”, a weekly column featured in Bermuda’s Royal Gazette. Robert D. Steinhoff Robert D. Steinhoff, FCPA, FCA, JP, currently serves on the board of several private companies and community charitable organizations. Prior to retiring as Senior partner of KPMG he was an audit partner specializing in Insurance and banking clients and served nineteen years as the firm’s Managing partner. He has been involved with the development of Bermuda’s insurance industry since 1971, including assisting with the drafting of The Bermuda Insurance Act in 1978 and amendments in 1995 and served on the Insurance Advisory Committee for twenty years, including 5 years as its Chairman. He is former Deputy Chairman and Director of the Bermuda Monetary Authority (Bermuda’s regulator of financial institutions and its central bank). He also served on a number of working committees of The Institute of Chartered Professional Accountants of Bermuda and completed a two-year term as President in 1984. He served two years on the Board of Governors of the Canadian Institute of Chartered Accountants (subsequently merged into Chartered Professional Accountants of Canada). Andrew M. Marsh Andrew M. Marsh is managing partner of an independent investment consulting and advisory firm in Bermuda. He also serves as an independent director for private investment companies. Andrew brings over 25 years of in-depth capital markets and asset management experience working for top global investment firms including Goldman Sachs (J. Aron & Company), Dai-Ichi Kango, and Alfred Berg in London, Stockholm, and Hong Kong. Since Andrew’s move back to Bermuda in 2001, he spent time working in senior positions for hedge funds and asset management companies as chief economist, proprietary trader and equity analyst. Scott Hunter Scott Hunter, FCPA, FCA, JP, has served as an independent director since 2002. From 1981 until 2002, Mr. Hunter was Managing Partner of a public accounting practice in Bermuda whose clients included numerous insurance / reinsurance and asset management companies. His practice represented Arthur Andersen from 1986 to 2002 and KMG from 1982 to 1986. During Mr. Hunter’s public practice career he served as lead client partner on all of his firm’s significant clients. Mr. Hunter has also been active in many business, professional and charitable activities. Mr. Hunter is a graduate of Brown University.
Executive Director Wanda Mwaura, CPA, CA, serves as the Executive Director of BPAB since January 2020 in addition to serving as non-executive director on various boards. Wanda was the Chief Accounting Officer at PartnerRe to July 2019 and previously Partner of Ernst & Young Ltd. to September 2013. Over the years, Wanda served on various boards including the Institute of Chartered Accountants of Bermuda (now known as CPA Bermuda), the Bermuda Insurance Institute, and the previous Atlantic School of Chartered Accountants.
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Legislation BPAB is constituted by the Bermuda Public Accountability Act 2011 (the “Act”). The Act was amended in 2015 and 2017 to make certain conforming changes to clarify BPAB’s ability to impose civil penalties and to revise the definition of a Public Interest Entity (PIE). The procedures of BPAB are further set out in subordinate legislation made pursuant to the Act. See links on the Legislation page of our website at www.bpab.bm for the legislation contained in the Act, Amendments thereto, Rules and Regulations as follows:
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Section B: 1) Functions, powers, duties of the Authority [s5(1)b]
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BPAB is responsible for the oversight and registration of public accountants in Bermuda that conduct audits of Public Interest Entities (“PIEs”).
