Duties of auditors

(1) An auditor appointed under section 49 shall– (a) make a full review of the records and accounts of an insurer or insurance intermediary in accordance with international reporting standards or generally accepted accounting principles and requirements; (b) prepare and submit to the directors and shareholders of the insurer or insurance intermediary, or the principal representative a report on the financial statements and state in that report whether, in the auditor’s opinion, such financial statements– (i) are full and fair and properly drawn up; (ii) exhibit a true and correct statement of the affairs of the insurer or insurance in accordance with international reporting standards or generally accepted accounting principles, and requirements; and 88 (iii) comply with prescribed requirements with regard to form and content; (c) report, in any case in which the auditor has called for information or explanation from the directors, officers or agents of the insurer or insurance intermediary, pursuant to section 49A, whether a satisfactory response was (d) make a full review and submit, to the directors or principal representative of the insurer or insurance intermediary, a full and fair report of– (i) the internal structure, technology, reserving systems, reinsurance arrangements, capital adequacy and procedures for financial reporting insurer or insurance intermediary; and (ii) the procedures of the insurer or insurance intermediary for compliance with the requirements of this Act and the regulations, guidelines or instructions made under this Act. (2) If an insurer is an overseas company, the reviews and reports required under sub-section (1) shall be in respect of the branch or branches of the insurer in Belize and the conduct of its business in Belize. (3) For the purpose of performing the duties under sub- section (1) or (2), the auditor for an insurer or insurance intermediary shall request from the insurer and review, any instruction, recommendation, requirement, orders or directives issued and other action taken by the Supervisor under this Act in respect of that insurer or insurance. 89 (4) If the Supervisor, on reasonable grounds, is not satisfied with the annual report of an auditor appointed by an insurer, he may appoint another auditor to make an independent audit report, and in every such case, the Supervisor shall determine the reasonable remuneration to be paid by the insurer or insurance intermediary to that auditor appointed under this sub- (5) If, during the course of any review required under this section, an auditor learns of any fact, transaction, action or course of conduct concerning an insurer or insurance intermediary which– (a) may pose a substantial risk to the financial condition of the insurer or insurance (b) may result in a significant loss to the insurer or (c) may seriously prejudice the interests of the insurer’s policyholders or customers; (d) is a violation of any provision of this Act or any regulations, guideline or instruction made hereunder; (e) indicates involvement in fraudulent or criminal activity; or (f) indicates that the insurer is or may soon become insolvent, within the meaning of the auditor shall, as soon as possible, report such matters to the directors of the insurer, insurance intermediary or the principal representative, and the Supervisor. 90 (6) An auditor who fails to report his findings to the Supervisor as required under sub-section (5), commits an offence and is liable on summary conviction to a fine of ten thousand dollars.