Removal and resignation of auditors

(1) A local licensee or financial holding company shall immediately give notice to the Central Bank if the licensee or (a) proposes to give special notice to its shareholders of an ordinary resolution removing an auditor before the expiration of his engagement; or (b) gives notice to its shareholders of an ordinary resolution replacing an auditor at the expiration of his engagement with a different auditor, or if a person ceases to be an auditor 138 of the licensee otherwise than in consequence of such a resolution. (2) A foreign licensee shall immediately give notice to the Central Bank if the foreign licensee– (a) removes an auditor before the expiration of his engagement; or (b) replaces an auditor at the expiration of his engagement with a different auditor, or if a person otherwise ceases to be an auditor of the foreign licensee. (3) An auditor of a licensee or financial holding company appointed under section 75 shall immediately give written notice to the Central Bank if he– (a) resigns before the expiration of his engagement; (b) does not seek to be re-appointed; (c) is terminated by the licensee or financial holding company; or (d) decides to include in his report on the licensee’s any qualification that indicates that the licensee may be carrying on its business in a manner detrimental to the interests of its depositors or of its creditors, or may have insufficient assets to satisfy its liabilities as they mature or become due, or may be contravening any of the provisions of this Act or the regulations and practice directions made hereunder. 139 (4) A licensee, financial holding company or auditor who fails to comply with this section shall pay to the Central Bank a fine not exceeding ten thousand dollars.