21Registration of brokers

21 Registration of brokers

(1) Subject to subsection (2), if a person who proposes to carry on business as an insurance broker applies under section 20 for registration under this Part, ASIC must register the applicant and give the applicant a certificate of registration if:

(a) ASIC is satisfied that there is in force any contract of insurance required under paragraph 19(1)(b); and

(b) the applicant has produced to ASIC a copy of each foreign agency agreement (if any) that authorises the applicant to arrange contracts as agent for an insurer; and

(ba) if the application is for registration in respect of a class of general insurance business that, under the regulations, is domestic or personal insurance business and there is in force an arrangement, approved by ASIC, for dealing with complaints against persons carrying on that class of general insurance businessASIC is satisfied that the person is a party to the arrangement; and

(c) the applicant has paid the prescribed fee.

(1A) Subject to subsection (2), if:

(a) a person is registered under this Part; and

(b) the person applies under section 20 to renew the registration;

ASIC must renew the registration and give the applicant a certificate of renewal of registration if:

(c) ASIC is satisfied that there is in force in respect of the applicant any contract of insurance required under paragraph 19(1)(b); and

(d) the applicant has produced to ASIC a copy of each foreign agency agreement (if any) that authorises the applicant to arrange contracts as agent for an insurer; and

(da) if the application is for renewal of registration in respect of a class of general insurance business that, under the regulations, is domestic or personal insurance business and there is in force an arrangement, approved by ASIC, for dealing with complaints against persons carrying on that class of general insurance businessASIC is satisfied that the person is a party to the arrangement; and

(e) the applicant has produced, or produces, satisfactory audited accounts of the applicant’s business as an insurance broker, in respect of the accounting period ending on, or not more than 12 months before, the day that the registration would end if it is not renewed; and

(f) the applicant has paid the prescribed fee.

Note: A person can carry on business as an insurance broker only if the person is registered under this Part (see sections 19, 21 and 24).

(2) If:

(a) an applicant, or a director, employee or agent of an applicant has been convicted of an offence referred to in subsection 25(1); or

(b) an applicant, or a director, employee or agent of an applicant, is bankrupt or insolvent; or