Document ID: chunk:federal_register_of_legislation:C2025C00134:section:130aa:p2
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 130AA (pt 2/3)
Character Range: 689633–692374

takes all reasonable steps to correct the contravention as soon as possible after the member becomes aware of those circumstances.
Note: A defendant bears an evidential burden in relation to the matters in this subsection, see subsection 13.3(3) of the Criminal Code.

Contravention by lead auditor
 (4) A person contravenes this subsection if:
 (a) the person is the lead auditor for an audit of a registrable superannuation entity; and
 (b) the person forms the opinion that the financial position of the entity may be, or may be about to become, unsatisfactory; and
 (c) the person formed the opinion in the course of, or in connection with, the performance by an RSE audit firm or RSE audit company of any of the following functions under this Act, the regulations, the prudential standards or the Financial Sector (Collection of Data) Act 2001 in relation to the entity:
 (i) audit functions;
 (ii) any other functions if, in the course of, or in connection with, the performance of the functions by the RSE audit firm or RSE audit company, the person obtained sufficient information to enable the person to assess the financial position of the entity; and
 (d) the person does not, immediately after the person forms the opinion, tell the Regulator, and a trustee of the entity, about the matter in writing.

No civil liability for telling about a matter
 (5) A person is not liable in a civil action or civil proceeding in relation to telling the Regulator, or a trustee of a registrable superannuation entity, about a matter as required by subsection (1), (2) or (4).

Offences—RSE audit company
 (6) A company commits an offence if the company contravenes subsection (1).
Penalty: 250 penalty units.
 (7) A company commits an offence if the company contravenes subsection (1).
Penalty: 125 penalty units.
 (8) An offence against subsection (7) is an offence of strict liability.

Offences—lead auditor and member of RSE audit firm
 (9) A person commits an offence if the person contravenes subsection (2) or (4).
Penalty: 50 penalty units.
 (10) A person commits an offence if the person contravenes subsection (2) or (4).
Penalty: 25 penalty units.
 (11) An offence against subsection (10) is an offence of strict liability.

When financial position is unsatisfactory
 (11A) For the purposes of this section, in forming an opinion whether the financial position of an entity may be about to become unsatisfactory, a person must consider any matters prescribed by the regulations for the purposes of this subsection.
 (11B) Subsection (11A) does not limit the matters that a person may consider in forming such an opinion.
 (12) For the purposes of this section, the financial position of an entity is taken to be unsatisfactory if,