Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:1_24
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 1 cl 24
Character Range: 33501–35786

24  Disqualified persons must not act for general insurers or authorised NOHCs

 (1) A disqualified person must not be or act as:
 (a) a director or senior manager of a general insurer (other than a foreign general insurer); or
 (b) a senior manager, or agent in Australia for the purpose of section 118, of a foreign general insurer; or
 (c) a director or senior manager of an authorised NOHC.

 (2) A person commits an offence if the person contravenes subsection (1).

Maximum penalty: Imprisonment for 2 years.

 (3) A person commits an offence if the person contravenes subsection (1). This is an offence of strict liability.

Maximum penalty: 60 penalty units.

 (4) A body corporate must not allow a disqualified person to be or act as:
 (a) if the body corporate is a general insurer (other than a foreign general insurer)—a director or senior manager of the insurer; or
 (b) if the body corporate is a foreign general insurer—a senior manager, or agent in Australia for the purpose of section 118, of the insurer; or
 (c) if the body corporate is an authorised NOHC—a director or senior manager of the NOHC.

 (5) A body corporate commits an offence if it contravenes subsection (4).

Maximum penalty: 250 penalty units.

 (6) A body corporate commits an offence if it contravenes subsection (4). This is an offence of strict liability.

Maximum penalty: 60 penalty units.

 (7) In a prosecution under subsection (5), it is a defence if the defendant:
 (a) contacted APRA within a reasonable period before allowing the person to be or act as a director, senior manager or agent (as the case may be); and
 (b) was advised by APRA that the person was not a disqualified person.

Note: A defendant bears an evidential burden in relation to the matters in this subsection (see section 13.3(3) of the Criminal Code).

 (8) A failure to comply with this section does not affect the validity of an appointment or transaction.

Note 1: For strict liability, see section 6.1 of the Criminal Code.

Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 3: If a body corporate is convicted of an offence against this section, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above.