Insurance Act, 2017 (Act No. 18 of 2017)Chapter 5 : GovernancePart 1 : Insurers and insurance groups32. Auditor |
| (1) |
| (a) | An insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) and a controlling company must at all times have an auditor appointed by the insurer and the controlling company, respectively. |
| (b) | Sections 90 to 93, inclusive, of the Companies Act apply to an insurer referred to in paragraph (a) and a controlling company. |
| (2) | The representative of a branch of a foreign reinsurer and Lloyd’s must appoint an auditor to audit the information and statements identified in section 47. |
| (3) |
| (a) | If an insurer, a controlling company or a representative of a branch of a foreign reinsurer or Lloyd’s for any reason fails to appoint an auditor under subsection (1) or (2), the Prudential Authority may— |
| (i) | despite the Companies Act, appoint an auditor for that insurer or controlling company; |
| (ii) | appoint an auditor for the purpose set out in subsection (2). |
| (b) | A person or firm appointed under paragraph (a) is deemed to have been appointed by that insurer, controlling company or representative of a branch of a foreign reinsurer or Lloyd’s in accordance with this Act. |
| (4) | The auditor must, in addition to the requirements of the Financial Sector Regulation Act, without delay, submit a detailed written report to the Prudential Authority, and also to the board of directors in the case of an insurer referred to in subsection (1) and a controlling company, on any matter of which the auditor becomes aware in the performance of the auditor’s functions and duties referred to in subsection (6), and which, in the opinion of the auditor— |
| (a) | in respect of the business of the insurer or insurance group, may be contrary to the governance framework requirements of this Act, or amounts to inadequate maintenance of internal controls; |
| (b) | in respect of a significant owner of the insurer or controlling company, constitutes a contravention of any section of this Act. |
| (5) | In the case of a branch of a foreign reinsurer or Lloyd’s, the auditor must, in addition to subsection (4), without delay, submit a detailed written report to the Prudential Authority on any matter of which the auditor becomes aware in the performance of the auditor’s functions and duties referred to in subsection (6), and which, in the opinion of the auditor, is likely to prejudice the ability of the branch of a foreign reinsurer or Lloyd’s to hold the required security in the trust. |
| (6) | The auditor of an insurer or a controlling company must— |
| (a) | audit the financial soundness of an insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) or controlling company in the manner prescribed; |
| (b) | audit the security held in a trust referred to in section 41 in the manner prescribed; |
| (c) | perform the duties and functions assigned to the auditor of an insurer or a controlling company under this Act, the Companies Act and the Auditing Profession Act; and |
| (d) | perform any other duties or functions prescribed. |