Regulatory Alerts2017-08-25 | 29498Added · Updated
External Auditor’s Report on the Annual Statutory Returns
The Central Bank of Trinidad and Tobago reminds registered insurance companies and their external auditors that section 57(1)(a) to (e) of the Insurance Act requires auditors to express an opinion on specific areas of the revenue account and balance sheet. The directive mandates that long-term insurers and motor vehicle insurers maintain their Statutory Fund in trust with assets equal to their respective liability and contingency reserves. External auditors are required to ensure that the D2 Schedule of the Annual Statutory Return is reconciled with the trustee's listing before issuing their opinion on the accounts.
CENTRAL BANK OF TRINIDAD & TOBAGO Eric Williams Plaza, Independence Square, Port-of-Spain, Trinidad, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 625-4835; 4921; 5028; Fax: (868) 627-4696 E-Mail Address: info@central-bank.org.tt Website: www.central-bank.org.tt
May 10, 2011
TO ALL INSURANCE COMPANIES AND THE INSTITUTE OF CHARTERED ACCOUNTANTS OF TRINIDAD AND TOBAGO
REF: CB-OIFI-1002/2011
EXTERNAL AUDITOR'S REPORT ON THE ANNUAL STATUTORY RETURNS
The Central Bank of Trinidad and Tobago (the Central Bank) wishes to remind all registered insurance companies (insurers) and their external auditors that section 57(1)( a) to (e) of the Insurance Act, Chapter 84:01 (the Act) specifies all the areas where the external auditor is required to express an opinion on the revenue account and balance sheet required under section 56(1).
In addition, the Central Bank advises that in accordance with section 37 of the Act, insurers are required to maintain their Statutory Fund by placing in trust:-
i. in the case of a long-term insurer, assets equal to its liability and contingency reserves with respect to Trinidad and Tobago policyholders as established by the balance sheet of the insurer as at its last financial year; and
ii. in the case of an insurer carrying on motor vehicle insurance business, assets equal to the liability and reserves less the amount deposited on account of such business with respect to Trinidad and Tobago policyholders as established by the revenue account of the company as at the end of its last financial year.
Insurers are also reminded that the assets referred to in (i.) and (ii.) above are required to be listed on the D2 Schedule of the Annual Statutory Return. The Central Bank therefore requests each external auditor to ensure that the insurer reconciles its D2 Schedule with its trustee's listing before stating his opinion as to whether the accounts were prepared in accordance with the Act.
Kindly acknowledge receipt of this letter by signing and returning the attached copy.
Yours sincerely
[Signature]
Carl Hiralal INSPECTOR OF FINANCIAL INSTITUTIONS
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