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  • AA-5.1 General Requirements

    • AA-5.1.1

      In accordance with Articles 114 and 121 of the CBB Law, the CBB may appoint appointed experts to undertake on-site examinations or report by way of investigations on specific aspects of a licensee's business. External auditors may be called upon to be appointed experts and should be aware of their role in that capacity by referring to Section BR-3.5 for money changers and administrators or Module GR for representative office licensees.

      [The Rules and guidance in this Section were moved to Section BR-3.5 for money changers and administrators and Module GR for Representative offices in April 2012]

      Amended: April 2012
      October 2010

    • AA-5.1.2

      Effective from Oct 1 2010 - Mar 31 2012.

      The purpose of the contents of this chapter is to set out the roles and responsibilities of Appointed Experts when appointed pursuant to Article 114 or 121 of the CBB Law (see EN-7.1.1). These Articles empower the CBB to assign some of its officials or others to inspect or conduct investigations of licensees.

      October 2010

    • AA-5.1.3

      Effective from Oct 1 2010 - Mar 31 2012.

      The CBB uses its own inspectors to undertake on-site examinations of licensees as an integral part of its regular supervisory efforts. In addition, the CBB may commission reports on matters relating to the business of licensees in order to help it assess their compliance with CBB requirements. Inspections may be carried out either by the CBB's own officials, by duly qualified "Appointed Experts" appointed for the purpose by the CBB, or a combination of the two.

      October 2010

    • AA-5.1.4

      Effective from Oct 1 2010 - Mar 31 2012.

      Specialised licensees must provide all relevant information and assistance to the CBB inspectors and Appointed Experts on demand as required by Articles 111 and 114 of the CBB Law. Failure by licensees to cooperate fully with the CBB's inspectors or Appointed Experts, or to respond to their examination reports within the time limits specified, will be treated as demonstrating a material lack of cooperation with the CBB which will result in other enforcement measures being considered, as described elsewhere in Module EN. This rule is supported by Article 114(a) of the CBB Law.

      October 2010

    • AA-5.1.5

      Effective from Oct 1 2010 - Mar 31 2012.

      Article 163 of the CBB Law provides for criminal sanctions where false or misleading statements are made to the CBB or any person /Appointed Expert appointed by the CBB to conduct an inspection or investigation on the business of the licensee or the listed licensee.

      October 2010

    • AA-5.1.6

      Effective from Oct 1 2010 - Mar 31 2012.

      The CBB will not, as a matter of general policy, publicise the appointment of an Appointed Expert, although it reserves the right to do so where this would help achieve its supervisory objectives. Both the Appointed Expert and the CBB are bound to confidentiality provisions restricting the disclosure of confidential information with regards to any such information obtained in the course of the investigation.

      October 2010

    • AA-5.1.7

      Effective from Oct 1 2010 - Mar 31 2012.

      Unless the CBB otherwise permits, Appointed Experts should not be the same firm appointed as external auditor of the specialised licensee.

      October 2010

    • AA-5.1.8

      Effective from Oct 1 2010 - Mar 31 2012.

      Appointed Experts will be appointed in writing, through an appointment letter, by the CBB. In each case, the CBB will decide on the range, scope and frequency of work to be carried out by Appointed Experts.

      October 2010

    • AA-5.1.9

      Effective from Oct 1 2010 - Mar 31 2012.

      Appointed Experts will report directly to and be responsible to the CBB in this context and will specify in their report any limitations placed on them in completing their work (for example due to the relevant specialised licensees' group structure). The report produced by the Appointed Experts is the property of the CBB (but is usually shared by the CBB with the firm concerned).

      October 2010

    • AA-5.1.10

      Effective from Oct 1 2010 - Mar 31 2012.

      Compliance by Appointed Experts with the contents of this Chapter will not, of itself, constitute a breach of any other duty owed by them to a particular specialised licensee (i.e. create a conflict of interest).

      October 2010

    • AA-5.1.11

      Effective from Oct 1 2010 - Mar 31 2012.

      The CBB may appoint one or more of its officials to work on the Appointed Experts' team for a particular specialised licensee.

      October 2010

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