Section 8Part 2 — Regulated Mutual FundsAmendedNot Yet In Force
Annual audit of regulated mutual fund
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This section has not been brought into force.
It was enacted by Parliament but awaits a commencement order before it becomes operative law.
Amendment: LG9/S2
Pending changes
Adds new subsections (1A) and (1B) to section 8 regarding accounting standards and auditing standards.
Adds new subsection (5) to section 8 defining 'International Financial Reporting Standards' and 'non-high risk jurisdiction'.
A regulated mutual fund shall have its accounts audited annually by an aud itor approved by the Authority. (1A) The accounts of a regulated mutual fund shall be prepared in accordance with the International Financial Reporting Standards or the generally accepted accounting principles of the United States of America, Japan or Swit zerland or any non - high risk jurisdiction. (1B) The annual audit under subsection (1) shall be carried out in accordance with the International Standards on Auditing or the generally accepted auditing standards of the United States of America, Japan, Switz erland or a non - high risk jurisdiction.
A regulated mutual fund shall, in such manner as the Authority may from time to time direct, send its audited accounts in respect of a financial year of the fund to the Authority within six months of the end of that financial year or within such extension of that period as the Authority may allow.
The operator of a regulated mutual fund shall ensure that the mutual fund complies with subsections (1) and (2), and a person who contravenes this provision commits an offence and is liable on conviction to a fine of twenty thousand dollars.
The Authority may, in relation to the whole or part of any financial year of the fund, exempt a regulated mutual fund from the requirements of this section either absolutely or subject to such conditions as the Authority may think fit to impose.
In subsection (1A) — “ International Financial Reporting Standards ” means the accounting and reporting standards developed and issued by the International Accounting Standards Boar d; and “ non - high risk jurisdiction ” means any jurisdiction that is not on the list of high risk jurisdictions issued by the Financial Action Task Force.