Section 24
Section 24
(1)
Where, in the course of carrying out an audit of the accounts of a registered fund or those of the holder of a mutual fund licence, an approved auditor-
185
{a)
becomes aware of or has reason to believe that-
·'
(i)
a registered fund is unable, or is unlikely to continue to be able, to meet its obligations as they fall due;
(ii)
a registered fund is carrying on or attempting to carry on business or is winding-up its business voluntarily in a manner that is detrimental to the interests of its participants or to those of its creditors;
(iii)
a registered fund is carrying on or attempting to carry on business without keeping any accounting records or accounting records which are sufficient to enable its accounts to be properly audited;
(iv)
any person has or may have committed a defalcation or a breach of trust in relation to the fund's affairs, business or property;
(v)
a fraudulent activity is or may be being carried on as regards any such affairs, business or property; or
(vi)
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,
BRUNEI DARUSSALAM GOVERNMENT GAZETTE 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), an approved auditor acts in good faith, no duty to which he is subject as regards a registered fund shall be regarded as having been contravened by reason only of his having so acted.
(3)
Where an approved auditor fails or refuses to act as required in subsection ( 1), he shall be guilty of an offence and liable on conviction to a nne not exceeding $250,000, imprisonment for a term not exceeding 2 years or both.
Further information.