Part 15: Part 15: Appointment of Auditors and Actuaries
Article 88 - Appointment of Auditors and Actuaries(1) The
Regulatory Authoritymay make Ruleswhich require an Authorised Firmor an Authorised Firmfalling within a particular class, to appoint an Auditoror an Actuary, if it is not already subject to a separate requirement to do so.(2) The Regulatory Authoritymay make such Rulesregarding:(A) the appointment, term of office, registration or removal of Auditorsor Actuaries;(B) the qualification or approval of Auditorsor Actuaries;(C) the duties, functions and powers of Auditorsor Actuaries;(D) the scope, content and timing of any reports, reviews or audits to be undertaken by Auditorsor Actuaries;(E) the approval by the Regulatory Authorityof Auditorsor Actuaries;(F) the remuneration of Auditorsor Actuaries;(G) the notification or reporting obligations of Auditorsor Actuaries(whether to the relevant Authorised Firm, the Regulatory Authorityor otherwise); and(H) such other related or ancillary matters the Regulatory Authoritythinks fit.(3) An Auditoror Actuaryto whom any such Rulesmade by the Regulatory Authorityapply shall comply with and have such rights and powers as are prescribed by such Rules.(4) Any decision taken by the Regulatory Authoritypermitting the Regulatory Authorityto remove, disqualify or refuse to approve an Auditoror Actuarymay be referred to the Appeals Bodyby the Auditoror Actuaryaffected.
Article 89 - Disclosure of Information(1) An
Auditoror Actuarywhich is, or has been, appointed by an Authorised Firmunder Article 88(1) (or any other Law or Regulation) or has knowledge of an Authorised Firmby virtue of its appointment as an Auditoror Actuaryto any Personwith whom an Authorised Firmhas Close Linksand any director, officer, employee, agent or contractor of an Auditoror Accountant so appointed:(A) must disclose to the Regulatory Authorityanything that suggests that the Authorised Firmhas or may have contravened, or may be about to contravene, any Law, Regulationsor Rules; or(B) may inform the Regulatory Authority(whether or not in response to a request from the Regulatory Authority) of any matter concerning the Authorised Firmand give his opinion in respect of any such matter (provided that he is acting in good faith and he reasonably believes that the information is relevant to any functions of the Regulatory Authorityand the proper functioning of the Authorised Firm);and will not contravene any duty to which he is subject merely by giving the Regulatory Authoritysuch information.(2) Article 89(1) shall not apply to the extent that making such a disclosure or providing such information or opinion would result in disclosure of a Protected Item.(3) No Personshall be subject to detriment, loss or damage purely by reason of his acting in such a way that causes or assists an Auditoror Actuary:(A) to comply with its obligation to make a disclosure to the Regulatory Authorityunder Article 89(1)(A); or(B) to exercise its rights to inform the Regulatory Authorityof or give an opinion in respect of any matter as provided in Article 89(1)(B). Amended by QFC Reg 2010-2 (as from 9th December 2010)
Article 90 - Rights and obligations affecting Auditors and Actuaries(1) An
Authorised Firm, or any director, officer, employee, agent or contractor of the Authorised Firmshall co-operate with Auditorsor Actuariesappointed pursuant to Article 88 in the fulfilment of their respective duties as such.(2) An Auditorof, or an Actuaryacting for, an Authorised Firmunder 88(1):(A) has a right of access at all times to the Authorised Firm'sbooks, accounts and material records; and(B) is entitled to require from the Authorised Firm'sofficers such information and explanations as he reasonably considers necessary for the performance of his duties as Auditoror Actuary.(3) Any provision in an agreement between an Authorised Firmand an Auditoror Actuaryor director, officer agent or contractor of an Authorised Firmwhich is inconsistent with their respective obligations under this Part shall be void.
Article 91 - Resignation of Auditors and Actuaries
Auditoror Actuaryceases for any reason to be appointed by the Authorised Firmunder Article 88, the Auditoror Actuarymust:(1) notify the Regulatory Authorityof that fact without delay;(2) notify the Regulatory Authorityof any matter connected with its ceasing to act for the Authorised Firm, which it thinks ought to be drawn to the Regulatory Authority'sattention; or(3) if there is no such matter as described in Article 91(2), notify the Regulatory Authorityof that fact. Amended by QFC Reg 2010-2 (as from 9th December 2010)
Article 92 - Contravention
Personcommits a contravention of these Regulationsif he:(1) knowingly or recklessly:(A) gives an Auditoror Actuaryappointed pursuant to Article 88 information which the Auditoror Actuaryrequires, or is entitled to require, which is false or misleading in a material particular; or(B) omits to give an Auditoror Actuaryinformation where the omission of such information is likely to mislead or deceive; or(2) destroys or conceals information, documents and records when he knows, or ought reasonably to know, that such conduct would or could result in such Auditorsor Actuariesbeing unable to fully and effectively fulfil their functions under this Part.