Non-routine reporting by Approved Auditors and Approved Actuaries

32. The Act specifies certain circumstances where Approved Auditors and Approved Actuaries are required to report to APRA on a non-routine basis.[21] This may be where APRA requests specific information, or where an Approved Auditor or an Approved Actuary has information that is specified in the Act or that they consider would assist APRA in performing its functions.

33. APRA may require an Approved Auditor or an Approved Actuary to provide information, or to produce books, accounts or documents, about an insurer if it will assist APRA in performing its functions under the Act.[22] To ensure that an Approved Auditor or an Approved Actuary is able to comply with any such request from APRA, all working papers and other documentation of an Approved Auditor and an Approved Actuary in relation to the insurer must be maintained for a period of seven years after the date of the report or certificate to which the working papers or documentation relate, as required under the Corporations Act 2001.[23]

34. In assessing whether the interests of policyholders may be materially prejudiced,[24] an Approved Auditor and an Approved Actuary must consider not only a single activity or a single deficiency in isolation. Policyholder interests may be materially prejudiced by a number of activities or deficiencies that may not individually result in a material threat to policyholder interests but, when considered in total, do amount to a material threat. In such cases, the Approved Auditor or Approved Actuary must provide such information to APRA as required under the Act if they have reasonable grounds for believing that the interests of policyholders may be materially prejudiced.[25]

35. In most cases, matters reported to APRA by an Approved Auditor or an Approved Actuary should also be reported by that person to the insurer to which the matter relates. An Approved Auditor or an Approved Actuary must not notify the insurer where that person considers that by doing so the interests of policyholders would be jeopardised, or where there is a situation of mistrust between an Approved Auditor or an Approved Actuary and the Board or senior management of the insurer.

36. An Approved Auditor or an Approved Actuary who is required to provide information to APRA on a non-routine basis[26] is not excused from such a requirement on the ground that doing so would tend to incriminate them or make them liable to a penalty. Certain protection is provided under the Act[27] to Approved Auditors or Approved Actuaries that supply information to APRA in these circumstances.