Statement as to disclosure of information to auditorsU.K.
11.—(1) The managing agent's report must contain a statement to the effect that, in the case of each of the persons who are directors, or, where the managing agent is a partnership, of each of the persons who are partners, of the managing agent at the time the report is approved—
(a)so far as the director or partner is aware, there is no relevant audit information of which the syndicate's auditor is unaware; and
(b)the director or partner has taken all the steps that he or she ought to have taken as a director or partner to become aware of any relevant audit information and to establish that the syndicate's auditor is aware of that information.
(2) In sub-paragraph (1) “relevant audit information” means information needed by the syndicate's auditor in connection with preparing the auditor's report.
(3) For the purposes of sub-paragraph (1), a director or partner of the managing agent is regarded as having taken all the steps that he or she ought to have taken as a director or partner in order to do the things mentioned in sub-paragraph (1)(b) if the director or partner has—
(a)made such enquiries of fellow directors or partners and of the syndicate's auditors for that purpose; and
(b)taken such other steps (if any) for that purpose,
as were required by his or her duty as a director or partner of the managing agent of the syndicate to exercise due care, skill and diligence.
(4) Where the managing agent's report containing the statement required by this paragraph is approved but the statement is false, every director or partner of the managing agent who—
(a)knew that the statement was false, or was reckless as to whether it was false; and
(b)failed to take reasonable steps to prevent the report from being approved,
commits an offence.
(5) A person guilty of an offence under sub-paragraph (4) is liable—
(a)on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine, or both;
(b)on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum, or both.