—(1) A registered insurer or registered insurance broker shall prepare such statements of account and other statements and in such form and manner as may be prescribed and lodge them with the Authority.
(2) A registered insurer or registered insurance broker shall —
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
cause those books and records to be kept in such manner as to enable them to be conveniently and properly audited.
(3) A registered insurer shall have its accounts audited for each accounting period for which statements of account are prepared in accordance with regulations prescribed under subsection (1).
(4) 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).
(5) 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.
(6) No person shall act as auditor for any registered insurer or registered insurance broker unless —
he has a place of business in Singapore;
in the case of a registered insurer, he has the approval of the Authority.
(7) An auditor shall not be approved by the Authority as an auditor for registered insurers unless he is able to comply with such conditions in relation to the discharge of his duties as may be determined by the Authority.
(8) Notwithstanding any other provision of this Act or the provisions of the Companies Act, 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 —
at any time direct the registered insurer or registered insurance broker to remove the auditor; and
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.
(9) The Authority may impose all or any of the following duties on an auditor:
a duty to submit such additional information in relation to his audit as the Authority considers necessary;
a duty to enlarge or extend the scope of his audit of the business and affairs of the registered insurer or registered insurance broker, as the case may be;
a duty to carry out any other examination or establish any procedure in any particular case;
and the registered insurer or registered insurance broker, as the case may be, shall remunerate the auditor in respect of the discharge by him of all or any of these duties.
(10) An auditor’s report made under subsection (9) shall be lodgedwith the Authority together with the statements of accounts lodged under subsection (1).
(11) 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 —
there has been a serious contravention of any provision of this Act or that an offence involving fraud or dishonesty has been committed;
serious irregularities have occurred, including irregularities that jeopardise the interests of policy owners;
in the case of a registered insurer —
where the insurer is incorporated or established in Singapore, the insurer is unable to meet its obligations; or
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
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.
(12) In the case of a company incorporated or established outside Singapore, the audit required by subsection (3) need not extend beyond the business for which an insurance fund is maintained under this Act.
(13) The documents to be lodged with the Authority under this section for any accounting period of an insurer shall be accompanied by copies of any report submitted to the members of the insurer with respect to that period and (if it is not among the documents so lodged) by any statement of accounts so submitted with respect to that period.
(14) References in this Act to documents lodged with the Authority shall not be taken to include documents required by subsection (13) to accompany documents so lodged.
(15) Where any report or statement referred to in subsection (13) is in a language other than English, the copy required by that subsection shall be in English and shall be certified to be a true translation of the original by the translator.