54DFidelity certificate

54D Fidelity certificate (1) A fidelity certificate is a certificate in the approved form, issued under an approved scheme, relating to the prescribed residential building work specified in the certificate. (2) A fidelity certificate relates to financial loss incurred in relation to the specified prescribed residential building work because: (a) a residential builder has failed to complete the work or has contravened a consumer guarantee; and (b) any of the following events has occurred: (i) the builder has died, disappeared or become bankrupt or insolvent; (ii) the builder's registration has ceased for a reason specified by regulation. 54DA Application for approval of fidelity fund scheme (1) The trustees of a fidelity fund scheme may apply to the Minister for approval of the scheme to provide fidelity certificates.

Building Act 1993 63 (2) The application must: (a) be signed by all the trustees of the fidelity fund scheme; and (b) be accompanied by a copy of the trust deed for the scheme, certified as prescribed by regulation; and (c) include all the information required to satisfy the Minister that the scheme complies with the approval criteria. (3) The approval criteria for a fidelity fund scheme are the requirements, prescribed by regulation, with which the scheme must comply to be an approved scheme. (4) The approval criteria must include requirements for the following: (a) the management of the fidelity fund scheme in accordance with the scheme's trust deed; (b) qualifications or suitability for appointment as a trustee of the (c) the powers and duties of the trustees of the scheme; (d) the financial management of the scheme; (e) the prescribed residential building work for which a fidelity certificate may be issued; (f) the people who are entitled to make claims under a fidelity certificate; (g) applications for claims under a fidelity certificate; (h) dealing with claims under the scheme; (i) compliance with prudential standards. (5) A regulation prescribing a requirement for the approval criteria may apply, adopt or incorporate (with or without changes) the whole or part of a law in force in the Territory, or the whole or part of a document, as in force or existing at a particular time or from time to time.

Building Act 1993 64 54DB Deciding application (1) Before considering whether to approve a fidelity fund scheme, the Minister may, by written notice, require the trustees of the scheme to do either or both of the following: (a) give specified additional information or documents necessary to enable the Minister to make a decision about approval; (b) give a statutory declaration about the information included in the application or any additional information or documents given to the Minister. (2) Before approving a fidelity fund scheme, the Minister may require the scheme to be amended to ensure it complies with this Act. (3) The Minister may: (a) if satisfied a fidelity fund scheme complies with the approval criteria – approve the scheme to provide fidelity certificates; or (b) otherwise – refuse to approve the scheme. (4) A condition may be expressed to have effect despite anything in the prudential standards. (5) If the Minister approves a fidelity fund scheme under subsection (3)(a), each trustee named in the application under section 54DA is taken to have been approved by the Minister under section 54DBA(2)(a). Note for subsection (5) The Minister's approval under section 54DBA(2)(a) is required for the appointment of subsequent trustees of an approved scheme. 54DBA Approval of trustees (1) The trustees of an approved scheme must, as soon as practicable after appointing a trustee of the scheme, apply in writing to the Minister to approve the appointment. (2) The Minister must, by written notice to the trustees: (a) if satisfied the person meets the eligibility criteria for the appointment as specified by regulation – approve the appointment; or (b) otherwise – refuse to approve the appointment.