Malaysia legislation

Section 164

of LABUAN FINANCIAL SERVICES AND SECURITIES ACT 2010

Section 164

Financial statements of the self-regulatory organization

(2)

The financial statements shall be audited by an auditor.

(3)

Where, in the course of his audit, the auditor of a self-regulatory organization has reason to believe that—

(a)

there has been a material adverse change in the risks inherent in the business of a self-regulatory organization with the potential to jeopardize the ability of the self-regulatory organization to continue as a going concern;

(b)

the self-regulatory organization may be in contravention of this Act, any regulations made under this Act, any guidelines issued by the Authority or any directions issued by the Authority;

(c)

a financial crime has been, is being or is likely to be committed; or

(d)

serious irregularities have occurred, he shall forthwith report in writing the matter to the Authority.

(4)

Any report made under subsection (3) shall not constitute a breach of the duties of the auditor.

Powers of Authority with respect to self-regulatory organizations