s.35Obligation of auditors
35
Section 35Part 6 — Miscellaneous ProvisionsAmended

Obligation of auditors

←→ Navigate  ·  Click subsection badges to collapse  ·  Press ? for help

Amended by LG41/S9
If an auditor, in the course of carrying out an audit of the accounts of a regulated mutual fund or a regulated EU Connected Fund , obtains information or suspects that the mutual fund or the EU Connected Fund is —
unable or likely to become unable to meet its obligations as they fall due;
carrying on or attempting to carry on business or winding - up its business voluntarily in a manner that is prejudicial to its investors or creditors;
carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited;
carrying on or attempting to carry on business in a fraudulent or criminal manner; or
carrying on or attempting to carry on business otherwise than in compliance with —
this Act or any regulations made hereunder;
the Monetary Authority Act (2020 Revision) ;
the Anti - Money Laundering Regulations (2025 Revision) ; or
a condition of the licence, the auditor shall immediately give the Authority written notice of that auditor ’s information or suspicion and, in the case of suspicion, that auditor ’s reason for that suspicion.
If an auditor, in the course of carrying out an audit of the accounts of a l icensed mutual fund administrator, obtains information or suspects that the mutual fund administrator is —
unable or likely to become unable to meet its obligations as they fall due;
carrying on or attempting to carry on business or winding - up its mutual fund administration business voluntarily in a manner that is prejudicial to investors in a ny mutual fund it is administer ing or to its creditors or the creditors of any such mutual fund; or
carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited;
carrying on or attempting to carry on business in a fraudulent or criminal manner; or
carrying on or attempting to carry on business otherwise than in compli ance with —
this Act or any regulations made hereunder; ( ia ) in respect of a licensed mutual funds administrator, the Beneficial Ownership Transparency Act, 2023 [Act 13 of 2023] , if the licensee is a “corporate services provider” as defined in that Act
the Monetary Authority Act (2020 Revision) ;
the Anti - Money Laundering Regulations (2025 Revision) ; or
a condition of the licence, the auditor shall immediately give the Authority written notice of that person’s information or suspicion and, in the case of suspicion, that person’s reason for that suspicion.
Without prejudice to subsection (9), if it appears to the Authority that an auditor has failed to comply with subsection (1) or (2), the Authority may disqualify that auditor from being an auditor of a regulated mutual fund or a regulated EU Connected Fund or a licensed mutual fund administrator; but the Authority may remove any disqualification imposed under this subsection if satisfied that the auditor in question will in future c omply with subsection (1) or (2), as the case may be.
A regulated mutual fund or a regulated EU Connected Fund or a licensed mutual fund administrator shall not appoint as an auditor a person disqualified under subsection (3).
Where the Authority has granted approval of an auditor under this Act , the approval may be revoked by the Authority if the Authority is of the opinion that the auditor is not sufficiently competent to carry out an audit of the accounts of a regulated mutual fund or a regulated EU Connected Fund or a licensed mutual fund administrator or that, in all the circumstances, the auditor is incapable of carrying out the audit objectively.
Repealed by section 8 of the Mutual Funds (Amendment) Act , 2020 [Law 2 of 2020] .
A referen ce in this section to an auditor carrying out an audit of the accounts of a regulated mutual fund or a regulated EU Connected Fund or a licensed mutual fund administrator includes a reference to an auditor who was engaged to carry out such an audit or who was in the course of carrying out such an audit but resigned before carrying out or completing the audit or whose contract to carry out or complete the audit was otherwise terminated.
A person who contravenes subsection (1) or (2) commits an offence an d is liable on summary conviction to a fine of twenty thousand dollars.
Nothing in subsection (1) or (2) shall impose on an auditor carrying out an audit of the accounts of a regulated mutual fund or a regulated EU Connected Fund or a licensed mutual fund administrator an obligation to do anything that that auditor would not otherwise be required to do in accordance with generally accepted auditing standards, other than the obligation to provide notice and reasons to the Authority .

Cross References