105WAudit of accounting and other records and performance audit

105W Audit of accounting and other records and performance audit

105W Audit of accounting and other records and performance audit

(1) The Authority may appoint an appropriately qualified person to audit or inspect, and report to the Authority on, the accounting and other records relating to the business or financial position of a licence holder, including accounting and other records relating to—

(a) the manner in which its funds are invested, or

(b) compliance with this Act and the regulations (including any Insurance Guidelines).

(2) A person so appointed is (if directed to do so by the Authority) to report to the Authority on whether the licence holder is carrying out its business for insurance contracts entered into under Part 6 or cover provided under Part 6B effectively, economically and efficiently.

(3) A person so appointed is, for the purpose of exercising any functions under this section, entitled to inspect the accounting and other records of the licence holder.

(4) A licence holder must provide all reasonable assistance to enable the exercise of those functions.

(5) A person must not intentionally obstruct or delay a person exercising a function under this section.

(6) A person exercising functions under this section has qualified privilege in proceedings for defamation in respect of any statement that the person makes orally or in writing in the course of the exercise of those functions.

(7) A licence holder or another person who contravenes any requirement imposed on the holder or other person by or under this section is guilty of an offence.

Maximum penalty—500 penalty units.

(8) The Authority may from time to time carry out an audit to determine the profitability of a licence holder and for that purpose may exercise the functions of a person appointed under subsection (1). The Authority is to report on any such audit to the Board of the Authority and to the Minister, on a confidential basis.