Commonwealth Numbered Acts

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Obligations of actuaries and auditors-solvency When section applies
130.(1) This section applies to a person (the "first person") in relation to a
superannuation entity if:

   (a)  the first person forms the opinion that the financial position of the
        entity may be, or may be about to become, unsatisfactory; and

   (b)  the first person formed the opinion in the course of, or in connection
        with, the performance by the first person of actuarial or audit
        functions under this Act or the regulations in relation to the entity.
        Trustee to be told about financial position

(2) The first person must tell the trustee of the entity about the matter in
writing. However, this rule does not apply if the first person has an honest
belief that the trustee has already been told about the matter. Commissioner
may be told

(3) The first person may tell the Commissioner about the matter. The first
person is not liable in a civil action or civil proceeding in relation to the
telling. Trustee's report

(4) If the first person:

   (a)  tells the trustee about the matter; and

   (b)  does not tell the Commissioner about the matter; the first person
        must, as soon as practicable, give the trustee a written notice
        requesting the trustee to give the first person, before the end of the
        period specified in the notice, a written report about the action (if
        any) the trustee has taken, or proposes to take, to deal with the
        matter. The period specified in the notice must be reasonable. The
        trustee must comply with the request. Report to Commissioner

(5) If:

   (a)  the first person makes such a request; and

   (b)  either:

        (i)    the trustee does not comply with the request; or

        (ii)   the trustee complies with the request, but the first person is
               dissatisfied with:

                (A)  the action taken, or proposed to be taken, by the trustee
                     to deal with the matter concerned; or

                (B)  the inaction of the trustee in relation to the matter
                     concerned; the first person must give the Commissioner a
                     written report about the matter as soon as practicable

   (c)  if subparagraph (b)(i) applies-the expiry of the deadline for the
        receipt of the report; or

   (d)  if subparagraph (b)(ii) applies-the first person becomes dissatisfied
        as mentioned in that subparagraph. Offence

(6) A person who intentionally or recklessly contravenes subsection (2), (4)
or (5) is guilty of an offence punishable on conviction by a fine not
exceeding 50 penalty units. When financial position is unsatisfactory

(7) For the purposes of this section, the financial position of an entity is
taken to be unsatisfactory if, and only if, under the regulations, the
financial position of the entity is treated as unsatisfactory. 

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