Document ID: chunk:federal_register_of_legislation:F2023C00831:reg:5:p3
Version: federal_register_of_legislation:F2023C00831
Segment Type: reg
Provision Reference: reg 5 (pt 3/11)
Character Range: 6197–8905

preceding month, the NTA is greater than 110% of the required NTA.
(8) Where the NTA of the licensee is less than the required NTA for a continuous period of 2 months, the licensee must notify, in writing, the following persons of the deficiency within 3 business days after that 2 month period:
(a) each person to whom it provides financial services; and
(b) each person for the benefit of whom it holds money or property on trust under Divisions 2 or 3 of Part 7.8.
(9) Subject to subsection (10), where the NTA of the licensee is at any time less than the required NTA, the licensee must not enter into a transaction with any person to whom it provides financial services that could give rise to further liabilities, contingent liabilities or other financial obligations of the licensee unless the persons specified in the subparagraphs (as applicable) of paragraph (3)(b) have certified in writing that, having conducted reasonable enquiries into the financial position of the licensee, there is no reason to believe that:
(a) the licensee will not comply with section 912A except to the extent that paragraph 912A(1)(c) requires compliance with subsections (4) and (5) of this section; and
(b) there is or will be a deficiency in any accounts maintained by the licensee for the purposes of section 981B.
(10) Where the NTA of the licensee is at any time equal to or less than 75% of the required NTA, the licensee must not enter into a transaction with any person to whom it provides financial services that could give rise to further liabilities, contingent liabilities or other financial obligations of the licensee.

Audit opinion on financial requirements
(11) The licensee must lodge with ASIC a report (the audit opinion) by a registered company auditor addressed to the licensee and ASIC for each financial year of the licensee and any other period that ASIC directs that states whether, during any part of the period for which the licensee was covered by subsection (1):
(a) in the auditor's opinion, the licensee:
(i) complied with subsections (4) and (5) and other financial requirements in conditions on its licence; and
(ii) had at all times a projection that purports to, and appears on its face to, comply with paragraph (3)(a); and
(iii) correctly calculated the projection in paragraph (3)(a) on the basis of the assumptions the licensee adopted for the projection; and
(b) following an examination of the calculations, assumptions and description prepared under paragraph (3)(c) and relied on by the licensee in complying with paragraph (3)(a), the auditor has no reason to believe that:
(i) the licensee did not satisfy paragraph 912A(1)(h) for managing the risk of having insufficient