Appointment of a Group Auditor and GroupAppointment of a Group Auditor and Group Actuary

Appointment of a Group Auditor and Group Actuary

6. The parent entity of a Level 2 insurance group must appoint a Group Auditor. The Group Auditor of a Level 2 insurance group must be one of the following persons:

(a) the Appointed Auditor[2] of the parent entity where the parent entity is an insurer;

(b) the Appointed Auditor[3] of an APRA-authorised insurer within the group; or

(c) a responsible auditor[4] of the parent entity where the parent entity is a NOHC.

7. In addition to the fit and proper criteria that the Group Auditor is required to meet under Prudential Standard GPS 520 Fit and Proper (GPS 520), the parent entity of a Level 2 insurance group must ensure that the Group Auditor is not:

(a) the Group Actuary;

(b) the actuary of an entity within the group carrying on insurance business;

(c) an employee or director of the entity of which a person referred to in paragraph (a) or (b) is an employee or director; or

(d) a partner of a person referred to in paragraph (a) or (b).

8. The parent entity of a Level 2 insurance group must also ensure that its Group Auditor meets the independence requirements applicable to an Appointed Auditor under Prudential Standard GPS 510 Governance.[5]

9. The parent entity of a Level 2 insurance group must appoint a Group Actuary. The Group Actuary of a Level 2 insurance group must :

(a) meet the fit and proper criteria to hold a responsible person position under paragraph 22 of GPS 520;

(b) have appropriate formal qualifications;

(c) have a minimum of 5 years relevant experience, since obtaining the qualifications referred to in paragraph (b), in the provision of actuarial services to entities carrying on insurance business and it would be prudent to conclude that the person is familiar with current issues in the provision of actuarial services to such entities;

(d) be a member of a recognised professional body for actuaries; and

(e) not be

(i) the Group Auditor;

(ii) the auditor of an entity within the Level 2 insurance group carrying insurance business;

(iii) an employee or director of an entity of which a person referred to in paragraph (i) or (ii) is an employee or director;

(iv) a partner of a person referred to in paragraph (i) or (ii); or

(v) the Chief Executive or a director of any entity within the Level 2 insurance group or its wider corporate group (where applicable).