28. Additional powers of Board in respect of auditors

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(1)

Despite the provisions of the Companies Act 1967 or anything contained in this Part, the Board may —

(a)

itself appoint an auditor under this Part; and

(b)

impose all or any of the following duties on an auditor of a commodity market, a clearing house, a commodity broker, a commodity trading adviser or a commodity pool operator, as the case may be:

(i)

a duty to submit such additional information in relation to the audit as the Board considers necessary;

(ii)

a duty to enlarge or extend the scope of the audit of the business and affairs of a commodity market, a clearing house, a commodity trading adviser or a commodity pool operator;

(iii)

a duty to carry out any other examination or establish any procedure in any particular case;

(iv)

a duty to submit a report on any of the matters referred to in sub-paragraphs (ii) and (iii),and a commodity market, a clearing house, a commodity broker, a commodity trading adviser or a commodity pool operator (as the case may be) must remunerate the auditor in respect of the discharge of all or any of the additional duties.

(2)

If an auditor in the course of the performance of the auditor’s duties as an auditor of a commodity market, a clearing house, a commodity broker, a commodity trading adviser or a commodity pool operator (as the case may be) is satisfied that —

(a)

there has been a serious breach or non-observance of this Act or any regulations made under this Act, or that otherwise a criminal offence involving fraud or dishonesty has been committed;

(b)

serious irregularities have occurred, including irregularities that jeopardise the funds, securities or property of the customers; or

(c)

the auditor is unable to confirm whether claims of creditors are still covered by the assets,the auditor must immediately report the matter to the Board.

(3)

An auditor appointed under subsection (1)(a) has all the powers conferred upon an auditor under section 24.

(4)

Where the Board is of the opinion that the whole or any part of the costs and expenses of an auditor appointed under subsection (1)(a) should be borne by a commodity market, a clearing house, a commodity broker, a commodity trading adviser or a commodity pool operator (as the case may be), the Board may by written order direct that the market, clearing house, broker, trading adviser or pool operator (as the case may be) pay a specified amount (being the whole or part of the costs and expenses) within the time and manner specified in the order.

Terms defined in s 2

auditor
Defined · s 2
“auditor” means a public accountant within the meaning of the Companies Act 1967;
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Board
Defined · s 2
“Board” means the Enterprise Singapore Board established by section 3 of the Enterprise Singapore Board Act 2018;
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clearing house
Defined · s 2
“clearing house”, in relation to a commodity market, means a body corporate that —(a)clears and settles commodity contracts; and(b)makes adjustments to the contractual obligations arising out of those commodity contracts;
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commodity broker
Defined · s 2
“commodity broker” means a person who (whether as principal or agent) carries on the business of soliciting, or accepting orders, for the purchase or sale of any commodity by way of or relating to any commodity contract, whether or not the business is part of, or is carried on in conjunction with, any other business;
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commodity market
Defined · s 2
“commodity market” means —(a)a market, whether in Singapore or elsewhere, at which commodity contracts are regularly made; or(b)an electronic system, whether operating in Singapore or elsewhere, through which trading in commodity contracts is carried out, but excludes an electronic facility which merely provides price or other information relating to commodity contracts (whether that facility is part of or carried on in conjunction with the provision of any other information not related to commodity contracts) and which does not permit users of the facility to channel orders for, execute transactions in, or make markets in, commodity contracts;
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commodity pool operator
Defined · s 2
“commodity pool operator” means any person who carries on a business in the nature of a collective investment scheme within the meaning of section 2 of the Securities and Futures Act 2001 and who, in connection therewith, accepts or receives from other persons funds, security or property, either directly or through capital contributions, the sale of shares or other forms of security or otherwise for the purpose of trading in commodity contracts but does not include any person that the Board may prescribe;
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commodity trading adviser
Defined · s 2
“commodity trading adviser” means any person who —(a)carries on the business of advising others (directly or indirectly, through publications or writings, or by whatever means or media) on the making of commodity contracts, including the advisability of trading in any commodity contract made or to be made on, or subject to the business rules of, a commodity market;(b)as part of a regular business, issues or promulgates analyses or reports concerning the making of commodity contracts; or(c)pursuant to a contract or an arrangement with a customer or other person, undertakes on behalf of that customer or other person (whether on a discretionary authority or otherwise granted by the customer or other person) to make any commodity contract for the purposes of managing the client’s funds, but does not include —(i)a bank or merchant bank licensed under the Banking Act 1970;(ii)a commodity broker, commodity broker’s representative, commodity pool operator or commodity pool operator’s representative;(iii)a person who carries on the business of printing or publishing a newspaper and is the holder of a permit issued under the Newspaper and Printing Presses Act 1974 where —(A)insofar as the newspaper is distributed generally to the public it is distributed only to subscribers to, and purchasers of, the newspaper for value;(B)the advice is given or the analyses or reports are issued or promulgated only through that newspaper; and(C)that person receives no commission or other consideration for giving the advice or for issuing or promulgating the analyses or reports; and(iv)any other person that the Board may prescribe,if and only if the carrying on of the business by the abovementioned persons is solely incidental to the carrying on of their business;
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