17.—(1) Subject to paragraph (4) and regulations 14(3) and 20, a Tier 1 insurer shall have an Audit Committee comprising —
(a)
at least 3 members of the Board of the Tier 1 insurer, all of whom are independent from management and business relationships with the Tier 1 insurer; and
(b)
at least a majority of directors (including the chairman of the Audit Committee) who are independent directors.
(2) The Audit Committee shall, in addition to such other responsibilities as may be determined by the Board or provided under written law, be responsible for the adequacy of the external and internal audit functions of the Tier 1 insurer, including reviewing the scope and results of audits carried out in respect of the operations of the Tier 1 insurer and the independence and objectivity of the Tier 1 insurer’s external auditors.
(3) The Audit Committee shall maintain records of all its meetings.
(4) If a member of the Audit Committee resigns, ceases to be a director or for any other reason ceases to be a member of the Audit Committee —
(a)
the Tier 1 insurer shall notify the Authority of the event within 14 days after the occurrence of the event; and
(b)
if this results in a breach of any requirement under paragraph (1), the Board shall, within 3 months after that event, appoint such number of new members as may be required to rectify the composition of the Audit Committee in accordance with that requirement.
(5) Any Tier 1 insurer which contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
(6) Any Tier 1 insurer which contravenes paragraph (4)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.