(1) Where an auditor, in the performance of the duties of auditor of a futures broker, becomes aware of a prescribed matter, the auditor must, within 7 days after becoming aware of that matter, lodge a written report on the matter and send a copy of the report to:

(a)

the broker; and

(b)

each futures exchange of which the broker is a member and to each clearing house (if any) for that futures exchange; and

(c)

each futures association of which the broker is a member, unless the futures association is also a futures exchange of which the broker is a member.

(2) In this section, prescribed matter means a matter that, in the opinion of the auditor:

(a)

has adversely affected, is adversely affecting, or may adversely affect, the ability of the futures broker to meet the broker's obligations as a broker; or

(b)

constitutes or may constitute a contravention of section 1209, 1213 or 1214; or

(c)

constitutes or may constitute a contravention of a condition of a licence held by the futures broker.