27Approval of rating entities

27 Approval of rating entities (1) On written application by an entity, the director-general may approve the entity to prepare rating reports. (2) The director-general may only approve an entity if— (a) the entity holds an Australian financial services licence that authorises the entity to provide services in accordance with this section; and (b) the director-general is satisfied the entity— (i) has appropriate processes to undertake assessments of the operational and financial capacity of an applicant for a licence, or a licensee, to undertake residential development activities; and (ii) has proven procedures for training and monitoring people employed or engaged by the entity to undertake the assessments; and (iii) has the operational and financial capacity to undertake the assessments; and (iv) imposes fees that are reasonable taking into account the scope of the services being offered; and (v) has appropriate processes for internally reviewing assessments and managing complaints; and (c) the entity meets any other requirement prescribed by regulation.

Rating entities Part 3 (3) An approval— (a) must be for a term not longer than 5 years; and (b) is subject to— (i) any condition the director-general considers appropriate; and (ii) any condition prescribed by regulation. (4) An approval is a notifiable instrument. Australian financial services licence—see the Corporations Act, section 9.