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Financial Sector Regulation Act, 2017 (Act No. 9 of 2017)

Chapter 17 : Miscellaneous

Part 1 : Information sharing and reporting

252. Reporting by auditors to financial sector regulators

 

(1)

(a) An auditor of a licensed financial institution, or of a holding company of a financial conglomerate must, without delay, submit a detailed written report to the Prudential Authority, the governing body of the financial institution and, in the case of a financial conglomerate, the holding company of the financial institution, about any matter relating to the business of the financial institution or a company within the conglomerate, being a matter—
(i) which the auditor becomes aware of in the course of performing functions and duties as auditor; and
(ii) that the auditor considers—
(aa) is causing or is likely to cause the financial institution to be financially unsound;
(bb) is contravening or may contravene a financial sector law; or
(cc) may result in an audit not being completed or may result in a qualified or adverse opinion on accounts.
(b) An auditor must also submit any report or other document or particulars about the matter contemplated in section 45(1)(a) and (3)(c) of the Auditing Profession Act, 2005 (Act No. 26 of 2005), to the Prudential Authority.

 

(2) An auditor of a licensed financial institution or of a holding company of a financial conglomerate who resigns or whose appointment is terminated must submit to the Prudential Authority—
(a) a written statement on the reasons for resignation or the reasons that the auditor believes are the reasons for the termination; and
(b) any report contemplated in section 45(1)(a) and (3)(c) of the Auditing Profession Act, 2005 (Act No. 26 of 2005), that the auditor would, but for the resignation or termination, have had reason to submit.

 

(3)

(a) The furnishing, in good faith, by an auditor of a report or information under  subsection (1) or (2) is not a contravention of a law, a breach of a contract or a breach of a code of professional conduct.
(b) A failure, in good faith, by an auditor to comply with this section does not confer upon any person a right of action against the auditor.