(1) If an auditor in the course of carrying out an audit of the accounts of an international public mutual fund licensee becomes aware or has reason to believe that the international public mutual fund licensee or administrator or manager is—
(a) or is likely to become unable to meet its obligations as they fall due;
(b) carrying on, or attempting to carry on business or is winding up its business voluntarily in a manner that is prejudicial to its investors or creditors; or
(c) carrying on or attempting to carry on business without keeping any or sufficient accounting records to allow its accounts to be properly audited,
the auditor shall immediately give the Director written notice of the auditor's knowledge or belief giving the auditors reason for that knowledge or belief.
(2) An auditor who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding one year or to both.
(3) If an auditor in the course of carrying out an audit of the accounts of an administrator or manager becomes aware of or has reason to believe the administrator or manager is—
(a) or is likely to become unable to meet the administrator's obligations as they fall due;
(b) carrying on or attempting to carry on business or winding up its international public mutual fund administration or international public mutual fund management services in a manner that is prejudicial to investors in any licensee for which it is providing international public mutual fund administration services or international public mutual fund management services to its creditors or the creditors of any such international public mutual fund licensee; or
the auditor shall immediately give the Director written notice of the auditor's knowledge or belief giving the auditor's reason for that knowledge or belief.
(4) An auditor who contravenes subsection (3) commits an offence and is liable on conviction to a fine not exceeding $20,000 or to both.
(5) A reference in this section to an auditor carrying out an audit of the accounts of an international public mutual fund licensee or an administrator or manager includes an auditor who was engaged to carry out such an audit or who was in the course of carrying out such an audit or whose contract to carry out or complete the audit was otherwise terminated.