(1) An external auditor appointed by a trustee, pension fund manager or custodian shall, in the discharge of duties report to the Board any

(a) extreme situation such as evidence of imminent financial collapse of the trustee, pension fund manager or custodian;

(b) evidence of an event or occurrence which has led or is likely to lead to material diminishing of the net assets of the trustee, pension fund manager or custodian;

(c) evidence of a significant weakness in the accounting and other records or the internal control systems of the trustee, pension fund manager or the custodian;

(d) report or statement on financial matters made by the management of the trustee, pension fund manager or custodian which is misleading;

(e) fraud or other misappropriation which the auditor believes has been committed by the directors or the management of the trustee or pension fund manager or custodian or has evidence of an attempt by the directors or senior management to commit fraud or misappropriation; or

(f) event or occurrence which affects or is likely to affect the auditor’s confidence in the competence of the directors or the senior management to conduct the business of a trustee, pension fund manager or custodian in a prudent manner.

(2) An auditor who acts in good faith in response to a request made by the Board, by giving information or opinion on a matter or situation to the Board is not liable for breach of duty.

(3) An auditor of a trustee, pension fund manager or custodian who contravenes or negligently fails to comply with the provisions of subsection (1) commits an offence and is  liable on summary conviction to a fine of two hundred and fifty penalty units or to a term of imprisonment of not more than six months or to both.

(4) A trustee, pension fund manager or custodian shall

(a) ensure that the pension fund managed is held in accordance with the provisions of this Act or regulations made under the direction of the Board;

(b) take reasonable care to ensure that the management or safe keeping of the pension fund is carried out in the best interests of the members;

(c) report to the Board, acts as regards the pension funds which are likely to adversely affect the rights of the members under the scheme; and

(d) report to the Board the failure of an employer to remit contributions due or unpaid for more than fourteen days.