Singapore legislation

Section 28

of Accountants Act 2004

Section 28

Professional indemnity insurance

Amended by11/2006

(1)

Every accounting corporation and every accounting LLP registered under this Act must be covered by professional indemnity insurance of at least one of the following amounts, whichever is the highest:

(a)

$1 million;

(b)

a sum equal to the total of $500,000 for every corporate practitioner in the accounting corporation or accounting LLP;

(c)

where applicable, a sum equal to two and a half times the gross income of the accounting corporation or accounting LLP in the last completed financial year of the accounting corporation or accounting LLP subject to a maximum sum of $50 million.

Amended by11/2006

(2)

The Authority may, by rules, vary the amount of coverage under a professional indemnity insurance required by subsection (1).