COB 12.4 Financial Statements, Reports and Audit Requirements COB 12.4 Financial Statements, Reports and Audit Requirements
COB 12.4.1The Operator of a Scheme must ensure that:(a) financial statements relating to the Scheme are prepared in respect of each financial year of the Scheme; and(b) the financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) or any other standard approved by the DFSA.
Annual and half year Reports
COB 12.4.2The Operator of a Scheme must:(a) prepare a financial report relating to the Scheme in respect of each(i) financial year of the Scheme; and(ii) half year of the Scheme;(b) prepare and maintain all financial statements in accordance with IFRS or any other reporting standard approved by the DFSA;(c) keep accounting records in sufficient detail to enable the financial statements of the Scheme to be prepared for the relevant financial year and half year that shows the financial position of the Scheme, including:(i) records of contributions received in respect of Members of the Scheme;(ii) investment earnings of the underlying investment options in which Member contributions are invested;(iii) fees and charges of the Scheme, and any other outgoings, showing separately:(A) the Operator’s overall fees and charges, with a breakdown of the amounts paid to the Administrator, Eligible Custodian and other Third Party Service Providers and, the fees and charges of the Professional Adviser; and(B) the fees and charges of the investment managers whose products are offered on the Investment Platform;(iv) an annual illustration of the overall impact of fees and charges of the Scheme on Member contributions;(v) transactions in respect of Scheme property; and(vi) any other matters as specified by the DFSA;(d) retain the accounting records for at least six years from the date to which the record relates; and(e) have the accounting records open for inspection by the Registered Auditor of the Scheme and the DFSA.
Annual Statements and Exit Statements
COB 12.4.3The Operator of a Scheme must ensure that the Administrator prepares and provides to each Member an annual statement for each financial year, in respect of the Member’s account, setting out:(a) the mandatory contributions received for or on behalf of the Member;(b) the voluntary contributions, if any, received from the Member;(c) the value of the investments attributed to the Member’s account, whether chosen by the Member or applying by default;(d) the earnings attributed to the Member’s account in respect of the investments referred to in (c);(e) the fees and charges deducted from the Member’s account; and(f) any other information required by the DFSA.
The Operator of the Scheme must ensure that the Administrator prepares and provides upon the exit of a Member an exit statement setting out the full details of the benefit payment, including any permitted deductions made from the benefit payment.
COB 12.4.5The Operator of a Scheme must ensure that:(a) an Auditor is appointed for the Scheme;(b) the Auditor conducts an audit of the financial statements of the Scheme in accordance with the requirements of the relevant standards published by the IAASB; and(c) the Auditor produces an Auditor’s Report on the audited financial statements of the Scheme.