Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) APRA may, if satisfied there is a ground under subsection (3), give a written direction to a body corporate that is a general insurer to end the appointment of a person as:
(a) an auditor of the general insurer; or
(b) the actuary of the general insurer.
(2) APRA may, if satisfied there is a ground under subsection (3), give a written direction to a body corporate that is an authorised NOHC to end the appointment of a person as:
(a) the auditor of the authorised NOHC; or
(b) the actuary of the authorised NOHC.
(3) The grounds for giving a direction to end a person's appointment are:
(a) if the person is an auditor or the actuary of a general insurer--the person is disqualified from holding such an appointment under section 44; or
(b) the person does not meet one or more of the criteria for fitness and propriety set out in the prudential standards.
(4) Before directing a body corporate to end a person's appointment, APRA must:
(a) give written notice to:
(i) the body corporate; and
(ii) the person; and
(b) give the body corporate and the person a reasonable opportunity to make submissions on the matter.
(5) The notice must include a statement that any submissions in response to the notice may be discussed by APRA with other persons as mentioned in paragraph (6)(b).
(6) If a submission is made in response to the notice, APRA:
(a) must have regard to the submission; and
(b) may discuss any matter contained in the submission with any persons APRA considers appropriate for the purpose of assessing the truth of the matter.
(7) A direction to end a person's appointment takes effect on the day specified in the direction, which must be at least 7 days after the direction is made.
(8) If APRA directs a body corporate to end a person's appointment, APRA must give the body corporate and the person a copy of the direction.
(9) The power of a body corporate to comply with a direction to end a person's appointment may be exercised on behalf of the body corporate:
(a) by the Chair of the board of directors of the body corporate signing a written notice; or
(b) by a majority of the directors of the body corporate (excluding any director who is the subject of the direction) jointly signing a written notice.
(10) Subsection (9) does not by implication limit any other powers of a body corporate to end a person's appointment.
(11) Part VI applies to a decision by APRA to give a direction under this section on the ground referred to in paragraph (3)(b).
(12) A direction to end a person's appointment is not a legislative instrument.
(13) A body corporate commits an offence if:
(a) the body corporate does or fails to do an act; and
(b) by doing or failing to do the act, the body corporate fails to comply with a direction under this section.
(14) Strict liability applies to subsection (13).
Note: For strict liability , see section 6.1 of the Criminal Code .