Document ID: chunk:federal_register_of_legislation:C2025C00157:section:49a:p1
Version: federal_register_of_legislation:C2025C00157
Segment Type: section
Provision Reference: s 49A (pt 1/3)
Character Range: 133640–136293

49A  Additional duty of auditors and actuaries to give information

Persons to whom requirements apply
 (1) This section applies to a person who is or was an auditor or actuary of:
 (a) a general insurer; or
 (b) an authorised NOHC; or
 (c) a subsidiary of a general insurer or authorised NOHC.

Matters requiring immediate notice
 (2) If the person has reasonable grounds for believing that:
 (a) the insurer, NOHC or subsidiary is insolvent, or there is a significant risk that it will become insolvent; or
 (d) an existing or proposed state of affairs may materially prejudice the interests of:
 (i) in the case of an auditor or actuary of a general insurer or of a subsidiary of a general insurer—the insurer's policyholders; or
 (ii) in the case of an auditor or actuary of an authorised NOHC or of a subsidiary of an authorised NOHC—the policyholders of any general insurer who is a subsidiary of the NOHC; or
 (e) the general insurer, NOHC or subsidiary:
 (i) has contravened this Act or any other law; and
 (ii) the contravention is of such a nature that it may affect significantly the interest of policyholders of the general insurer or of a general insurer that is a subsidiary of the NOHC;
the person must immediately notify APRA in writing of the matter.

Offences in relation to matters requiring immediate notice
 (3) A person commits an offence if the person contravenes subsection (2).
Penalty: Imprisonment for 6 months, or 100 penalty units, or both.
 (4) A person commits an offence if the person contravenes subsection (2). This is an offence of strict liability.
Penalty: 60 penalty units.
Note 1: For strict liability, see section 6.1 of the Criminal Code.
Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Defence in relation to matters requiring immediate notice
 (5) Subsections (3) and (4) do not apply to a person in relation to a matter referred to in subsection (2) if:
 (a) the person becomes aware of the matter because the person is informed of it by a director or senior manager of the insurer, NOHC or subsidiary; and
 (b) the director or senior manager informs the person that the insurer, NOHC or subsidiary has notified APRA in writing of the matter; and
 (c) the person has no reason to disbelieve the director or senior manager.
Note: The defendant bears an evidential burden in relation to the matters in subsection (5). See subsection 13.3(3) of the Criminal Code.

Matters requiring notice as soon as practicable
 (6) If the person has reasonable grounds for believing:
 (a) any of the following:
 (i) the insurer, NOHC or subsidiary has failed or will fail to