2A.6 Auditors and Accounts

 2A.6.1      A Member shall appoint an auditor to audit its accounts and where, for any reason, the auditor ceases to act for such Member, the Member shall, as soon as practicable thereafter, appoint another auditor.

 

2A.6.2      A Member shall, in respect of each financial year —

 

(i)     Annual Returns

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 Exchange within 5 months, or such extension thereof permitted by the Exchange, after the end of the financial year, together with an auditor’s report on the account and balance-sheet; and

 

(ii)    Quarterly Returns

c.   prepare a true and fair management report showing the profit and loss account and a balance-sheet made up to the last day of March, June, September and December; and

 d.   lodge that management report with the Exchange within 1 month, or such extension thereof permitted by the Exchange, after the end of each calendar quarter mentioned above.

 

2A.6.3      Where an application under Rule 2A.6.2(i) for an extension of the period of 5 months has been made by a Member to the Exchange and the Exchange is satisfied that there is any special reason for requiring the extension, the Exchange may extend that period by not more than 4 months, subject to such conditions or restrictions as the Exchange may think fit to impose.  Where an application under Rule 2A.6.2(ii) for an extension of the period of 1 month has been made by a Member to the Exchange and the Exchange is satisfied that there is any special reason for requiring the extension, the Exchange may extend that period by not more than 1 month, subject to such conditions or restrictions as the Exchange may think fit to impose.

 

2A.6.4      Notwithstanding any other provision of this Rule book, the Exchange may, if it is not satisfied with the performance of duties by an auditor appointed by a Member —

a.   at any time direct the Member to remove the auditor; and

b.   direct the Member, as soon as practicable thereafter, to appoint another auditor,

 and the Member shall comply with such direction.

 

2A.6.5      Where, in the performance of his duties as an auditor for a Member of the Exchange, an auditor becomes aware of —

a.   any matter which, in his opinion, adversely affects or may adversely affect the financial position of the Member to a material extent;

b.   any matter which, in his opinion, constitutes or may constitute a contravention of any provision of this Rule book or an offence involving fraud or dishonesty; or

c.   any irregularity that has or may have a material effect upon the accounts, including any irregularity that may affect or jeopardise the moneys or other assets of any client of the Member,

 the auditor shall immediately thereafter send a report in writing of the matter or irregularity to the Exchange.

 

2A.6.6      Where —

a.   a Member fails to lodge an auditor’s report and/or management report under Rule 2A.6.2; or

b.   the Exchange receives a report under Rule 2A.6.5,

 the Exchange may appoint in writing an auditor to examine and audit, either generally or in relation to any particular matter, the books of the Member.

 

2A.6.7      Where the Exchange is of the opinion that the whole or any part of the costs and expenses of an auditor appointed by the Exchange under Rule 2A.6.6 should be borne by the Member, the Exchange may, in writing, direct the Member 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 required by the Exchange.

 

2A.6.8      An auditor appointed under Rule 2A.6.6 shall, on the conclusion of the examination and audit, submit a report to the Exchange.

 

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