Securities and Futures Act 2001 · 2020 Revised Edition · Part 2A · Trade Repositories
46X. Auditors of licensed trade repositories — appointment and duties
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Despite any other provision of this Act or any other written law, every licensed trade repository must —
licensed trade repository
“licensed trade repository” means a corporation that has in force a trade repository licence granted by the Authority under section 46E(1);
on an annual basis, appoint an auditor and obtain the approval of the Authority to such appointment; and (b)where, for any reason, the auditor ceases to act for the licensed trade repository, as soon as practicable thereafter, appoint another auditor and obtain the approval of the Authority to such appointment.
An auditor must not be approved by the Authority as an auditor for a licensed trade repository unless the auditor is able to comply with such conditions in relation to the discharge of an auditor’s duties as the Authority may determine.
auditor
“auditor” means a public accountant who is registered or deemed to be registered under the Accountants Act 2004 and, in Division 1 of Part 13, when used in relation to an entity not being a company, includes —(a)a person who is duly registered, licensed, approved or otherwise authorised to practise as an auditor (such practice to include the issue of any opinion, report or other document on the audit of any financial statement) —(i)under the laws of the place where the entity is formed or constituted; or(ii)under the laws of the place of his or her practice, if the auditing standards that are or will be applied to the financial statements of the entity are —(A)auditing standards commonly applied in that place; or(B)international auditing standards (by whatever name called); or(b)such other person as the Authority may approve in any particular case to be an auditor for such entity;
The Authority may appoint an auditor for a licensed trade repository if —
the licensed trade repository fails to appoint an auditor in accordance with subsection (1); or
the Authority considers it desirable that another auditor should act with an auditor for the licensed trade repository appointed under subsection (1),and may at any time fix the remuneration to be paid by the licensed trade repository to that auditor.
The duties of an auditor appointed under subsections (1) and (3) are —
to carry out, for the year in respect of which the auditor is appointed, an audit of the accounts of the licensed trade repository; and
to make a report in respect of the latest financial statements of the licensed trade repository or, where the licensed trade repository is a parent company for which consolidated financial statements are prepared, the consolidated financial statements, in accordance with section 207 of the Companies Act 1967.
The Authority may, by written notice, impose all or any of the following duties on an auditor in addition to those in subsection (4):
a duty to submit to the Authority such additional information in relation to the auditor’s audit as the Authority considers necessary;
a duty to enlarge or extend the scope of the auditor’s audit of the business and affairs of the licensed trade repository;
a duty to carry out any other examination or establish any procedure in any particular case;
a duty to submit to the Authority a report on any of the matters mentioned in paragraphs (b) and (c).
An auditor to whom a notice is given under subsection (5) must comply with each direction specified in the notice.
The licensed trade repository must remunerate the auditor in respect of the discharge by the auditor of the duties mentioned in subsection (5).
Despite any other provision of this Act or the provisions of the Companies Act 1967, the Authority may, if it is not satisfied with the performance of any duty by an auditor of a licensed trade repository, at any time —
direct the licensed trade repository to remove the auditor; and (b)direct the licensed trade repository to appoint another auditor approved by the Authority, as soon as practicable after the removal, and the licensed trade repository must comply with such direction.
If an auditor discloses in good faith to the Authority any information mentioned in subsection (5)(a) or report mentioned in subsection (5)(d), 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.
A licensed trade repository that 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.
A licensed trade repository that fails to comply with a direction under subsection (8) 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.
Any auditor who fails to carry out any duty mentioned in subsection (4), or who fails to comply with subsection (6), 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.