49RAPRA may direct removal of auditor or actuary

49R APRA may direct removal of auditor or actuary

(1) APRA may, if satisfied there is a ground under subsection (3), give a written direction to a body corporate that is a general insurer to end the appointment of a person as: (a) an auditor of the general insurer; or (b) the actuary of the general insurer. (2) APRA may, if satisfied there is a ground under subsection (3), give a written direction to a body corporate that is an authorised NOHC to end the appointment of a person as: (a) the auditor of the authorised NOHC; or (b) the actuary of the authorised NOHC. (3) The grounds for giving a direction to end a person’s appointment are: (a) if the person is an auditor or the actuary of a general insurer—the person is disqualified from holding such an appointment under section 44; or (b) the person does not meet one or more of the criteria for fitness and propriety set out in the prudential standards. (4) Before directing a body corporate to end a person’s appointment, APRA must: (a) give written notice to: (i) the body corporate; and (ii) the person; and (b) give the body corporate and the person a reasonable opportunity to make submissions on the matter. (5) The notice must include a statement that any submissions in response to the notice may be discussed by APRA with other persons as mentioned in paragraph (6)(b). (6) If a submission is made in response to the notice, APRA: (a) must have regard to the submission; and (b) may discuss any matter contained in the submission with any persons APRA considers appropriate for the purpose of assessing the truth of the matter. (7) A direction to end a person’s appointment takes effect on the day specified in the direction, which must be at least 7 days after the direction is made. (8) If APRA directs a body corporate to end a person’s appointment, APRA must give the body corporate and the person a copy of the direction. (9) The power of a body corporate to comply with a direction to end a person’s appointment may be exercised on behalf of the body corporate: (a) by the Chair of the board of directors of the body corporate signing a written notice; or (b) by a majority of the directors of the body corporate (excluding any director who is the subject of the direction) jointly signing a written notice. (10) Subsection (9) does not by implication limit any other powers of a body corporate to end a person’s appointment. (11) Part VI applies to a decision by APRA to give a direction under this section on the ground referred to in paragraph (3)(b). (12) A direction to end a person’s appointment is not a legislative instrument. (13) A body corporate commits an offence if: (a) the body corporate does or fails to do an act; and (b) by doing or failing to do the act, the body corporate fails to comply with a direction under this section.

Penalty: 60 penalty units.

(14) Strict liability applies to subsection (13).