Annual account and audit, etc.
94.—(1)  A registered insurance broker must prepare such statements of account and other statements and in such form and manner as may be prescribed and lodge them with the Authority.
[23/2003; 11/2013]
(2)  A licensed insurer or registered insurance broker must —
(a)cause to be kept in Singapore such books and records as will sufficiently explain the transactions and financial position of the insurer or insurance broker (as the case may be) in Singapore and enable the insurer or insurance broker to comply with the requirements of this section and, in the case of the insurer, section 95; and
(b)cause those books and records to be kept in such manner as to enable them to be conveniently and properly audited.
[11/2013]
(3)  A licensed insurer or an authorised reinsurer must prepare and lodge with the Authority such statements of accounts and other statements relating to its business and in such form and manner as may be prescribed or specified in directions by the Authority.
[11/2013]
(4)  For the purposes of subsection (3) —
(a)a licensed insurer must have such statements of accounts or part thereof audited by an auditor who satisfies subsection (7), in such form and manner as the Authority may prescribe or specify in directions; and
(b)despite the provisions of the Companies Act 1967 or the Co‑operative Societies Act 1979 (as the case may be) every licensed insurer, other than a captive insurer and a marine mutual insurer, must appoint an auditor annually.
[11/2013]
(5)  A registered insurance broker must have its accounts audited for each financial year for which statements of accounts and other statements are prepared in accordance with regulations prescribed under subsection (1).
(6)  A registered insurance broker must appoint an auditor to carry out an audit of its accounts and other statements prepared in accordance with subsection (1) and where, for any reason, the auditor ceases to act for the registered insurance broker, the registered insurance broker must, as soon as practicable thereafter, appoint another auditor.
(7)  A person must not act as auditor for any licensed insurer or registered insurance broker unless —
(a)the person has a place of business in Singapore;
(b)the person is approved under section 10 of the Companies Act 1967 as a company auditor for the purposes of that Act; and
(c)in the case of a licensed insurer, the licensed insurer has obtained the approval of the Authority to appoint that person as an auditor.
[11/2013]
(8)  An auditor must not be approved by the Authority as an auditor for a licensed insurer unless the auditor is able to comply with such conditions in relation to the discharge of the auditor’s duties as may be determined by the Authority.
[11/2013]
(9)  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 insurer or registered insurance broker —
(a)at any time direct the licensed insurer or registered insurance broker to remove the auditor; and
(b)direct the licensed insurer or registered insurance broker, as soon as practicable thereafter, to appoint another auditor,
and the licensed insurer or registered insurance broker, must comply with such direction.
[11/2013]
(10)  The Authority may impose all or any of the following duties on an auditor:
(a)a duty to submit such additional information in relation to the audit as the Authority considers necessary;
(b)a duty to enlarge or extend the scope of the audit of the business and affairs of the licensed insurer or registered insurance broker, as the case may be;
(c)a duty to carry out any other examination or establish any procedure in any particular case;
(d)a duty to submit a report on any of the matters referred to in paragraphs (b) and (c),
and the licensed insurer or registered insurance broker (as the case may be) must remunerate the auditor in respect of the discharge by the auditor of all or any of these duties.
[11/2013]
(11)  An auditor’s report made under subsection (10) must be lodged by the insurer with the Authority together with the statements of accounts lodged under subsection (3).
[23/2003; 11/2013]
(12)  If an auditor, in the course of the performance of the auditor’s duties as an auditor of a licensed insurer or registered insurance broker, is satisfied that —
(a)there has been a serious contravention of any provision of this Act or that an offence involving fraud or dishonesty has been committed;
(b)serious irregularities have occurred, including irregularities that jeopardise the interests of policy owners;
(c)in the case of a licensed insurer —
(i)where the insurer is incorporated or established in Singapore, the insurer is unable to meet its obligations; or
(ii)any transaction or dispute has taken place which will have a material effect on the solvency of any insurance fund established by the insurer under this Act; or
(d)in the case of a registered insurance broker, the insurance broker is unable to meet its obligations,
the auditor must immediately report the matter in writing to the Authority.
[11/2013]
(13)  In the case of a company incorporated or established outside Singapore, the audit required by subsection (4) need not extend beyond the business for which an insurance fund is maintained under this Act.
[11/2013]
(14)  The Authority may, from time to time and in such form or manner as it considers appropriate, publish any information obtained or received by the Authority under this section or section 95.
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[11/2013]