Section 23
Section 23
(1)
Where, in the course of managing, administering or otherwise acting as regards a registered fund, a person to whom this section applies -
fa) becomes aware of or has reason to believe that-
(i)
any person has or may have committed a defalcation or a breach of trust in relation to the fund's affairs, business or property;
(ii)
a fraudulent activity is or may be being carried on as regards such affairs, business or property; or
(iii)
there is or may be an attempt or a conspiracy by one or more persons to carry on such a fraudulent activity; or
(b)
is of opinion that a matter exists which either adversely affects the financial position of the fund to a significant extent or is otherwise detrimental to the interests of the fund's participants or the interests of its creditors, he shall, as soon as practicable, inform the Authority of his knowledge, belief or opinion giving his reasons therefor and as regards any such defalcation, breach of trust, fraudulent activity, attempt or conspiracy, to the extent [if at all) that he is aware of them, the names of the person or persons involved or otherwise concerned.
(2)
Where, in performing the duty imposed on him by subsection {1}, a person to whom this section applies acts in good faith, no duty to which he is 184
subject as regards a registered fund shall be regarded as having been contravened by reason only of his having so acted.
(3)
Where a person fails or refuses to act as required in subsection p), he shall be guilty of an offence and liable on conviction to a fine not exceeding
$250,000, imprisonment for a term not exceeding 2 years or both.
(4)
This section applies to any person who is the holder of a licence referred to in section 6(2).
Duty of auditors to inform Authority.