More scrutiny in handling financials

ANYONE preparing reports containing financial information for organisations like banks, unit trust schemes or corporations listed on the stock exchange will be scrutinised by the Securities Commissions Audit Oversight Board.

This was among the new provisions in the amendments to the Securities Commission Malaysia Act, passed in the Dewan Rakyat yesterday.

The organisations referred to are public interest entities and schedule funds, which include public-listed companies, licensed banks, insurers, takaful operators and approved unit trust and private retirement schemes.

Changes to the composition of the board to supervise the audit industry were also included in the amendments. No member of the board shall be an approved company auditor under the Companies Act or employed by a firm providing services to the above entities or their affiliates.

Day-to-day administration of the board will also be the responsibility of the executive officer.

A subsection in the amendments also requires a registered auditor or one recognised by the board to pay a prescribed fee on a yearly basis.

The new subsection 4(b) also provides for the Securities Commission to impose a late payment charge if the auditor fails to pay the annual fee within a stipulated time. Failure to pay the fee or charges imposed may see the auditor’s registration revoked and his or her recognition withdrawn or suspended.

Also passed in the Dewan yesterday was the Armed Forces Fund Bill, which provides annuities to personnel with less than 20 years of service.