21. Section 36 of the Insurance Act is amended —
(a)
by inserting, immediately after the words “registered insurer” in subsection (1) and in the 1st line of subsection (4), the words “or registered insurance broker”;
(b)
by deleting subsection (2) and substituting the following subsection:
“(2) A registered insurer or registered insurance broker shall —
(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 37; and
(b)
cause those books and records to be kept in such manner as to enable them to be conveniently and properly audited.”;
(c)
by inserting, immediately after subsection (3), the following subsections:
“(3A) A registered insurance broker shall 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).
(3B) A registered insurance broker shall 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 shall, as soon as practicable thereafter, appoint another auditor.”;
(d)
by inserting, immediately before the word “he” in subsection (4)(c), the words “in the case of a registered insurer,”;
(e)
by inserting, immediately after subsection (5), the following subsection:
“(5A) Notwithstanding any other provision of this Act or the provisions of the Companies Act (Cap. 50), the Authority may, if it is not satisfied with the performance of duties by an auditor appointed by a registered insurer or registered insurance broker —
(a)
at any time direct the registered insurer or registered insurance broker to remove the auditor; and
(b)
direct the registered insurer or registered insurance broker, as soon as practicable thereafter, to appoint another auditor,
and the registered insurer or registered insurance broker, shall comply with such direction.”;
(f)
by deleting the words “the insurer” in subsection (6)(b) and substituting the words “the registered insurer or registered insurance broker, as the case may be”;
(g)
by deleting the words “the insurer” in the penultimate line of subsection (6) and substituting the words “the registered insurer or registered insurance broker, as the case may be,”;
(h)
by deleting the words “by the insurer” in subsection (7); and
(i)
by deleting subsection (8) and substituting the following subsection:
“(8) If an auditor, in the course of the performance of his duties as an auditor of a registered 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 registered 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 shall immediately report the matter in writing to the Authority.”.