2014 MIA Conference Defining New Frontiers – Translating Vision into Value Thursday 6 and Friday 7 November – Portomaso Suite, Hilton, St Julians Entitled Defining new frontiers - Translating vision into value, this year’s MIA Conference assumes a particular importance in view of the recent accounting and auditing reforms that have been approved by the EU, which reforms will affect the Maltese business sector profoundly. Incidentally this year Malta celebrates its 10th anniversary of EU membership and it was considered fitting for the event’s theme to be related to Malta’s fabric now, 10 years after having joined the EU and considering those legislative initiatives that are increasingly shaping Malta’s legislative framework. The new developments in audit and accounting are not the only ones, and other changes in tax, prevention of money laundering and public sector accounting are also expected to effect the local accountancy profession. Matters have come to a point where we as a profession should have the courage to question ourselves, especially at times such as this. The Accountancy profession has been one of the professions that have been mostly affected by EU legislative initiatives, albeit these changes also affecting local enterprises. For us Accountants, the EU poses a twofold challenge: firstly, we need to understand how the key forces emanating from the EU will shape the future around us. Secondly, we need to assess how these changes and developments will impact our profession. Thursday 6 November 2014 08.15 – 09.00 Registration and Welcome Coffee 09.00 – 09.10 Welcome speech by the President of the Malta Institute of Accountants Maria Micallef 09.10 – 10.00 Session 1A: Setting the scene – EU legislative initiatives The first part of the introductory session will introduce delegates to the Conference’s theme and those legislative initiatives that are increasingly shaping Malta’s legislative framework by including subject matter experts who will present these EU legislative initiatives that will most affect the profession in the years ahead. 10.00 – 11.00 Session 1B: (EU legislative initiatives) The Effect on Malta Offering In this second part of the Conference’s introductory session, a panel will be debating the effect that the EU legislative initiatives will have on the Maltese accountancy profession and consequently on the robustness of the Malta offering and on the profession’s ability to offer their services to international clients. Panel members will do so by debating the negative points that may affect the ability of professionals to sell Malta. Having established any pros and cons on Malta’s standing as a reputable jurisdiction for attracting foreign direct investment, the panellists will conclude by considering the particular effects on accountants. Bernard Scicluna ............................ Michel Cordina ............................... Dr Louis Degabriele ........................ Bruno L'Ecuyer ............................... Kevin Valenzia ................................. Risk & Reputation Leader, Deloitte Malta (Moderator) Head of Commercial Banking, HSBC Partner, Camilleri Preziosi Advocates Head of Business Development, FinanceMalta Territory Senior Partner, PwC 1 11.00 – 11.30 Coffee Break 11.30 – 13.00 Concurrent Workshops Workshop 2.1: Audit policy reforms The European Union (EU) audit market reform began in 2010 with a European Commission (EC) consultation Green Paper entitled “Audit Policy: Lessons from the Crisis”. After three years of negotiations, the new European audit legislation was final in the spring of 2014. The legal texts, which entered into force in June 2014, bring many challenges for the audit profession and the European business environment at large. The Directive 2014/56/EU on statutory audits of annual accounts and consolidated accounts, amending the Directive 2006/43/EC on statutory audits and containing a series of amended and new requirements governing every statutory audit in the European Union (hereafter referred to as “the Directive”). The Regulation (EU) No 537/2014 on statutory audit of public-interest entities containing additional requirements that relate specifically to statutory audits of Public Interest Entities (PIEs) in addition to the ones stated in the Directive (hereafter referred to as “the Regulation”). The legislation will be applicable in all EU Member States and in the countries of the European Economic Area (EEA), being Iceland, Liechtenstein and Norway. Member states will have two years to transpose (adopt and publish) the provisions to comply with the amended Directive after its entry into force, namely on 16 June 2016. Although the Regulation will technically come into effect on 16 June 2014, there is a two-year delay in the application of most provisions included in the Regulation from the date it enters into force. This workshop will discuss the affect that the audit reform would have in Malta. Keynote speaker Miles Thompson ............................ FEE Audit and Assurance Policy Group Chairman Panel discussion Mark Abela ..................................... Mark Bugeja .................................... Glenn Collins ................................... Anthony Doublet ............................ Simon Flynn .................................... Miles Thompson ............................. Technical Director, MIA (Moderator) Managing Partner, Grant Thornton Head of Technical Advisory, ACCA MIA Council Member and Assurance Leader, EY MIA Council Member and Head of Assurance, PwC Federation of European Accountant (FEE) Audit and Assurance Policy Group Chairman Workshop 2.2: Alternative sources of finance Access to finance will continue to be a critical issue for policy makers and business leaders in the coming months. This workshop will be exploring other sources of funding that are available to Maltese SMEs besides the tradition bank loans. In the introductory part, a keynote speaker from the Malta Chamber of Commerce, Enterprise and Industry (MCCEI) will present the research that the MCCEI carried out among its members on the types of funding that are used by local entities. Keynote speakers from HSBC and the Malta Enterprise will present the funding support measures that are offered by their respective organisation. After this introduction, representatives of the Government, banking, advisory, industry and professional sectors will discuss a variety of alternative funding sources for SMEs that have become or could become available and establish whether there are areas in which Malta is lagging behind other competing jurisdictions. The evolution of traditional bank financing will be considered particularly in relation to its prevalence in financing Maltese investment ventures. Panel members will discuss ways in which new products could be introduced or existing products refined in a bid to develop alternative investment platforms to invest in local entrepreneurs and help them launch their businesses locally and also quite possibly overseas. In conclusion the profession’s supporting role will be considered. 