Document ID: chunk:federal_register_of_legislation:C2004A04724:body:0:p11
Version: federal_register_of_legislation:C2004A04724
Segment Type: other
Provision Reference: 
Character Range: 26304–29282

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 of an insurance intermediary as set out in decision-making principles in force under section 41A;

the Commissioner may:

    (c) suspend the registration of the person for such period as the Commissioner considers appropriate; or

  (d) cancel the registration of the person.

  "(1B) If:

     (a) the Commissioner renews the registration of a broker after having regard to the audited accounts provided for a particular accounting period; and

     (b) during the period of the continued registration audited accounts for the next accounting period are provided to the Commissioner; and

     (c) the Commissioner is satisfied that those accounts are such that a further application for the renewal of registration would be refused;

the Commissioner may, despite the fact that the period of renewed registration has not ended:

     (d) suspend registration of the broker for such period as the Commissioner considers appropriate; or

  (e) cancel the registration of the broker.".

Annual return

  19. Section 25A of the Principal Act is amended:

     (a) by omitting paragraph (2)(a) and substituting the following paragraph:

      "(a) must be in an approved form;";

     (b) by omitting from paragraphs (2)(b) and (c) "shall" and substituting "must";

  (c) by omitting from paragraph (2)(c) "and";

     (d) by omitting paragraph (2)(d) and substituting the following paragraphs:

         "(d) unless paragraph (e) applies—must be lodged within 4 months after the end of the accounting period to which it relates; and

         (e) if, before the end of the lodgment period referred to in paragraph (d), the Commissioner grants an extension of the lodgment period—must be lodged within the extended period.".

Insertion of new section

20. After section 25B of the Principal Act the following section is inserted:

Accounting records to be kept by registered brokers

"25C.(1) A registered insurance broker must keep records that record and explain:

    (a) the transactions engaged in by the broker to carry on business as an insurance broker; and

  (b) the financial position of the broker.

"(2) The records must be kept so that the broker's accounts can be properly prepared and audited.

"(3) A broker must not, without reasonable excuse, contravene a requirement under this section.

Penalty: 100 penalty units.".

Insurance broking accounts

  21. Section 26 of the Principal Act is amended:

    (a) by omitting from paragraph (1)(a) "arranged or effected or to be arranged or effected by the broker" and substituting "or proposed contract of insurance";

  (b) by adding after subsection (1A) the following subsection:

    "(1B) If money referred to in subsection (1) is paid to a person who