(1) If an auditor of an insurer -

(a) has reason to believe that there exist circumstances which are likely to affect materially the insurer's ability to fulfill its obligations to policyholders or meet any of its material financial requirements under the Insurance Acts, or

(b) has reason to believe that there are material defects in the financial systems and controls or accounting records of the insurer which are likely to have that effect, or

(c) proposes to qualify any certificate which he is to provide in relation to financial statements or returns of the insurer under the Companies Acts or the Insurance Acts, or

(d) decides to resign or not seek re-election as auditor, or

(e) becomes aware of any facts or decisions which are likely to affect materially the insurer's ability to fulfil its obligations to policyholders or meet any of its material financial requirements under the Insurance Acts in the course of conducting an audit in an undertaking in a control relationship with the insurer, as defined in Article 1(1) and (2) of Directive 83/349/EC [O.J. No. L 193 18.07.1983 as last amended by Directive 90/605/EEC (O.J. No. L317 16.11.1990) ].

he shall report the matter to the Bank in writing without delay.