Investment Business (Reporting Accountants) (Facts and Matters of Material Significance) Regulations 2006

Summary

This regulation, made under the Investment Business Act 2003, defines what counts as a 'fact or matter of material significance' that a reporting accountant (an auditor or accountant of a licensed investment provider) must notify to the Bermuda Monetary Authority under sections 42(2A) and 45(2) of the Act. It does not create the notification duty itself but specifies the triggering circumstances that make that duty apply.

• A material misstatement in financial statements resulting from fraud, error or illegal acts, or their consequences
• Substantial doubt about the investment provider's ability to continue as a going concern for the following year
• Adjustments indicating prior year audited or current year unaudited interim financial statements were materially misstated
• A material weakness in internal control (as defined in the regulation)
• Unresolved disagreements with management over accounting principles likely to cause future material misstatements
• Evidence that a chief executive or senior executive deliberately misled the Authority with false or misleading information
• Evidence of fraud or attempted fraud by a chief executive or senior executive, or serious concerns damaging confidence in senior management's integrity

Where a reporting accountant identifies any of these circumstances in relation to an investment provider, the matter is deemed material to the Authority's functions under the Act, triggering the accountant's existing statutory duty to notify the Authority.

Key obligations

• A reporting accountant (auditor or accountant) who identifies any of the listed facts or matters in relation to an investment provider must give notice to the Authority under section 42(2A) or 45(2) of the Investment Business Act 2003, as those facts and matters are deemed of material significance to the Authority's functions.

Applies to

reporting accountants (auditors and accountants of licensed investment providers), investment providers licensed under the Investment Business Act 2003

Deadlines

• 15th day of July, 2006: Date on which these Regulations come into operation

Related documents

• This document commences Investment Business Act 2003
• This document is made under Investment Business Act 2003