(1) Investment firms and market operators of regulated markets shall ensure that their external auditors report at least annually to the Bank on the adequacy of the firm's arrangements under -
(a) Regulation 33(1) (h) and (i), and
(2) The auditor of an investment firm or of the market operator of a regulated market shall report promptly to the Bank any fact or decision concerning the firm or market operator of which the auditor has become aware while carrying out an audit of the investment firm, of the market operator or of an undertaking having close links with the firm or market operator, which fact or decision -
(a) constitutes or indicates a material breach of these Regulations or of any condition, requirement, code, guideline, notice or direction under these Regulations,
(b) affects or may affect the continuous functioning of the firm, market operator or undertaking, or
(c) leads to the auditor's refusal to certify the accounts or to the expression