Commonwealth Consolidated Acts

INSURANCE ACT 1973 - SECT 49R

  (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.

Penalty:   60 penalty units.

  (14)   Strict liability applies to subsection   (13).

Note:   For strict liability , see section   6.1 of the Criminal Code .