Div 10Introduction

Division 10—Introduction

10‑1  Simplified outline of this Part

Registering trustees

An individual may apply to the Inspector‑General to be registered as a trustee. The Inspector‑General will refer the application to a committee who will consider the applicant’s qualifications, conduct and fitness and whether the applicant will take out appropriate insurance. Registration may be subject to conditions, is for 3 years and may be renewed.

A registered trustee must:

 (a) lodge an annual return with the Inspector‑General that includes proof that the trustee has appropriate insurance; and

 (b) give the Inspector‑General notice if the trustee’s circumstances change or if certain other events happen.

Disciplining registered trustees

If a registered trustee fails to comply with certain requirements, such as the requirement to lodge a document or give information, the Inspector‑General may give directions that may result in the trustee being unable to accept further appointments. The Inspector‑General may also seek a Court order.

The Inspector‑General may suspend or cancel a trustee’s registration in certain circumstances. The Inspector‑General may also give the trustee a show‑cause notice. If such a notice is given and no sufficient explanation is given, the Inspector‑General may take further disciplinary action on the decision of a committee.

Industry bodies may notify the Inspector‑General where they suspect there are grounds for disciplinary action.

Court powers

The Court has broad powers to make orders in relation to registered trustees (including imposing conditions on registration).

10‑5  Working cooperatively with ASIC

  In performing his or her functions and exercising his or her powers under this Act in relation to persons who are, have been or may become both registered trustees under this Act and registered liquidators under the Corporations Act 2001, the Inspector‑General must work cooperatively with ASIC.