Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Appointment of auditors
51.—(1) A licensed financial adviser must appoint an auditor to audit its accounts and statements prepared under section 49(1) and where, for any reason, the auditor ceases to act for such financial adviser, the financial adviser must, as soon as practicable thereafter, appoint another auditor. (2) Any licensed financial adviser who contravenes this section shall be guilty of an offence.[47
Lodgment of annual accounts, etc., by licensed financial adviser
52.—(1) A licensed financial adviser must, in respect of each financial year —(a) prepare a true and fair profit and loss account and a balance sheet made up to the last day of the financial year; and (b) lodge that account and balance sheet with the Authority within 5 months, or such extension thereof permitted by the Authority under subsection (2), after the end of the financial year, together with a report in the prescribed form of an auditor appointed under section 51 on the account and balance sheet and such other statements lodged under section 49(1). (2) Where an application for an extension of the period of 5 months specified in subsection (1) has been made by a licensed financial adviser to the Authority and the Authority is satisfied that there is any special reason for requiring the extension, the Authority may extend the period by not more than 4 months, subject to such conditions as the Authority may think fit to impose. (3) 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 duties by an auditor appointed by a licensed financial adviser under section 51 —(a) at any time direct the licensed financial adviser to remove the auditor; and (b) direct the licensed financial adviser, as soon as practicable thereafter, to appoint another auditor, and the licensed financial adviser must comply with such direction. (4) Any licensed financial adviser who contravenes subsection (1)(b) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $500 for every day or part of a day that the lodgment is late, subject to a maximum of $50,000. (5) Any licensed financial adviser who contravenes any condition imposed under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000. (6) Any licensed financial adviser who contravenes subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.[48
Reports by auditor to Authority in certain cases
53.—(1) Where, in the performance of his or her duties as an auditor for a licensed financial adviser, an auditor becomes aware of —(a) any matter which, in the auditor’s opinion, adversely affects or may adversely affect the financial position of the financial adviser to a material extent; (b) any matter which, in the auditor’s opinion, constitutes or may constitute a contravention of any provision of this Act or an offence involving fraud or dishonesty; or (c) any irregularity that has or may have a material effect upon the accounts, including any irregularity that jeopardises the moneys or other assets of the clients of the financial adviser, the auditor must immediately thereafter submit a report in writing of the matter or the irregularity to the Authority. (2) The Authority may impose all or any of the following duties on an auditor for a licensed financial adviser:(a) a duty to submit to the Authority such additional information in relation to the auditor’s audit as the Authority considers necessary; (b) a duty to enlarge or extend the scope of the auditor’s audit of the business and affairs of the financial adviser; (c) a duty to carry out any other examination or establish any procedure in any particular case; (d) a duty to submit a report to the Authority on any of the matters referred to in paragraphs (b) and (c), and the auditor must carry out such duty or duties. (3) The licensed financial adviser must remunerate the auditor in respect of the discharge of such duty or duties as the Authority may impose on the auditor under subsection (2). (4) Any auditor who contravenes subsection (1) or (2) shall be guilty of an offence. (5) Any licensed financial adviser who contravenes subsection (3) shall be guilty of an offence.[49
Power of Authority to appoint auditor
54.—(1) Where —(a) a licensed financial adviser fails to lodge an auditor’s report under section 52(1)(b); or (b) the Authority receives a report under section 53(1), the Authority may, without affecting its powers under section 53(2), if it is satisfied that it is in the interests of the financial adviser, its clients or the general public to do so, appoint in writing an auditor to examine and audit, either generally or in relation to any particular matter, the books of the financial adviser. (2) Where the Authority is of the opinion that the whole or any part of the costs and expenses of an auditor appointed by the Authority under subsection (1) should be borne by the licensed financial adviser, the Authority may, in writing, direct the licensed financial adviser to pay a specified amount, being the whole or part of such costs and expenses, within such time and in such manner as may be specified in the direction. (3) Where a licensed financial adviser fails to comply with a direction under subsection (2) to pay the specified amount or any part thereof, such amount may be sued for and recovered by the Authority as a civil debt. (4) An auditor appointed under subsection (1) must, on the conclusion of the examination and audit, submit a report thereon to the Authority. (5) Any auditor who contravenes subsection (4) shall be guilty of an offence.[50
