Cap. 590 Art. 50Auditor’s duty to report. 

(1) A licence holder shall appoint an auditor who shall have the duty to report immediately to the competent authority any fact or decision of which he becomes aware in his capacity as auditor of such licence holder which -

(a) is likely to lead to a serious qualification or refusal of the auditor’s report on the accounts of such licence holder; or

(b) constitutes or is likely to constitute a material breach of the legal or regulatory requirements applicable to the licence holders in or under this Act; or

(c) gravely impairs the licence holder’s ability to continue as a going concern; or

(d) relates to any other matter which may be prescribed.

(2) An auditor of a licence holder shall report to the competent authority any facts or decision as specified in sub-article

(1) of any person having close links with such licence holder within the meaning in article 17, of which he becomes aware in his capacity as auditor of the licence holder or of the person having such close links.

(3) No duty (including the duty of professional secrecy) to which an auditor of the licence holder may be subject, shall be regarded as contravened by reason of his communicating in good faith to the competent authority, whether or not in response to a request from it, any information or opinion on a matter of which the auditor has become aware in his capacity as auditor of that licence holder and which is relevant to any functions of the competent authority under the provisions of this Act or is required to be communicated by virtue of sub-article (1).

(4) The matters prescribed for the purposes of sub-article (1)(d) may include matters related to persons other than the licence holder.

(5) An auditor of a licence holder shall, in the absence of compelling reasons not to do so, simultaneously report the information specified in sub-articles (1) and (2), in accordance with the provisions of sub-articles (3) and (4), to the board of administration of the licence holder.

(6) An auditor of a licence holder shall report annually to the competent authority on the licence holder’s systems and security access protocols in the manner and format required by the competent authority.

(7) The provisions of this article shall apply to issuers mutatis mutandis.