Document ID: chunk:federal_register_of_legislation:C2005C00497:clause:2_15:p1
Version: federal_register_of_legislation:C2005C00497
Segment Type: clause
Provision Reference: sch 2 cl 15 (pt 1/2)
Character Range: 12574–15297

15  After subsection 16B(4)
Insert:

Additional duty to give information about Australian‑incorporated subsidiaries of certain foreign corporations

 (4A) A person who is or has been an auditor of a relevant Australian‑incorporated subsidiary of a foreign corporation commits an offence if:
 (a) the person has reasonable grounds for believing that:
 (i) the subsidiary is insolvent, or there is a significant risk that the subsidiary will become insolvent; or
 (ii) the subsidiary has failed to comply with a requirement under this Act or the regulations or under the Financial Sector (Collection of Data) Act 2001; or
 (iii) an existing or proposed state of affairs may materially prejudice the interests of depositors of any ADI that is a subsidiary of the foreign corporation; and
 (b) the person does not inform APRA of the matter; and
 (c) there is no order in force under section 11 determining that this subsection does not apply to the person.

Maximum penalty: Imprisonment for 6 months.

Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine a court may impose is worked out as provided in that subsection.

Note 3: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the maximum fine worked out as mentioned in Note 2.

Additional duty to give information about foreign‑incorporated subsidiaries of certain foreign corporations

 (4B) A person who is or has been an auditor of a relevant foreign‑incorporated subsidiary of a foreign corporation commits an offence if:
 (a) the person has reasonable grounds for believing that:
 (i) the subsidiary is insolvent, or there is a significant risk that the subsidiary will become insolvent; or
 (ii) the subsidiary has failed to comply with a requirement under this Act or the regulations or under the Financial Sector (Collection of Data) Act 2001; or
 (iii) an existing or proposed state of affairs of the Australian operations of the subsidiary may materially prejudice the interests of depositors of any ADI that is a subsidiary of the foreign corporation; and
 (b) the person does not inform APRA of the matter; and
 (c) there is no order in force under section 11 determining that this subsection does not apply to the person.

Maximum penalty: Imprisonment for 6 months.

Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose a fine