(1) A company or partnership holding a licence as an insurance broker or an insurance loss adjuster shall appoint an auditor for the purposes of auditing the accounts referred to in paragraph (a) to (c) of section 139 (1), and the accounts and statements referred to in section 139 (1) (d) that the Regulations specify shall be audited.

(2) An auditor shall not be appointed under subsection (1) unless

(a) the auditor is qualified under the Regulations to act as the auditor of an insurance broker or an insurance loss adjuster, and

(b) the Commission has given its approval in writing to the appointment.

(3) The Commission shall not approve the appointment of an auditor unless it is satisfied that the auditor has sufficient experience and is competent to audit the accounts of the insurance broker or insurance loss adjuster concerned.

(4) A company or partnership which holds a licence as an insurance broker or an insurance loss adjuster shall make such arrangements as are necessary to enable its auditor to audit its accounts and financial statements in accordance with this Act.

(5) Despite subsection (2), the approval of the Commission is not required where the auditor appointed in respect of a financial year acted as the auditor of the company or partnership in the previous financial year.

(6) A company or partnership which holds a licence as an insurance broker or an insurance loss adjuster shall, within fourteen days of the appointment of its auditor, submit a notice of the appointment in the prescribed form to the Commission.

(7) A company or partnership holding a licence as an insurance broker or an insurance loss adjuster that contravenes subsection (1) or subsection (6) is liable to pay to the Commission the pecuniary penalty stated in the First Schedule.