Document ID: chunk:federal_register_of_legislation:C2004A04724:body:0:p10
Version: federal_register_of_legislation:C2004A04724
Segment Type: other
Provision Reference: 
Character Range: 23535–26563

by omitting from subsection (3) "under this section" and substituting "and the renewal of a person's registration each";

(c) by inserting after subsection (3) the following subsections:

   "(3A) Within 4 months after the end of each accounting period, a registered insurance broker must produce satisfactory audited accounts for that period to the Commissioner.

   Penalty: 30 penalty units.

  "(3B) If, before the end of the 4 month period referred to in subsection (3A), the Commissioner grants a registered insurance broker an extension of time to produce the accounts, the broker must produce the accounts within the extended period.

  Penalty: 30 penalty units.";

  (d) by omitting subsection (5) and substituting the following subsections:

    "(5) If the Commissioner:

    (a) registers an applicant; or

    (b) renews the registration of an applicant; or

    (c) refuses to renew the registration of an applicant; or

    (d) cancels the registration of an insurance broker under subsection (4);

   the Commissioner must publish notice of it in the Gazette.

    "(6) If:

      (a) a broker provides audited accounts to the Commissioner under this section; and

      (b) those accounts do not meet the requirement specified in paragraph (a), (b), (c), (d) or (e) of the definition of 'satisfactory audited accounts' in subsection (7); and

      (c) the broker, at the request of the Commissioner, gives the Commissioner a written explanation why the requirement has not been met;

   the Commissioner may renew the broker's registration if the Commissioner is satisfied, having regard to the explanation, that the failure of the accounts to meet that request is not attributable to the dishonesty, recklessness or financial mismanagement of the broker.

    "(7) In this section:

   'satisfactory audited accounts', in relation to a broker, include, but are not limited to, the following:

    (a) accounts that are in an approved form;

    (b) accounts that are arithmetically correct;

    (c) accounts that show that the sum of:

          (i) the amount of an account maintained by the broker under subsection 26(1); and

          (ii) the amount of prescribed investments by the broker; and

          (iii) amounts due to the broker from insurance debtors;

        is equal to, or exceeds, all the broker's insurance liabilities;

        (d) accounts that indicate that the broker is able to meet the broker's financial obligations as they fall due;

        (e) accounts that contain such other information as is required by the approved form;

      (f) accounts that are audited by an approved auditor.".

Suspension or cancellation of registration

18. Section 25 of the Principal Act is amended by inserting after subsection (1) the following subsections:

  "(1A) If:

    (a) a person registered under this Part, or a director, employee or agent of such a person, becomes bankrupt or insolvent; or

    (b) a person registered under this Part fails to discharge the ordinary obligations