Powers of auditor appointed by Authority
55.—(1) An auditor appointed by the Authority under section 54(1) may, for the purpose of carrying out an examination and audit —(a) examine, on oath or affirmation, any officer, employee or agent of the licensed financial adviser, or any other auditor for the licensed financial adviser appointed under this Act; (b) require any officer, employee or agent of the licensed financial adviser, or any other auditor for the licensed financial adviser appointed under this Act, to produce any of the books held by or on behalf of the licensed financial adviser relating to its business, or to make copies of or take extracts from, or retain possession of, such books for such period as may be necessary to enable them to be inspected; (c) employ such persons as the auditor considers necessary to assist him or her in carrying out the examination and audit; and (d) authorise in writing any person employed by the auditor to do, in relation to the examination and audit, any act or thing that he or she could do as an auditor under this subsection, other than the examination of a person on oath or affirmation. (2) Any person who, without reasonable excuse, refuses or fails to answer any question put to him or her, or fails to comply with any request made to him or her, by an auditor appointed under section 54(1) or a person authorised under subsection (1)(d) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both.[51
Restriction on auditor’s and employee’s right to communicate certain matters
56.—(1) Except as may be necessary for the carrying into effect of the provisions of this Act or so far as may be required for the purposes of any legal proceedings, whether civil or criminal, an auditor carrying out any duty imposed under section 53(2) or appointed under section 54(1), and any employee of such auditor, must not disclose any information which may come to his or her knowledge or possession in the course of performing his or her duties as such auditor or employee (as the case may be) to any person other than —(a) the Authority; and (b) in the case of an employee of such auditor, the auditor. (2) Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction —(a) in the case of an auditor, to a fine not exceeding $50,000; or (b) in the case of an employee of an auditor, to a fine not exceeding $25,000.[52
Defamation
57.—(1) An auditor or employee of such auditor must not, in the absence of malice on his or her part, be liable to any action for defamation at the suit of any person in respect of —(a) any statement made orally or in writing in the discharge of his or her duties under this Part; or (b) the submission of any report to the Authority under section 53(1) or (2)(d) or 54(4). (2) Subsection (1) does not restrict or otherwise affect any right, privilege or immunity that, apart from this section, the auditor or his or her employee has as a defendant in an action for defamation.[53
Offence to destroy, conceal, alter, etc., records
58.—(1) Any person who, with intent to prevent, delay or obstruct the carrying out of any examination or audit under this Part —(a) destroys, conceals or alters any book relating to the business of a licensed financial adviser; or (b) sends, or conspires with any other person to send, out of Singapore, any book or asset of any description belonging to, in the possession of or under the control of the licensed financial adviser, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both. (2) If, in any proceedings for an offence under subsection (1), it is proved that the person charged with the offence —(a) destroyed, concealed or altered any book mentioned in subsection (1)(a); or (b) sent, or conspired to send, out of Singapore, any book or asset mentioned in subsection (1)(b), the onus of proving that, in so doing, the person did not act with intent to prevent, delay or obstruct the carrying out of an examination and audit under this Part lies on the person. [54
Safeguarding of records by licensed financial adviser
59.—(1) A licensed financial adviser must take reasonable steps —(a) to prevent falsification of the books required to be kept by it under this Act; and (b) to facilitate the discovery of any falsification of any such book. (2) Any licensed financial adviser who contravenes this section shall be guilty of an offence.[55
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. Read the official text ↗
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
The Singapore legislation on this platform is subject to copyright of the Singapore Government and is used/reproduced for the purposes of this platform with the permission of the Attorney-General's Chambers. Users of this platform may check Singapore Statutes Online for the latest version of the Singapore legislation.