6.3.1. Financial statements

An Authorised Person must prepare financial statements in accordance with the International Financial Reporting Standards ("IFRS") for each financial year of the Authorised Person.

6.3.2. Approval of financial statements

The financial statements of an Authorised Person must be approved by the Directors and signed on its behalf by at least one of the Directors.

6.3.3. Accounting records and regulatory returns

An Authorised Person must keep Accounting Records which are sufficient to show and explain transactions are such as to:

• (a) be capable of disclosing the financial position of the Authorised Person on an ongoing basis;
• (b) record the financial position of the Authorised Person as at its financial year end; and
• (c) ensure that any financial statements prepared by the Authorised Person comply with the Framework Regulations and Rules.

6.3.4. Retention of and access to records

An Authorised Person must ensure that its Accounting Records are:

• (a) retained by the Authorised Person for at least six years from the date to which they relate;
• (b) at all reasonable times, open to inspection by the AFSA or the Auditor of the Authorised Person; and
• (c) if requested by the AFSA capable of reproduction, within a reasonable period not exceeding five Business Days, in hard copy and in English.

6.3.5. Financial year end

An Authorised Person must not change its financial year end without the prior consent of the AFSA.

6.3.6. Appointment and termination of Auditors

An Authorised Person must:

• (a) notify the AFSA of the appointment of an Auditor using the form prescribed in Schedule 3;
• (b) prior to the appointment of the Auditor, take reasonable steps to ensure that the Auditor has the required skills, resources and experience to audit the business of the Authorised Person for which the Auditor has been appointed;
• (c) notify the AFSA immediately if the appointment of the Auditor is or is about to be terminated, or on the resignation of its Auditor, using the form prescribed in Schedule 3;
• (d) appoint an Auditor to fill any vacancy in the office of Auditor and ensure that the replacement Auditor can take up office at the time the vacancy arises or as soon as reasonably practicable; and
• (e) comply with any request by the AFSA to replace an Auditor previously appointed by that Authorised Person.

6.3.7. Independence of the Auditor

An Authorised Person must:

• (a) take reasonable steps to ensure that the Auditor and the relevant audit staff of the Auditor are independent of and not subject to any conflict of interest with respect to the Authorised Person; and
• (b) notify the AFSA if it becomes aware, or has reason to believe, that the Auditor or the relevant audit staff of the Auditor are no longer independent of the Authorised Person, or have a conflict of interest which may affect their judgement in respect of the Authorised Person.

6.3.8. Co‐operation with Auditors

An Authorised Person must take reasonable steps to ensure that it and its Employees:

• (a) provide any information to its Auditor that its Auditor reasonably requires, or is entitled to receive as Auditor;
• (b) give the Auditor right of access at all reasonable times to relevant records and information within its possession;
• (c) allow the Auditor to make copies of any records or information referred to in (b);
• (d) do not interfere with the Auditor's ability to discharge its duties;
• (e) report to the Auditor any matter which may significantly affect the financial position of the Authorised Person; and
• (f) provide such other assistance as the Auditor may reasonably request it to provide.

6.3.9. Audit reports

An Authorised Person must:

• (a) require, in writing, its Auditor to:
• (i) conduct an audit of and produce a report on the Authorised Person’s financial statements in accordance with the International Standards on Auditing; and
• (ii) such other reports as the AFSA may require; and
• (b) submit any reports so produced to the AFSA within four months of the Authorised Person’s year end.