100Financial assurances

100 Financial assurances

100 Financial assurances

(1) This section applies if the Scheme Administrator imposes a condition on a person’s accreditation that requires the person to give the Scheme Administrator financial assurance to secure or guarantee compliance with an order 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 by the Scheme Administrator having regard to the following—

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

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

(c) how frequently the person’s activities are or will be audited,

(d) the other matters the Scheme Administrator considers relevant.

(3) Financial assurance must be in the form the Scheme Administrator considers appropriate.

Examples—

a bank guarantee or bond

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

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

(b) the person fails to comply with the order.

(5) The Scheme Administrator must give 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 Scheme Administrator must not claim more than the compliance cost of the person’s failure to comply with the order under the Act, Schedule 4A, clause 117.

(7) In this section—

compliance cost means the amount determined by multiplying the number of certificates the person failed to surrender by the scheme penalty rate for the compliance period in which the claim is made.