2|P a g e Keynote speakers Anton Borg ..................................... Deputy President, Malta Chamber of Commerce, Enterprise and Industry James Woodeson ............................ Head of Global Banking and Markets, HSBC Dr Mario Vella ................................. Chairman, Malta Enterprise Panel discussion Marcel Cassar ................................. Raphael Aloisio ............................... Anton Borg ..................................... Dr Mario Vella ................................. James Woodeson ............................ First Executive Vice President and CFO, FIMBank plc (Moderator) Leader Financial Advisory, Deloitte Deputy President, Malta Chamber of Commerce, Enterprise and Industry Chairman, Malta Enterprise Head of Global Banking and Markets, HSBC Workshop 2.3: Future of Tax: EU tax policy and International tax reforms The European Commission's tax policy strategy was explained in a Communication of 23 May 2001 on "Tax policy in the European Union - Priorities for the years ahead". The EC reiterated its belief that there is no need for a harmonisation of Member States' tax systems and Member States are free to choose the tax systems they consider most appropriate. Within this framework, this Communication established as a main priority for tax policy that of eliminating tax obstacles to all forms of cross-border economic activity, in addition to continuing the fight against harmful tax competition and promoting greater cooperation between tax administrations in assuring control and combating fraud. Delegates will be given a detailed overview of the European tax (indirect and direct tax) developments including: the EC 2012 Action Plan against tax evasion, EU tax policy and the initiatives of the EU Commission on combating tax fraud and tax evasion, Financial Transaction Tax and Common Consolidated Corporate Tax Base harmful tax practices and the OECD’s work on Base Erosion and Profit Shifting (BEPS) and the 2015 changes in VAT Rules. Panel members will consider whether tax law is effectively becoming a patchwork of regional, national and EU rules and why there is a lack of a harmonised tax framework. The pressure on tax professionals is increasing because they must give their own interpretation of the "spirit" of the tax laws even though there are no concrete measures as yet. The role of the profession as well as that of the legislator and the tax authorities will also be discussed in view of the societal expectations that they should not be party to any tax behavior which can be deemed to be anti-social or ethically dubious. Keynote speaker Conrad Cassar Torregiani ............... Leader International Tax, Deloitte Panel discussion Karen Spiteri Bailey ......................... Conrad Cassar Torregiani ................ George Gregory .............................. TBD ................................................. Petra Weymuller ............................. Partner, Spiteri Bailey and Co (Moderator) Leader International Tax, Deloitte Partner Tax and Corporate Services, RSM Malta Commissioner for Revenue Senior Manager, Federation of European Accountant (FEE) 13.00 – 14.15 Lunch and keynote speech Speaker: Hon. Prof. Edward Scicluna, Minister for Finance 14.15 – 14.45 Session 3A: Roundup of technical workshops Three rapporteurs will each give a 10 minute presentation of the discussions that ensued in each of the three technical workshops. 14.45 – 15.15 Session 3B: Change your rhythm A local entertainment company will take centre stage together with professional percussionists who will teach the audience a number of different rhythm cycles. The audience will eventually create a piece of music alongside the main percussive team on stage generating an incredible percussive crescendo! Everyone’s contribution is imperative to work together and create one loud song! 3|P a g e 15.15 – 15.45 Coffee Break 15.45 – 17.15 Session 4: Family business and succession planning The family business is a vital force in today’s local economy. It ranges in size from the traditional, small, corner business to dynamic organisations employing a large number of people. Family businesses are a mainstay in the Maltese economy. To this end, the issue of family businesses is a popular topic in public and policy discussions. However, there is no specific legislation that differentiates between family businesses and non-family businesses. In 2013 the Government engaged in consultation with stakeholders with a view to enact a law with the aim of facilitating business transfers between family members and from one generation to another without compromising business continuity. The proposed law should encourage financial responsibility on the side of business as well as reduce administrative bureaucracy on the side of Government. A specific committee, the Family Business Act (FBA) Committee, was set up under the auspices of the Ministry for the Economy, Investment and Small Business to drive this legislative initiative. In this session, the FBA Committee Chairperson will talk about the state of family business regulation in Malta and about the progress achieved by the FBA Committee. The panel discussion will discuss various important themes in this context such as the challenges faced by family businesses especially in respect of succession planning such as the main difficulties faced during succession planning and the main reasons why such businesses fail. Fundamental questions in relation to the proposed FBA Act will be tackled such as why are family businesses different from other businesses, how will Government ensure that there is no discrimination between family businesses and other businesses, what will be the benefits offered by registration, and others. Keynote speaker Dr Nadine Sant ............................... Family Business Act Chairperson, Ministry for the Economy, Investment and Small Business Panel discussion Franco Azzopardi ............................ Honorary Secretary, MIA and Professional Director in various listed, ........................................................ financial and family businesses (Moderator) Etienne Borg Cardona .................... MIA Council Member and CEO, Forestals Dr Louis Cassar Pullicino ................. Partner, Ganado Advocates Martin Galea .................................. CEO, Joinwell Dr Nadine Sant ............................... Family Business Act Chairperson, Ministry for the Economy, Investment and Small Business 4|P a g e Friday 7 November 2014 08.15 – 09.00 Registration and Welcome Coffee 09.00 – 10.30 Session 5: The Accountant: A trusted advisor How is the role of the Accountant changing? What will be the Accountant’s role in the future? How will accountants remain relevant? This forward looking session explore potential areas, along with regulatory and technical developments, that could increase the opportunities for practitioners from large and smaller firms to provide new services. We will envisage what accountants will be like in the future, what will they be doing and what skills and competencies they will need most to remain relevant and to be successful. Is there a need to look beyond the traditional accounting and core assurance services? The panel will consider how the accountant’s relationship with the client could evolve from that of a trusted attester to one of a trusted advisor. Above all, panel members will try to answer the most fundamental of questions, how can accountants continue to evolve as strategic partners of clients, business and employers. Keynote speaker Mario Abela ................................... Leader – Research and Development, International Federation of Accountants Panel discussion Maria Micallef ................................ President, MIA and Partner, RSM Malta (Moderator) Mario Abela ................................... Leader – Research and Development, International Federation of Accountants Peter J. Baldacchino ........................ Head of Accounting Department, FEMA, University of Malta Prof. Robin Jarvis ............................ Special Advisor, ACCA Tonio Zarb ...................................... Council Member, MIA and Senior Partner, KPMG Winston J. Zahra ............................. CEO, Island Hotels Group 10.30 – 11.00 Coffee Break 11.00 – 12.00 Session 6: Accounting Directive update In this session delegates will be given an update on the progress that has been achieved by the transposition working group, which is currently considering a number of technical Member State options as part of the Accounting Directive (Directive 2013/34/EU) transposition exercise. Considering that several of the requirements for Small Entities are mandatory, with express provisions that no further requirements may be added by Member States and that 99% of Maltese businesses would fall within the ‘Small’ category, esteemed experts will discuss the impact that the changes brought about by the Accounting Directive will have on the financial statements of SMEs. The session will also consider the effect that the Directive will have on Maltese GAAP in particular on the use of IFRS and on the changes that would be necessary to adapt GAPSE to the new requirements set out in the directive. The panel will consider those changes that will affect the information that is required for tax purposes as well as whether the resulting financial statements will provide information that is relevant to users especially banks. Keynote speaker Fabio Axisa ..................................... Treasurer, MIA and Partner, PwC 5|P a g e Panel discussion William Spiteri Bailey ...................... Secretary, MIA and Partner, Spiteri Bailey and Co Fabio Axisa ...................................... Treasurer, MIA and Partner, PwC Robert Ancilleri ............................... Executive Committee Member, Malta Bankers Association and Head of ........................................................ Finance at Banif Bank (Malta) plc Marvin Gaerty ................................ Commissioner for Revenue Charles Rapa ................................... Chairman, Accountancy Board 12.00 – 12.45 Session 7: Work-life balance New technological equipment keeps being created to assist in decreasing our workload and to ‘simplify’ our lives, both at work and at home. Notwithstanding this, we seem to have managed to create an extremely hectic and complicated lifestyle for ourselves. Creating a healthy work/life balance is not simply walking out of the office on time and leaving your work behind you. Panel members will discuss ways in which individuals can reconcile their work commitments to their private lives by using stress management techniques. Panel discussion Franco Azzopardi ............................ Honorary Secretary, MIA and Professional Director in various listed, ........................................................ financial and family businesses (Moderator) Dr Anthony Dimech ....................... Consultant Psychiatrist MD Prof. Dr Albert Fenech .................... MP, Interventional Cardiologist Andrew Farrugia ............................ Financial Controller, Grand Harbour Marina p.l.c 12.45 – 13.00 Concluding remarks by the President of the Malta Institute of Accountants Maria Micallef 13.00 – 14.00 Lunch Enquiries: The Malta Institute of Accountants Suite 4, Level 1, Tower Business Centre, Tower Street, Swatar, BKR 4013 Malta T: +356 2258 1900 F: +356 2132 3906 E: [email protected] W: www.miamalta.org Main Sponsor: 6|P a g e