Commonwealth Consolidated Acts

INSURANCE ACT 1973 - SECT 49R

             (1)  APRA may, if satisfied there is a ground under subsection (3), give a written direction to a body corporate that is a general insurer to end the appointment of a person as:

                     (a)  an auditor of the general insurer; or

                     (b)  the actuary of the general insurer.

             (2)  APRA may, if satisfied there is a ground under subsection (3), give a written direction to a body corporate that is an authorised NOHC to end the appointment of a person as:

                     (a)  the auditor of the authorised NOHC; or

                     (b)  the actuary of the authorised NOHC.

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

                     (a)  if the person is an auditor or the actuary of a general insurer--the person is disqualified from holding such an appointment under section 44; or

                     (b)  the person does not meet one or more of the criteria for fitness and propriety set out in the prudential standards.

             (4)  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.

             (5)  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 (6)(b).

             (6)  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.

             (7)  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.

             (8)  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.

             (9)  The power of a body corporate to comply with a direction to end a person's appointment may be exercised on behalf of the body corporate:

                     (a)  by the Chair of the board of directors of the body corporate signing a written notice; or

                     (b)  by a majority of the directors of the body corporate (excluding any director who is the subject of the direction) jointly signing a written notice.

           (10)  Subsection (9) does not by implication limit any other powers of a body corporate to end a person's appointment.

           (11)  Part VI applies to a decision by APRA to give a direction under this section on the ground referred to in paragraph (3)(b).

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

           (13)  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.

           (14)  Strict liability applies to subsection (13).

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