Unit Trusts Act, 1972

Audit of accounts of unit trust schemes.

16.—(1) The accounts of a registered unit trust scheme shall be audited annually by a person appointed as auditor of the scheme by the manager under the scheme with the consent of the trustee under the scheme and a copy of the auditor's report on the accounts and of such of the accounts certified by the auditor as may stand specified for the time being under section 10 (2) (b) of this Act shall be sent by the manager to the Minister, the registrar and each holder of units created in pursuance of the scheme within such time after the end of the period to which the accounts relate as the Minister may from time to time specify.

(2) A person shall not be qualified for appointment as auditor of a registered unit trust scheme unless—

(a) he is a member of a body of accountants for the time being recognised for the purposes of section 162 (1) (a) of the Companies Act, 1963 , by the Minister; or

(b) he is for the time being authorised by the Minister under section 162 of that Act to be appointed auditor of a company.

(3) If an auditor is convicted of a criminal offence arising out of or connected with the performance of his duties or his conduct as an auditor, he shall not be qualified for appointment as auditor of a unit trust scheme without the permission of the High Court.

(4) None of the following persons shall be qualified for appointment as auditor of a registered unit trust scheme—

(a) an officer or servant of the manager or the trustee under the scheme;

(b) a person who is a partner of or in the employment of an officer or servant of the manager or the trustee under the scheme;

(c) a body corporate.

References in this subsection to an officer or servant shall be construed as not including references to an auditor.

(5) A person shall also not be qualified for appointment as auditor of a registered unit trust scheme if he is, by virtue of section 162 (3) of the Companies Act, 1963 , disqualified for appointment as auditor of a body corporate which is a subsidiary or holding company of the manager or the trustee under the scheme or a subsidiary of that person's holding company or would be so disqualified if the body corporate were a company.

(6) Any person who acts as auditor of a registered unit trust scheme when disqualified under this section shall be guilty of an offence and shall be liable on summary conviction thereof to a fine not exceeding £100.

(7) An auditor of a registered unit trust scheme shall have a right of access at all reasonable times to the books and accounts and vouchers of the scheme, and shall be entitled to require from the officers or past officers of the manager or the trustee under the scheme such information and explanations as he thinks necessary for the performance of the duties of the auditor.

(8) An auditor of a registered unit trust scheme shall be entitled to attend any general meeting of the manager or the trustee under the scheme at which the business of the scheme is to be or may be discussed and to receive all notices of and other communications relating to any general meeting which any member of the body corporate that is the manager or the trustee is entitled to receive and to be heard at any general meeting which he attends on any part of the business of the meeting relating to the scheme which concerns him as auditor.