—(1) If an auditor of a designated clearing house, in the course of the performance of his duties, becomes aware of —
any matter which, in his opinion, adversely affects or may adversely affect the financial position of the designated clearing house to a material extent;
any matter which, in his opinion, constitutes or may constitute a breach of any provision of this Act or an offence involving fraud or dishonesty; or
any irregularity that has or may have a material effect upon the accounts of the designated clearing house, including any irregularity that affects or jeopardises, or may affect or jeopardise, the funds or property of investors,
the auditor shall immediately send to the Authority a written report of the matter or the irregularity.
(2) An auditor shall not, in the absence of malice on his part, be liable to any action for defamation at the suit of any person in respect of any statement made in his report under subsection (1).
(3) Subsection (2) shall not restrict or affect any right, privilege or immunity that the auditor may have, apart from this section, as a defendant in an action for defamation.
(4) The Authority may impose all or any of the following duties on an auditor of a designated clearing house:
a duty to submit such additional information and reports in relation to his audit as the Authority considers necessary;
a duty to enlarge, extend or alter the scope of his audit of the business and affairs of the designated clearing house;
a duty to carry out any other examination or establish any procedure in any particular case;
and the auditor shall carry out such duties.
(5) The designated clearing house shall remunerate the auditor in respect of the discharge by him of all or any of the duties referred to in subsection (4).
[E (DM) A, s. 16]