(1) A joining exchange must, as soon as practicable, and in any event within 2 months, after the joining day in relation to the joining exchange:

(a)

prepare a statement of the assets and liabilities of its fidelity fund as on that day; and

(b)

appoint a registered company auditor to audit the statement.

(2) Without limiting the generality of subsection (1), a statement prepared under that subsection must set out full particulars, so far as known when the statement is prepared, of all liabilities (including contingent liabilities) of the joining exchange's fidelity fund in respect of transferred claims. (3) An auditor appointed to audit a statement prepared under subsection (1) in relation to a joining exchange's fidelity fund must, within 1 month after the statement is prepared:

(a)

audit the statement; and

(b)

cause a report on the statement to be given to the Board and a copy of the report to be given to the board of the joining exchange.

(4) The Board must give to ASIC a copy of a report given to the Board under this section, and a copy of the statement to which the report relates, within 14 days after the report is given to the Board.