On 26/05/2013,
you requested for the version in force on 26/05/2013
incorporating all amendments published on or before 26/05/2013.
The closest version currently available is that of 03/12/2001.
PART IV
ACCOUNTS AND AUDIT
45.
—(1) A licensed financial adviser shall prepare, and lodge with the Authority, such statements of accounts and other statements and in such form and manner as may be prescribed.
(2) A licensed financial adviser shall —
(a)
keep, or cause to be kept, such books as will sufficiently explain the transactions and financial position of the financial adviser in Singapore and enable true and fair profit and loss accounts and balance-sheets to be prepared from time to time; and
(b)
keep such books, or cause such books to be kept, in such manner as will enable them to be conveniently and properly audited.
(3) A licensed financial adviser shall retain such books as may be required to be kept under this Act for such period as may be prescribed.
(4) An entry in the books of a licensed financial adviser required to be kept in accordance with this Division shall be deemed to have been made by, or with the authority of, the licensed financial adviser.
(5) Any licensed financial adviser which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.
(6) Any licensed financial adviser which contravenes subsection (2) or (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
46.
—(1) A licensed financial adviser shall —
(a)
furnish such returns and records, relating to its business, to the Authority in such form and manner as may be prescribed or as may be notified in writing by the Authority; and
(b)
furnish such information relating to its business as the Authority may require.
(2) Any licensed financial adviser which contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.
47.
—(1) A licensed financial adviser shall appoint an auditor to audit its accounts and statements prepared under section 45(1) and where, for any reason, the auditor ceases to act for such financial adviser, the financial adviser shall, as soon as practicable thereafter, appoint another auditor.
(2) Any licensed financial adviser which contravenes this section shall be guilty of an offence.
48.
—(1) A licensed financial adviser shall, in respect of each financial year —
(a)
prepare a true and fair profit and loss account and a balance-sheet made up to the last day of the financial year; and
(b)
lodge that account and balance-sheet with the Authority within 5 months, or such extension thereof permitted by the Authority under subsection (2), after the end of the financial year together with a report in the prescribed form of an auditor appointed under section 47 on the account and balance-sheet and such other statements lodged under section 45(1).
(2) Where an application for an extension of the period of 5 months specified in subsection (1) has been made by a licensed financial adviser to the Authority and the Authority is satisfied that there is any special reason for requiring the extension, the Authority may extend the period by not more than 4 months, subject to such conditions as the Authority may think fit to impose.
(3) 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 licensed financial adviser under section 47 —
(a)
at any time direct the licensed financial adviser to remove the auditor; and
(b)
direct the licensed financial adviser, as soon as practicable thereafter, to appoint another auditor,
and the licensed financial adviser shall comply with such direction.
(4) No person shall act as an auditor for any licensed financial adviser unless —
(a)
he has a place of business in Singapore; and
(b)
he is approved under section 9 of the Companies Act as a company auditor for the purposes of that Act.
(5) Any licensed financial adviser which contravenes subsection (1)(b) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $500 for every day or part thereof that the lodgment is late, subject to a maximum of $50,000.
(6) Any licensed financial adviser which contravenes any condition imposed under subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
(7) Any licensed financial adviser which contravenes subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
(8) Any person who contravenes subsection (4) shall be guilty of an offence.
49.
—(1) Where, in the performance of his duties as an auditor for a licensed financial adviser, an auditor becomes aware of —
(a)
any matter which, in his opinion, adversely affects or may adversely affect the financial position of the financial adviser to a material extent;
(b)
any matter which, in his opinion, constitutes or may constitute a contravention of any provision of this Act or an offence involving fraud or dishonesty; or
(c)
any irregularity that has or may have a material effect upon the accounts has occurred, including any irregularity that jeopardises the moneys or other assets of the clients of the financial adviser,
he shall immediately thereafter send a report in writing of the matter or the irregularity to the Authority.
(2) The Authority may impose all or any of the following duties on an auditor for a licensed financial adviser:
(a)
a duty to submit to the Authority such additional information in relation to his audit as the Authority considers necessary;
(b)
a duty to enlarge or extend the scope of his audit of the business and affairs of the financial adviser;
(c)
a duty to carry out any other examination or establish any procedure in any particular case;
(d)
a duty to submit a report to the Authority on any of the matters referred to in paragraphs (b) and (c),
and the auditor shall carry out such duty or duties.
(3) The licensed financial adviser shall remunerate the auditor in respect of the discharge of such duty or duties as the Authority may impose on the auditor under subsection (2).
