66Obligations of auditors—compliance

#### 66 Obligations of auditors—compliance When section applies (1) This section applies to a person in relation to an RSA provider if: (a) the person forms the opinion that it is likely that a contravention of this Act or the regulations or the Financial Sector (Collection of Data) Act 2001 may have occurred, may be occurring, or may occur, in relation to the RSA provider; and (b) the person formed the opinion in the course of, or in connection with, the performance by the person of audit functions under this Act or the regulations in relation to the RSA provider. Section does not apply if the person believes that his or her opinion is not relevant to the performance of audit functions (2) This section does not apply to the person if the person has an honest belief that the opinion is not relevant to the performance of those functions. RSA provider and Regulator to be told about the matter (3) Subject to subsection (4), the person must, as soon as practicable after forming the opinion mentioned in paragraph (1)(a): (a) tell the RSA provider about the matter in writing; and (b) if the contravention about which the person has formed the opinion mentioned in paragraph (1)(a) is of such a nature that it may affect the interests of holders of RSAs—tell the Regulator about the matter in writing. The person may not have to tell the RSA provider or Regulator about the matter (4) The person does not have to: (a) tell the RSA provider about the matter if: (i) the person has been told by another person to whom this section applies that the other person has already told the RSA provider about the matter; and (ii) the first‑mentioned person has no reason to disbelieve that other person; or (b) tell the Regulator about the matter if: (i) the person has been told by another person to whom this section applies that the other person has already told the Regulator about the matter; and (ii) the first‑mentioned person has no reason to disbelieve that other person. Penalties for misinformation (5) A person (the first person) commits an offence if: (a) this section applies to the first person; and (b) the first person is aware of a matter that must, under this section, be told to an RSA provider; and (c) the first person tells another person to whom this section applies that the first person has told the RSA provider about the matter; and (d) the first person has not done what the first person told the other person he or she had done. Penalty: Imprisonment for 12 months. > Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. (5A) A person (the first person) commits an offence if: (a) this section applies to the first person; and (b) the first person is aware of a matter that must, under this section, be told to the Regulator; and (c) the first person tells another person to whom this section applies that the first person has told the Regulator about the matter; and (d) the first person has not done what the first person told the other person he or she had done. Penalty: Imprisonment for 12 months. > Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. No civil liability for telling about a matter (6) A person to whom this section applies is not liable in a civil action or civil proceeding in relation to telling the Regulator, or the RSA provider, about a matter as required by this section. Offences (7) A person commits an offence if the person contravenes subsection (3). Penalty: 50 penalty units. (8) A person commits an offence if the person contravenes subsection (3). This is an offence of strict liability. Penalty: 25 penalty units. > Note 1: For strict liability, see section 6.1 of the Criminal Code. > Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.