Whole Section

  • 5.9 Appointment of Auditors and Audit Requirements

    • 5.9.1

      A Clearing Member, except for a Bank Clearing Member, shall seek the approval of CDP prior to any appointment of new auditors.

      Amended on 1 July 20081 July 2008.

    • 5.9.1A

      A Bank Clearing Member shall inform CDP of the appointment of any new auditors within seven (7) days of such appointment.

      Added on 1 July 20081 July 2008.

    • 5.9.2 Statutory Audit Report For General Clearing Members

      Without prejudice to such audit and/or reporting requirements as may be imposed by CDP from time to time, a General Clearing Member shall furnish to CDP, within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by CDP, the relevant forms which a General Clearing Member is required to lodge in the prescribed format under Regulation 27(9) of the SFR (Financial and Margin Requirements), the annual accounts duly audited by, and the certificate of, its auditor or auditors who shall be a public accountant or a firm of public accountants approved by CDP. The certificate shall pertain to the audit conducted by such auditor or auditors in respect of the financial year aforesaid and shall be in such form prescribed by the Relevant Regulatory Authority.

      Amended on 12 October 200512 October 2005 and 1 July 20081 July 2008 and 22 April 201922 April 2019.

    • 5.9.3

      Where, in the performance of his or their duties, the General Clearing Member's auditor or auditors becomes or become aware:—

      (1) of any matter which in his or their opinion adversely affects or may adversely affect the financial position of the General Clearing Member to a material extent,
      (2) of any matter which in his or their opinion constitutes or may constitute a contravention of any provision of the SFA or this Clearing Rules, or an offence involving fraud or dishonesty,
      (3) of any irregularity that has or may have a material effect upon the accounts, including irregularities that jeopardise the moneys or other assets of any Customer of the General Clearing Member; or
      (4) that the accounting system, internal accounting control and procedures for safeguarding moneys or other assets are inadequate and the inadequacies have a material effect on the accounts,

      the auditor or auditors shall immediately report the matter to CDP.

      Amended on 1 July 20081 July 2008.

    • 5.9.4

      (1) Where a Clearing Member fails to submit the documents pursuant to Rule 5.9.2 within the specified time, there may be imposed upon that Clearing Member a fee of $200 for each day that the statements are not submitted within the prescribed time, unless an extension of time has been granted.
      (2) Requests for extension of time shall be submitted to CDP at least 3 Market Days prior to the due date.
    • 5.9.5 Audit Report For Bank Clearing Members

      Without prejudice to such audit and/or reporting requirements as may be imposed by CDP from time to time, a Bank Clearing Member shall furnish to CDP within five (5) months of the end of its financial year or within such longer period as may be permitted in writing by CDP, the annual accounts duly audited by, and the certificate of its auditor or auditors. The certificate shall pertain to the audit conducted by such auditor or auditors in respect of the financial year aforesaid and shall be in such form prescribed by the Relevant Regulatory Authority.

      Added on 1 July 20081 July 2008 and amended on 22 April 201922 April 2019.

    • 5.9.6

      Where, in the performance of his or their duties, the Bank Clearing Member's auditor or auditors becomes or become aware:—

      (1) of any matter in relation to the Bank Clearing Member's business governed by this Clearing Rules, which in his or their opinion adversely affects or may adversely affect the financial position of the Bank Clearing Member to a material extent,
      (2) of any matter which in his or their opinion constitutes or may constitute a contravention of any applicable provision of the SFA or this Clearing Rules or an offence involving fraud or dishonesty in relation to the Bank Clearing Member's business governed by this Clearing Rules,
      (3) of any irregularity in the Bank Clearing Member's business governed by this Clearing Rules, that has or may have a material effect upon the accounts, including irregularities that jeopardise the moneys or other assets of any customer of the Bank Clearing Member, or
      (4) that the accounting system, internal accounting control and procedures for safeguarding moneys or other assets, in relation to the Bank Clearing Member's business governed by this Clearing Rules, are inadequate and the inadequacies have a material effect on the accounts,

      the auditor or auditors shall immediately report the matter to CDP.

      Added on 1 July 20081 July 2008.