Document ID: chunk:federal_register_of_legislation:F2024L00638:body:0:p4
Version: federal_register_of_legislation:F2024L00638
Segment Type: other
Provision Reference: 
Character Range: 8218–11104

of the RSE licensee.[12]

Criteria to determine if a responsible person is fit and proper
18.         An RSE licensee must clearly define and document the competencies required for each responsible person position.
19.         For the purposes of the SIS Act and for the purposes of determining whether a person is fit and proper to hold a responsible person position, the criteria are whether[13]:
(a)          it would be prudent for an RSE licensee to conclude that the person possesses the competence, character, diligence, experience, honesty, integrity and judgement to perform properly the duties of the responsible person position;
(b)          it would be prudent for an RSE licensee to conclude that the person possesses the education or technical qualifications, knowledge and skills relevant to the duties and responsibilities of an RSE licensee;
(c)          the person is not disqualified under the SIS Act from holding the position; and
(d)          the person either:
(i)            has no conflict in performing the duties of the responsible person position; or
(ii)         if the person has a conflict, it would be prudent for an RSE licensee to conclude that the conflict will not create a material risk that the person will fail to perform properly the duties of the position.[14]

Additional criteria applying to RSE auditors[15]
20.         The criteria for fitness and propriety of an individual RSE auditor and a lead auditor, for the purposes of the SIS Act are those contained in paragraphs 19 and 21.[16]
21.         The additional criteria which must be met for an individual RSE auditor and a lead auditor to be fit and proper are that the person:
(a)          is registered as an auditor under the Corporations Act 2001 (Corporations Act) or is the Auditor-General (or a delegate of the Auditor-General) of the Commonwealth, a State or Territory;
(b)          is not the Chief Executive Officer (CEO) or a director or employee of (i) the RSE licensee or (ii) a connected entity;
(c)          has a minimum of five years' relevant experience in the audit of the business operations of RSE licensees;
(d)          has experience relating to the business operations of RSE licensees that is sufficiently relevant and recent to provide reasonable assurance that the person is familiar with current issues in the audit of the business operations of RSE licensees;
(e)          is not:
(i)            the RSE actuary of an RSE within the RSE licensee's business operations;
(ii)         an employee or director of a body corporate, statutory body, partnership, trust, or commercial or professional enterprise of any kind of which the RSE actuary is an employee or director[17]; or
(iii)       a partner of the RSE actuary;
(f)           is a member of a recognised professional body; and
(g)          is ordinarily resident in Australia.
22.         A criterion