Clause 47

by deleting subsection (1) and substituting the following subsection:“(1) Despite the provisions of the Companies Act (Cap. 50), every bank must —

on an annual basis, appoint an auditor and obtain the approval of the Authority to such appointment; and

where, for any reason, the auditor ceases to act for the bank, as soon as practicable thereafter, appoint another auditor and obtain the approval of the Authority to such appointment.”;

by deleting the words “banks unless he” in subsection (2) and substituting the words “a bank unless the auditor”;

by inserting, immediately after the words “The Authority may” in subsection (5), the words “, by notice in writing,”;

by inserting, immediately after subsection (5), the following subsection:“(5A) An auditor to whom a notice is given under subsection (5) must comply with each direction specified in the notice.”;

by inserting, immediately after subsection (6), the following subsection:“(6A) Despite any other provision of this Act or the provisions of the Companies Act, the Authority may, if it is not satisfied with the performance of any duty by an auditor of a bank, at any time —

direct the bank to remove the auditor; and

direct the bank to appoint another auditor approved by the Authority, as soon as practicable after the removal,and the bank must comply with the directions.”;

by deleting paragraphs (b), (c) and (d) of subsection (8) and substituting the following paragraphs:“(b)losses have been incurred which reduce the capital funds of the bank by at least 50%;

serious irregularities have occurred, including irregularities that jeopardise the security of the creditors of the bank; or

the auditor is unable to confirm that the claims of creditors of the bank are still covered by the assets,”; and

by inserting, immediately after subsection (9), the following subsections:“(10) Where an auditor discloses in good faith to the Authority —

any information referred to in subsection (5)(a) or report referred to in subsection (5)(d);

any of the matters referred to in subsection (8); or

any information in support of that matter,the disclosure is not to be treated as a breach of any restriction on the disclosure imposed by any law, contract or rules of professional conduct, and the auditor is not liable for any loss arising from the disclosure or any act or omission as a result of the disclosure.(11) A bank which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.(12) A bank which fails to comply with a direction under subsection (6A) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.(13) Any auditor who fails to carry out any duty referred to in subsection (4), or who fails to comply with subsection (5A) or (8), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.”.