Registration
Every audit firm in Bermuda that audits a PIE must be registered with BPAB. Registration is for a one-year period and must be renewed annually. At present, BPAB oversees four audit firms in Bermuda (the Big 4) that are registered as “PIE public accountants” as follows:
Inspection and Investigation Activities BPAB is constituted by the Bermuda Public Accountability Act 2011 (the “Act”), including subsequent amendments thereto in 2015 and 2017. The procedures of BPAB are further set out in subordinate legislation made pursuant to the Act containing Rules and Regulations. Section 32 of the Act and Rule 13 in Part 4 of the Bermuda Public Accountability (General) Rules 2015 (the “Rules”) specifically covers “Inspections and Investigations” providing for the inspections at least once in every three year period for each of the registered PIE public accountants. Under the Act and Rules, BPAB may at any time determine that a special inspection is required, or where applicable, an investigation. Inspection Activity Inspections are assessments of the compliance of each PIE public accountant with the provisions of the Act and Regulations, the professional standards and rules, and the quality control policies of the PIE public accountant, in connection with the issuance of audit reports on the financial statement of PIEs. Under the Rules, either the Compliance Committee, or any person or entity authorized by BPAB to participate in the inspection, may take such steps and perform such procedures as BPAB determines to be necessary or appropriate. These include document requests and oral interviews. Rule 12 of the Rules provides that each member firm (and its professionals, partners and employees) are obliged to cooperate with inspections and comply with all BPAB demands and requests. Inspection Reporting Inspections result in the production of inspection reports as per Section 14 of the Rules which is to set out any weaknesses in the PIE public accountant’s system of quality controls, any significant deficiencies in any audit engagement reviewed, and recommendations for improvement with regard to the PIE public accountant’s system of quality controls. Following an inspection under Rule 13, the Compliance Committee will first produce a draft inspection report containing the findings of the inspection. Within 30 days of receiving the Compliance Committee’s draft report, the member firm shall respond to the recommendations contained in the draft report. Upon considering the member firm’s responses, the Compliance Committee may make such amendments as it thinks fit and/or finalize the draft report. Remedial Action Upon finalization of an inspection report, Rule 15 provides that the Compliance Committee shall commence remedial action in respect of any weaknesses, deficiencies and recommendations. Upon commencing remedial action, the member firm is required to submit evidence or otherwise demonstrate that it has remedied matters identified in the report, no later than 12 months after the date of the final report. Where the member firm fails to adequately address all or any of the weaknesses, deficiencies or recommendations to the satisfaction of the Compliance Committee, the Compliance Committee shall publish its findings. Investigation Activity Where the Compliance Committee considers that a violation event has occurred, it may i) issue an order for an investigation under Rule 16 of the Rules; ii) may commence review proceedings; or iii) invoke its powers under Rule 24 where the Committee may give a violation event notice setting out the requirements, restrictions or penalties the Committee proposes to impose on such PIE public accountant. Review Proceedings Review proceedings are a quasi-judicial process that entails empaneling four members of any professional agency or entity of good repute situated locally or international and selected by BPAB. These four independent adjudicators are entitled to determine a firm’s liability for non-compliance.
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Section B: 2) Obligations under PATI Act [s5(1)b]
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BPAB has the following obligations under PATI Act[s5(1)b]:
To provide an information statement for the public and promulgate it [s5],
Audited financial statements and other financial information may be available upon request if you are Bermudian or a resident of Bermuda, by making a request for information under Public Access to Information (PATI) https://www.gov.bm/public-access-information-pati.
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Section C: Services and Programmes [s5(1)c]
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Services and Programmes: See Section B above.
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Section D: Records and documents held [s5(1)d]
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The Bermuda Public Accountability Board prepares and retains financial records at least quarterly as well audited financial statements, budget, and an annual report annually.
See also Sections A, B and C above.
See also information available on our website at www.bpab.bm or www.bermudapab.com
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Section E: Administration (all public access) manuals [s5(1)e]
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On November 23, 2020, the Directors of the Bermuda Public Accountability Board adopted its Code of Ethics and updated Conflict of Interest Policy, which is available upon request.
See also Sections A, B and C above.
See also information available on our website at www.bpab.bm or www.bermudapab.com
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Section F: Decision-making documents [s5(1)f]
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See response to Section E above. |
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Section G: The Information officer [s5(1)g] |
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Name and contact information:
Peter F. Watson, Chair of Bermuda Public Accountability Board Email: Peter@bermudapab.com Phone: (441) 261-8481
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Section H: Any Other Information [s5(1)h] |
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See Sections A through G above. See also information available on our website at www.bpab.bm
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Section I: Any Other Information To be Provided? [s5(1)i] |
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None.
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Section J: Information Statement: Copies and Updates [s5(2,3,4,5)] |
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Every public authority shall update its information statement at least once a year, and make it available for inspection by the public at reasonable times by [s5(1-5), PATI Act]: |
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Date Information Statement was updated: December 31, 2020
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Locations of Information Statement: Confirm copies of Information Statement are available at the following sites: |
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Sign: ____________________________________________________ Peter F. Watson, Chair of Bermuda Public Accountability Board
Date: December 31, 2020
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