Section 29Part 6 — Miscellaneous Provisions
Obligation of auditor
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I f an auditor, in the course of carrying out an audit of the accounts of a private fund pursuant to sec tion 13(1), obtains information or suspects that the private fund is —
u nable or likely to become unable to meet its obligations as they fall due;
c arrying on or attempting to carry on business or winding up its business voluntarily in a manner that is prejudicial to its investors or creditors;
c arrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited;
c arrying on or attempting to carry on business in a fraudulent or criminal manner; or
c arrying on or attempting to carry on business otherwise than in compliance with —
this Act or any regulations made under this Act ;
t he Monetary Authority Act (2020 Revision);
t he Anti - Money Laundering Regulations (2025 Revision) ; or
a condition of its registration imposed under this Act , the auditor shall immediately give the Authority written notice of the in formation or suspicion and, in the case of suspicion, the reason for that suspicion.
Without prejudice to subsection ( 6 ), if it appears to the Authority that an auditor has failed to comply with subsection (1), the Authority may instruct the private fu nd to remove and replace its auditor .
A private fund shall not appoint as an auditor a person removed under subsection ( 2 ) unless the Authority is satisfied that the person will in future comply with subsection (1) .
A reference in this section to an auditor carrying out an audit of the accounts of a private fund 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) commits an offence and is liable on summary conviction to a fine of twenty thousand dollars.
Nothing in subsection (1) shall imp ose on an auditor carrying out an audit of the accounts of a private fund an obligation to do anything that the auditor would not otherwise be required to do in accordance with generally accepted auditing standards, other than the obligation to provide not ice and reasons to the Authority.