Trusts (Regulation of Trust Business) (Reporting Accountants) (Facts and Matters of Material Significance) Regulations 2006

Summary

These Regulations, made under the Trusts (Regulation of Trust Business) Act 2001, define what counts as a 'fact or matter of material significance' that a reporting accountant (an auditor or accountant of a licensed trust business) must notify to the Bermuda Monetary Authority under sections 36(2) and 45(2A) of the Act.

• A material misstatement in financial statements caused by fraud, error or illegal acts
• Substantial doubt about the undertaking's ability to continue as a going concern for one year from the balance sheet date
• 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 Regulations
• Unresolved disagreements with management over accounting principles that could lead to 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 facts or matters, they are deemed of material significance for the Authority's functions under the Act, triggering the accountant's statutory duty to give notice to the Authority. The Regulations came into operation on 15 July 2006.

Key obligations

• A reporting accountant who identifies any of the specified facts or matters (material misstatement, going concern doubt, prior misstatements, material weakness in internal control, unresolved accounting disagreements, deliberate misleading of the Authority, or evidence of fraud by senior executives) must give notice to the Bermuda Monetary Authority under sections 36(2) or 45(2A) of the Trusts (Regulation of Trust Business) Act 2001.

Applies to

reporting accountants, auditors, licensed trust businesses

Deadlines

• 15th day of July, 2006: Commencement date of these Regulations

Related documents

• This document commences Trusts (Regulation of Trust Business) Act 2001
• This document is made under Trusts (Regulation of Trust Business) Act 2001