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(1) The auditor of a registered scheme who

(a) becomes aware of any matter that would cause the auditor to qualify the auditor's report on financial statements made in respect of the scheme; 

(b) becomes aware that the approved trustee of the scheme is not complying with regulation 57 or 58;

(c) identifies any transaction that, is or has resulted in a misappropriation of the funds of the scheme or the scheme assets; 

(d) identifies any payment from the funds of the scheme that is materially prejudicial to the interests of scheme members or is in contravention of section 96 of the Act or of these Regulations;

(e) becomes aware that the scheme assets are or have been mixed with the funds of the trustee  or the assets of any other person; 

(f) identifies any matter that causes the auditor to belief that the requirements specified in the Guidelines with respect to prohibited investment practices and the requirements of regulation 35 and Guidelines on investment of pension funds have not been complied with;  or

(g) becomes aware that the trustee has not complied with regulation 103, except as in the course of performing the auditor’s duties shall report the matter immediately to the Authority by written notice.

(2) The auditor shall in complying with sub regulation (1) (d) state whether or not  the trustee has paid moneys taken out of the funds of the scheme within thirty days after  bringing the matter to the attention of the trustee.

(3) A scheme asset is considered to be mixed with the funds of the trustee  where a custodian of the scheme assets

(a) is also the holder of assets of one or more other registered schemes or other financial schemes or undertakings;

(b) mixes scheme assets with those other assets; and

(c) Keeps a separate account of the scheme assets and other assets of the scheme for separate identification.

(4) The auditor may, by written notice to the trustee

(a) bring the matter to the trustee's attention; and

(b) request the trustee to provide the auditor with an explanation of the  matter and the related circumstances; 

(5) The auditor shall not give notice to the trustee

(a) where the matter  relates to a transaction that has resulted in a material misappropriation of the funds of the scheme or the scheme assets; or

(b) Where the matter is of a nature that will detrimentally affect the interests of scheme members.