28. Reports by auditor to Authority in certain cases
Feedback & supportIf, during the performance of his duties as auditor for a futures broker, an auditor —
auditor
“auditor” means an approved company auditor as defined in section 4 of the Companies Act;
becomes aware of any matter which in his opinion adversely affects or may adversely affect the financial position of the futures broker to a material extent; or
futures broker
“futures broker” means any person, whether as principal or agent, who —(a)carries on the business of soliciting or accepting orders, for the purchase or sale of any commodity under a futures contract on any Futures Exchange or futures market whether or not that person accepts any money, securities or property (or extends credit in lieu thereof) to margin, guarantee or secure any contract or transaction that may result therefrom; or(b)carries on the business of leveraged foreign exchange trading,whether the business is part of, or is carried on in conjunction with, any other business;
discovers evidence of a contravention by the futures broker of section 25 or 37,he shall, as soon as practicable thereafter, send to the Authority a report in writing of the matter or the contravention.