Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:7:p8
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 7 (pt 8/39)
Character Range: 1123044–1125630

is eligible to act as auditor.
 (9) If an auditor ceases to hold office in accordance with paragraph 990E(a) or (d) of the Act, the financial services licensee for which the auditor acted must lodge with ASIC a notice in the prescribed form stating that the auditor has ceased to hold the office.

7.8.16  When person is ineligible to act as auditor of financial services licensee
 (1) For section 990C of the Act, a person is ineligible to act as auditor of a financial services licensee in any of the following circumstances:
 (a) the person is not a registered company auditor;
 (b) the person is indebted in an amount exceeding $5 000 to:
 (i) the financial services licensee; or
 (ii) if the financial services licensee is a body corporate—to a body corporate related to the financial services licensee;
 (c) a body corporate in which the person has a substantial holding is indebted in an amount exceeding $5 000 to:
 (i) the financial services licensee; or
 (ii) if the financial services licensee is a body corporate—to a body corporate related to the financial services licensee;
 (d) the person is a partner or employee of the financial services licensee;
 (e) if the financial services licensee is a body corporate—the person is:
 (i) an officer of the body; or
 (ii) a partner, employer or employee of an officer of the body; or
 (iii) a partner or employee of an employee of an officer of the body.
 (2) For section 990C of the Act, a firm is ineligible to act as auditor of a financial services licensee at a particular time unless:
 (a) at least 1 member of the firm is a registered company auditor who is ordinarily resident in Australia; and
 (b) if the business name under which the firm is carrying on business is not registered under a law of a State or Territory—a return has been lodged in the prescribed form showing, in relation to each member of the firm:
 (i) the member's full name; and
 (ii) the member's address at that time; and
 (c) no member of the firm is indebted in an amount exceeding $5 000 to:
 (i) the financial services licensee; or
 (ii) if the financial services licensee is a body corporate—to a body corporate related to the financial services licensee; and
 (d) no body corporate in which any member of the firm has a substantial holding is indebted in an amount exceeding $5 000 to:
 (i) the financial services licensee; or
 (ii) if the financial services licensee is a body corporate—to a body corporate related to the financial services licensee; and
 (e) no member of the firm is a partner or employee of the financial services licensee;