62VFinancial assurances

62V Financial assurances

62V Financial assurances

(1) This clause applies if the Scheme Administrator imposes a condition on the accreditation of a person as a certificate provider requiring the person to provide financial assurance to the Scheme Administrator to secure or guarantee the person’s compliance with an order that may be made against the person under the Act, Schedule 4A, clause 117.

(2) The amount of financial assurance required by the Scheme Administrator must be determined having regard to the following—

(a) the activities for which the person is accredited or is to be accredited,

(b) the number of certificates the person has created or is likely to create,

(c) the frequency of audits conducted or to be conducted of the person’s activities,

(d) other matters the Scheme Administrator considers relevant.

(3) Financial assurance must be in the form the Scheme Administrator considers appropriate, for example a bank guarantee or bond.

(4) A claim may be made on the financial assurance provided by a scheme participant only if—

(a) an order is made against the person under the Act, Schedule 4A, clause 117, and

(b) the person who gave the assurance fails to comply with the order.

(5) The Scheme Administrator must give to the person who provided financial assurance written notice of an intention to make a claim at least 21 days before making the claim.

(6) The maximum amount the Scheme Administrator may claim is calculated by multiplying the number of certificates the person failed to surrender in compliance with the order by the scheme penalty rate for the compliance period in which the claim is made.

cl 62V: Ins 2022 (607), Sch 1[57].