Document ID: chunk:federal_register_of_legislation:C2025C00157:section:38aa:p2
Version: federal_register_of_legislation:C2025C00157
Segment Type: section
Provision Reference: s 38AA (pt 2/2)
Character Range: 119113–121209

the extent to which the breach indicates that the body corporate's arrangements to ensure compliance with this Act or with the prudential standards might be inadequate;
 (d) the actual or potential financial loss arising or that will arise from the breach:
 (i) to policy holders of the body corporate; or
 (ii) to the body corporate;
 (e) any matters prescribed by the regulations for the purposes of this paragraph.

Offence in relation to matters requiring notice as soon as practicable
 (6) A body corporate commits an offence if the body corporate contravenes subsection (4).
Penalty: 200 penalty units.

Defence if auditor or actuary notifies breach
 (7) Subsection (6) does not apply to a body corporate in relation to a breach referred to in subsection (4) if:
 (a) an auditor or the actuary of the body corporate gives APRA a written report about the breach or matter; and
 (b) the report is given before, or within 10 business days after, the body corporate becomes aware of the breach or matter.
Note 1: Auditors and actuaries must give APRA certain information under section 49A and may give APRA information under section 49B.
Note 2: The defendant bears an evidential burden in relation to the matters in subsection (7). See subsection 13.3(3) of the Criminal Code.

Ancillary offences
 (8) If an individual:
 (a) commits an offence under subsection (2) or (6) because of Part 2.4 of the Criminal Code; or
 (b) commits an offence under Part 2.4 of the Criminal Code in relation to an offence under subsection (2) or (6);
the individual is punishable on conviction by a fine not exceeding 40 penalty units.

Limits on information to be provided
 (9) A notice or report given under subsection (1) or (4) must not include information, books, accounts or documents with respect to the affairs of an individual insured person, unless the information, books, accounts or documents are in respect of prudential matters relating to the body corporate.

Division 4—Protections in relation to information
Note: For protections for whistleblowers, see Part 9.4AAA of the Corporations Act 2001.