Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 125A

             (1)  APRA may, if satisfied there is a ground under subsection (2), give a written direction to a body corporate that is a life company or a registered NOHC to end the appointment of a person as:

                     (a)  an auditor of the body; or

                     (b)  the appointed actuary of the body, if it is a life company.

             (2)  The grounds for giving a direction to end a person's appointment are:

                     (a)  either:

                              (i)  for a person who is a disqualified person only because he or she was disqualified under section 245A--the person is disqualified from being or acting as an auditor or actuary of the body; or

                             (ii)  otherwise--the person is a disqualified person; or

                     (b)  the person is not a fit and proper person to hold the appointment; or

                     (c)  the person has failed to perform adequately and properly the duties or functions of the appointment under this Act, the regulations or the Financial Sector (Collection of Data) Act 2001 .

             (3)  Before directing a body corporate to end a person's appointment, APRA must:

                     (a)  give written notice to:

                              (i)  the body corporate; and

                             (ii)  the person; and

                     (b)  give the body corporate and the person a reasonable opportunity to make submissions on the matter.

             (4)  The notice must include a statement that any submissions in response to the notice may be discussed by APRA with other persons as mentioned in paragraph (5)(b).

             (5)  If a submission is made in response to the notice, APRA:

                     (a)  must have regard to the submission; and

                     (b)  may discuss any matter contained in the submission with any persons APRA considers appropriate for the purpose of assessing the truth of the matter.

             (6)  A direction to end a person's appointment takes effect on the day specified in the direction, which must be at least 7 days after the direction is made.

             (7)  If APRA directs a body corporate to end a person's appointment, APRA must give the body corporate and the person a copy of the direction.

             (8)  A direction to end a person's appointment is not a legislative instrument.

             (9)  A body corporate commits an offence if:

                     (a)  the body corporate does or fails to do an act; and

                     (b)  by doing or failing to do the act, the body corporate fails to comply with a direction under this section.

Penalty:  60 penalty units.

           (10)  Subsection (9) is an offence of strict liability.

Note:          For strict liability , see section 6.1 of the Criminal Code .