sec.57CReporting serious breaches

### sec.57C Reporting serious breaches This section applies to an auditor who carries out a review of a trust account for a project trust or retention trust if the auditor finds that— both of the following apply— the trustee of the trust wilfully contravened a chapter 2 requirement in relation to the trust account; the contravention caused, or is likely to cause, financial loss to a beneficiary of the trust; or the trustee of the trust has repeatedly failed to comply with 1 or more chapter 2 requirements in relation to the trust account; or the trustee of the trust has contravened this Act in a way prescribed by regulation. The auditor must, using an approved way, notify the commissioner of the auditor’s finding within 5 business days after making the finding. Maximum penalty—200 penalty units or 1 year’s imprisonment. In this section— wilfully means intentionally, recklessly or with gross negligence. s 57C ins 2020 No. 24 s 63 sub 2022 No. 11 s 31 (sec.57C-ssec.1) This section applies to an auditor who carries out a review of a trust account for a project trust or retention trust if the auditor finds that— both of the following apply— the trustee of the trust wilfully contravened a chapter 2 requirement in relation to the trust account; the contravention caused, or is likely to cause, financial loss to a beneficiary of the trust; or the trustee of the trust has repeatedly failed to comply with 1 or more chapter 2 requirements in relation to the trust account; or the trustee of the trust has contravened this Act in a way prescribed by regulation. (sec.57C-ssec.2) The auditor must, using an approved way, notify the commissioner of the auditor’s finding within 5 business days after making the finding. Maximum penalty—200 penalty units or 1 year’s imprisonment. (sec.57C-ssec.3) In this section— wilfully means intentionally, recklessly or with gross negligence. - (a) both of the following apply— (i) the trustee of the trust wilfully contravened a chapter 2 requirement in relation to the trust account; (ii) the contravention caused, or is likely to cause, financial loss to a beneficiary of the trust; or - (i) the trustee of the trust wilfully contravened a chapter 2 requirement in relation to the trust account; - (ii) the contravention caused, or is likely to cause, financial loss to a beneficiary of the trust; or - (b) the trustee of the trust has repeatedly failed to comply with 1 or more chapter 2 requirements in relation to the trust account; or - (c) the trustee of the trust has contravened this Act in a way prescribed by regulation. - (i) the trustee of the trust wilfully contravened a chapter 2 requirement in relation to the trust account; - (ii) the contravention caused, or is likely to cause, financial loss to a beneficiary of the trust; or