(4) Any auditor who contravenes subsection (1) or (2) shall be guilty of an offence.
(5) Any licensed financial adviser which contravenes subsection (3) shall be guilty of an offence.
50.
—(1) Where —
(a)
a licensed financial adviser fails to lodge an auditor’s report under section 48(1)(b); or
(b)
the Authority receives a report under section 49(1),
the Authority may, without prejudice to its powers under section 49(2), if it is satisfied that it is in the interests of the financial adviser, its clients or the general public to do so, appoint in writing an auditor to examine and audit, either generally or in relation to any particular matter, the books of the financial adviser.
(2) Where the Authority is of the opinion that the whole or any part of the costs and expenses of an auditor appointed by the Authority under subsection (1) should be borne by the licensed financial adviser, the Authority may, in writing, direct the licensed financial adviser to pay a specified amount, being the whole or part of such costs and expenses, within such time and in such manner as may be specified in the direction.
(3) Where a licensed financial adviser contravenes a direction under subsection (2) to pay the specified amount or any part thereof, such amount may be sued for and recovered by the Authority as a civil debt.
(4) An auditor appointed under subsection (1) shall, on the conclusion of the examination and audit, make a report thereon to the Authority.
(5) Any auditor who contravenes subsection (4) shall be guilty of an offence.
51.
—(1) An auditor appointed by the Authority under section 50(1) may, for the purpose of carrying out an examination and audit —
(a)
examine, on oath or affirmation, any officer, employee or agent of the licensed financial adviser, or any other auditor for the licensed financial adviser appointed under this Act;
(b)
require any officer, employee or agent of the licensed financial adviser, or any other auditor for the licensed financial adviser appointed under this Act, to produce any of the books held by or on behalf of the licensed financial adviser relating to its business, or to make copies of or take extracts from, or retain possession of, such books for such period as may be necessary to enable them to be inspected;
(c)
employ such persons as he considers necessary to assist him in carrying out the examination and audit; and
(d)
authorise in writing any person employed by him to do, in relation to the examination and audit, any act or thing that he could do as an auditor under this subsection, other than the examination of a person on oath or affirmation.
(2) Any person who, without reasonable excuse, refuses or fails to answer any question put to him, or contravenes any request made to him, by an auditor appointed under section 50(1) or a person authorised under subsection (1)(d) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both.
52.
—(1) Except as may be necessary for the carrying into effect of the provisions of this Act or so far as may be required for the purposes of any legal proceedings, whether civil or criminal, an auditor carrying out any duty imposed under section 49(2) or appointed under section 50(1), and any employee of such auditor, shall not disclose any information which may come to his knowledge in the course of performing his duties as such auditor or employee, as the case may be, to any person other than —
(a)
the Authority; and
(b)
in the case of an employee of such auditor, the auditor.
(2) Any person who contravenes this section shall be guilty of an offence and shall be liable on conviction —
(a)
in the case of an auditor, to a fine not exceeding $50,000; or
(b)
in the case of an employee of an auditor, to a fine not exceeding $25,000.
53.
—(1) No auditor or employee of such auditor shall, in the absence of malice on his part, be liable to any action for defamation at the suit of any person in respect of —
(a)
any statement made orally or in writing in the discharge of his duties under this Part; or
(b)
(2) Subsection (1) shall not restrict or otherwise affect any right, privilege or immunity that, apart from this section, the auditor or his employee has as a defendant in an action for defamation.
54.
—(1) Any person who, with intent to prevent, delay or obstruct the carrying out of any examination and audit under this Part —
(a)
destroys, conceals or alters any book relating to the business of a licensed financial adviser; or
(b)
sends, or conspires with any other person to send, out of Singapore, any book or asset of any description belonging to, in the possession of or under the control of the licensed financial adviser,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both.
(2) If, in any proceedings for an offence under subsection (1), it is proved that the person charged with the offence —
(a)
destroyed, concealed or altered any book referred to in subsection (1)(a); or
(b)
sent or conspired to send, out of Singapore, any book or asset referred to in subsection (1)(b),
the onus of proving that, in so doing, he did not act with intent to prevent, delay or obstruct the carrying out of an examination and audit under this Part shall lie on him.
55.
—(1) A licensed financial adviser shall take reasonable steps —
(a)
to prevent falsification of the books required to be kept by it under this Act; and
(b)
to facilitate the discovery of any falsification of any such book.
(2) Any licensed financial adviser which contravenes this section shall be guilty of an offence.