Investment Services Act (Cap. 370), article 18

18. (1) An auditor of the holder of a licence shall have the duty to report immediately to the competent authority any fact or decision concerning that licence holder of which he becomes awa re in his capacity as auditor of s uch licence holder which – INVESTMENT SERVICES [CAP. 370. 63 (a) is likely to lead to a seriou s qualification or refusal of the auditor’s report on the accounts of such licence holder; (b) constitutes or is likely to constitute a material breach of this Act or any regulations or Rules issued thereunder, including the legal or regulatory requirements applicable to the licence holders in or under this Act; (c) may affect the continuous functioning of the licence holder; (d) may lead to the refusal to certify the licence holder’s accounts or to the expression of reservations; or (e) relates to any other matte r which may be prescribed. (2) An auditor of the licence holder shall report to the competent authority any facts or decision as specified in sub-a rticle (1) of any person having close links with such licence holder w ithin the meaning in article 6, of whi ch he becomes aware in his capa city as auditor of the licence holder or of the person having such c lose links. (3) No duty (including the duty of professional secrecy) to which an auditor of the holder of a licence may be subject, sha ll 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 whic h the auditor has become aware in his capacity as auditor of that lic ence 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 hol der shall, in the absence of compelling reasons not to do so, simultaneously report the information specified in sub-ar ticles (1) and (2), in accordanc e with the provisions of sub-articles (3 ) and (4), to the management b ody of the licence holder. (6) The competent authority may require the replacement of a person referred to in sub-article (1) if that person acts in br each of his obligations under paragraphs ( a) to (d) of sub-article (1). APPEALS, REMEDIES, SANCTIONS AND CONFIDENTIALITY Appeals. Amended by: XVII. 2002.151; XII. 2006.63; XX. 2007.73; XVII. 2009.9; X. 2011.33; XX. 2013.51; LXXII.2021.25. Cap. 330.