Investment Business (Recognised Bodies) (Reporting Accountants) (Facts and Matters of Material Significance) Regulations 2024

Summary

These Regulations, made under the Bermuda Investment Business Act 2003, define what counts as a fact or matter of material significance that a reporting accountant (an auditor or accountant with statutory duties under sections 73D(3) and 75A(2) of the Act) must notify to the Bermuda Monetary Authority in relation to a recognised body. They came into force on 29 July 2024.

• A material misstatement in the financial statements resulting from fraud, error or illegal acts, or their consequences
• Substantial doubt about the recognised body's ability to continue as a going concern for one year from the balance sheet date
• Adjustments indicating that prior year audited or current year unaudited interim financial statements issued to shareholders were materially misstated
• A material weakness in internal control over financial reporting (as defined in the Regulations)
• Unresolved disagreements with management over application of GAAP that could reasonably lead to future material misstatements
• Evidence of deliberate attempts by a chief executive or senior executive to mislead the Authority with false or misleading information
• Evidence of fraud or attempted fraud by a chief executive or senior executive, or concerns seriously damaging confidence in senior management integrity

The Regulations do not themselves impose new duties on recognised bodies beyond clarifying the scope of matters their reporting accountants must report to the Authority.

Key obligations

• A reporting accountant who identifies any of the specified facts or matters (material misstatement, going concern doubt, prior-period misstatement adjustments, material internal control weakness, unresolved GAAP disagreements with management, deliberate misleading of the Authority, or fraud/attempted fraud by senior executives) must give notice to the Bermuda Monetary Authority under sections 73D(3) and 75A(2) of the Investment Business Act 2003.

Applies to

recognised bodies, reporting accountants (auditors or accountants)

Deadlines

• 29 July 2024: Commencement date of the Regulations

Related documents

• This document is made under Investment Business Act 2003