Investment Business (Reporting Accountants) (Facts and Matters of Material Significance) Regulations 2006
INVESTMENT BUSINESS (REPORTING ACCOUNTANTS)
(FACTS AND MATTERS OF MATERIAL SIGNIFICANCE)
REGULATIONS 2006
1
BR 60 / 2006
INVESTMENT BUSINESS ACT 2003
2003 : 20
INVESTMENT BUSINESS (REPORTING ACCOUNTANTS)
(FACTS AND MATTERS OF MATERIAL SIGNIFICANCE)
REGULATIONS 2006
The Minister of Finance, in exercise of the powers conferred by
section 86(1) of the Investment Business Act 2003, and after
consultation with the Authority, makes the following regulations:
Citation and commencement
1 These Regulations may be cited as the Investment Business
(Reporting Accountants) (Facts and Matters of Material Significance)
Regulations 2006 and shall come into operation on the 15th day of July,
2006.
Interpretation
2 In these Regulations —
“Act” means the Investment Business Act 2003;
“reporting accountant” means an auditor or an accountant who,
under section 42(2A) or 45(2) of the Act, is under a duty to give
notice to the Authority of specified facts or matters.
Facts and matters of material significance
3 For the purposes of sections 42(2A) and 45(2) of the Act, where a
reporting accountant —
INVESTMENT BUSINESS (REPORTING ACCOUNTANTS)
(FACTS AND MATTERS OF MATERIAL SIGNIFICANCE)
REGULATIONS 2006
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(a) identifies a material misstatement in the financial
statements resulting from fraud, error or illegal acts or
the consequences of them;
(b) concludes that there is substantial doubt as to the
ability of the investment provider to continue as a going
concern for a period of one year from the balance sheet
date;
(c) identifies adjustments to the financial statements which
individually or in aggregate indicate to him that the
previous year’s audited annual financial statements or
the current year’s unaudited interim financial
statements, prepared according to generally accepted
accounting principles issued to the shareholders were
materially misstated;
(d) identifies a material weakness in internal control;
(e) has unresolved disagreements with management
pertaining to the application of generally accepted
accounting principles that could reasonably be expected
to lead in the future to material misstatements of the
annual or interim financial statements, prepared
according to generally accepted accounting principles to
be issued to the shareholders in the ensuing financial
year;
(f) identifies any evidence of deliberate attempts by a chief
executive or other senior executive to mislead the
Authority through the provision of materially false or
misleading information; or
(g) identifies evidence of fraud or attempted fraud by a chief
executive or other senior executive, or has concerns of
such a serious nature as to damage materially his
confidence in the integrity of the senior management of
the institution,
then those facts and matters are of material significance for the
discharge, in relation to the investment provider, of the Authority’s
functions under the Act.
(2) For the purposes of paragraph (1)(d), “material weakness in
internal control” means a deficiency in which the design or operation of
one or more of the internal control components of the institution does
not reduce to a relatively low level the risk that misstatements caused by
error or fraud in amounts that would be material in relation to the
financial statements being audited may occur and fail to be detected
INVESTMENT BUSINESS (REPORTING ACCOUNTANTS)
(FACTS AND MATTERS OF MATERIAL SIGNIFICANCE)
REGULATIONS 2006
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within a timely period by employees in the normal course of performing
their assigned functions.
Made this 21st day of June, 2006
Minister of Finance
