Cap. 403 Art. 24Obligations of auditors and actuaries to the competent authority.

(1) An auditor or an actuary of an authorised insurance or reinsurance undertaking or of a branch in Malta of a third country insurance or reinsurance undertaking shall have the duty to report immediately to the competent authority any fact or decision concerning that undertaking of which he becomes aware of in his capacity as auditor or actuary of any such authorised insurance or reinsurance undertaking or of any such branch which relates to any matter which may be prescribed or is likely to bring about the following:

(a) a serious qualification, or refusal, of the auditor’s report on the accounts of the undertaking or the branch; or

(b) a grave impairment of the undertaking’s ability to continue as a going concern; or

(c) a material breach of the provisions of this Act, regulations or any Insurance Rules which lay down the conditions governing authorisation or which specifically govern the carrying on of business of insurance by an authorised undertaking or branch; or

(d) non-compliance with the Solvency Capital Requirement; or

(e) non-compliance with the Minimum Capital Requirement.

(2) The auditor or actuary, as the case may be, shall likewise have a duty to report to the competent authority any facts or decisions of which he becomes aware of in the course of carrying out his duties which relate to or have a serious adverse effect upon the insured, the policyholder or any other interested person relating to the undertaking or the branch in Malta of a third country insurance or reinsurance undertaking of which he becomes aware of in his capacity as auditor or actuary to an undertaking having close links with an authorised insurance or reinsurance undertaking.

(3) Without prejudice to any provision contained in this Act, the competent authority may request the auditor or the actuary, as the case may be, to provide it with such information and documentation relating to any fact or decision as specified in sub-articles (1) or (2) concerning the authorised insurance or reinsurance undertaking or branch in Malta of a third country insurance or reinsurance undertaking.