The Non-Compliance with Laws and Regulations (NOCLAR) Requirement

The Non-Compliance with Laws and Regulations (NOCLAR) Requirement

Published Jul 04, 2018

Forsyths has a responsibility to abide by the Code of Ethics for Professional Accountants. The Accounting Professional & Ethical Standards Board (APESB) oversee this Code. The APESB recently amended the Code to include the “Responding to Non-Compliance with Laws and Regulations” framework. This framework, also known as “NOCLAR”, applies to our accounting and audit teams.  

The framework outlines the requirements our staff must abide by when we become aware of a client’s non-compliance or potential non-compliance with laws and regulations. If we identify or suspect that non-compliance with laws or regulations has occurred, or is likely to occur, and would result in serious harm, we must alert the relevant authorities.   

NOCLAR that would result in serious harm includes NOCLAR that would directly affect our client’s financial statements, or their business, in a significant way.

We are able to firstly work with the client to identify and help remedy the NOCLAR or potential NOCLAR. Therefore, we will firstly aim to enable the client to resolve the non-compliance or deter potential non-compliance before reporting.

Further action may include us having to disclose the matter to an appropriate authority, or no longer acting for the client.  

If possible we will inform our client of our intention to disclose the matter to an appropriate authority before this disclosure occurs. However, if we have reason to believe that the actual or intended conduct would be an imminent breach of a law or regulation, we may be required to immediately disclose the matter to the appropriate authority.

For more information on the NOCLAR framework, please visit the APESB website

Any advice contained in this material is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Any representations, opinions or statements are based on our understanding of the relevant legislation as at the date of issue. Although every effort has been made to verify the accuracy of the information contained in this material, Forsyths Business Services, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this material or any loss or damage suffered by any person directly or indirectly through relying on this information. Accounting & Business Services are provided by Forsyths Business Services Pty Ltd ABN 66 182 781 401, liability is limited under a scheme approved under Professional Standards Legislation.