Commonwealth Consolidated Acts

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APRA may remove an auditor of an ADI

  (1)   This section applies to a person who is an appointed auditor of an ADI.

  (2)   APRA may direct (in writing) that an ADI remove the person from the position if APRA is satisfied that the person:

  (a)   has failed to perform adequately and properly the functions and duties of the position as required under this Act, the prudential standards or the Financial Accountability Regime Act 2023 ; or

  (b)   does not meet one or more of the criteria for fitness and propriety set out in the prudential standards; or

  (c)   either:

  (i)   for a person who is a disqualified person only because he or she was disqualified under section   21--is disqualified from being or acting as an auditor of the ADI; or

  (ii)   otherwise--is a disqualified person.

  (3)   Before directing an ADI to remove a person, APRA must give written notice to:

  (a)   the person; and

  (b)   the ADI;

giving each of them a reasonable opportunity to make submissions on the matter.

  (4)   If a submission is made to APRA in response to the notice, APRA must have regard to the submission and may discuss any matter contained in the submission with such persons as it considers appropriate for the purpose of assessing the truth of the matter.

  (5)   A notice given under subsection   (3) to a person or an ADI must state that any submissions made in response to the notice may be discussed by APRA with other persons as mentioned in subsection   (4).

  (6)   A direction takes effect on the day specified in it, which must be not earlier than 7 days after it is made.

  (7)   If APRA directs an ADI to remove a person, APRA must give a copy of the direction to the person and to the ADI.

  (7A)   An ADI must comply with a direction under this section.

Note:   For enforcement of the direction, see section   11CG.

  (7B)   The power of an ADI to comply with a direction under this section may be exercised by giving a written notice to the person who is the subject of the direction.

  (7C)   Subsection   (7B) does not, by implication, limit any other powers of an ADI to remove a person.

  (8)   Part   VI applies to a direction given by APRA under this section.

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