Securities and Exchange Commission of Sri Lanka Act 2021 · As enacted · Part III · Issue of Securities
108. Duty of an auditor of a market intermediary
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
If an auditor of a market intermediary, in the ordinary course of the performance of his duties as an auditor, is of the opinion that there has been a breach of or non compliance with any provision of this Act, regulations, rules or directives made thereunder or a breach of any rule of a market institution or any matter which may adversely affect the financial position of the market intermediary to a material extent, the auditor shall immediately submit a written report to the board of directors on the matter with a copy to–
in the case of a contravention or non compliance with any provision of this Act, regulation, rule or directive made thereunder or any offence involving fraud or dishonesty, to the Commission;
in the case of a breach or non compliance of any of the rules of a market institution, to the relevant market institution and to the Commission; or
in any other case, which adversely affects the financial position of the market intermediary to a material extent, to the relevant market institution and to the Commission.
No auditor shall be liable to be sued in any court for any report submitted by the auditor in good faith and in the performance of any duty imposed on the auditor under this section.
The Commission may at any time during or after an audit, require an auditor of a market intermediary to–
submit such additional information in relation to his audit as the Commission may specify;
enlarge or extend the scope of his audit of the business and affairs of the market intermediary in such manner or to such extent as the Commission may require;
carry out any specific examination or establish any procedure in any particular case; or
submit a report or an interim report as the case may be on any matter referred to in paragraphs (a) to (c), and the Commission may specify the time within which such requirements shall be complied with by the auditor.
The auditor shall comply with any requirement of the Commission under subsection (3) and the market intermediary shall remunerate the auditor at the rates specified by the Commission in respect of the discharge by him of all additional duties under this section.
The market intermediary shall provide such information and access to such information as the auditor shall require in respect of the discharge by him of all of the additional duties under this section.
CHAPTER 3
PROTECTION OF CLIENTS’ ASSETS
Part IV
Trade In Unlisted Securities
Part V
Market Misconduct
Part VI
Finance
Part VII