Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.8 - OTHER PROVISIONS RELATING TO CONDUCT ETC CONNECTED WITH FINANCIAL PRODUCTS AND FINANCIAL SERVICES, OTHER THAN FINANCIAL PRODUCT DISCLOSURE  

Division 6 - Financial records, statements and audit  

Subdivision D - Appointment etc. of auditors  

REGULATION 7.8.15   APPOINTMENT OF AUDITOR BY FINANCIAL SERVICES LICENSEE  

7.8.15(1)   [ Purpose]  

For subsections 990B(7) and (8) of the Act, this regulation:

(a) sets out matters related to the appointment of a firm as auditor of the financial statements of a financial service [ sic ] licensee; and

(b) modifies the effect of section 990E of the Act.

7.8.15(1A)   [ Notice to ASIC lodged]  

If an applicant for a financial services licence:

(a) specifies, in the application for the licence, the name of a person or firm that is to be, or has been, appointed to audit the applicant's financial statements; and

(b) the auditor or auditors specified are appointed before the end of 1 month after the licence takes effect;

the applicant is taken to have lodged a notice under subsection 990B(6) of the Act.

7.8.15(2)   [ Appointment of members of firm, etc]  

The appointment is taken to be an appointment of each person who is:

(a) a member of the firm; and

(b) a registered company auditor;

whether the person is resident in Australia or not at the date of the appointment.

7.8.15(3)   [ Dissolution of firm]  

Unless subregulation (4) applies, the appointment of the members of a firm as auditors that is taken by subregulation (2) to have been made because of the appointment of the firm as auditor of the holder is not affected by the dissolution of the firm.

7.8.15(4)   [ Reconstitution of firm]  

If a firm that has been appointed as auditor is reconstituted because of the death, retirement or withdrawal of a member or members, or because of the admission of a new member or new members, or both:

(a) a person who:

(i) was taken under subregulation (2) to be an auditor of the financial services licensee; and

(ii) has retired or withdrawn from the firm as previously constituted;

is taken to have resigned as auditor as from the day of the retirement or withdrawal; and

(b) a person who:

(i) is a registered company auditor; and

(ii) is admitted to the firm;

is taken to have been appointed as an auditor of the holder as from the date of the admission; and

(c) the reconstitution of the firm does not affect the appointment of the continuing members of the firm who are registered company auditors as auditors; and

(d) nothing in paragraphs (a) to (c) affects the operation of section 990C of the Act.

7.8.15(5)   [ Application of provisions to deemed resignation]  

Sections 990F to 990H of the Act do not apply to a resignation mentioned in paragraph (4)(a) unless:

(a) the person who is taken to have resigned was the only member of the firm who was a registered company auditor; and

(b) there is no member of the firm who is a registered company auditor after the retirement or withdrawal of that person.

7.8.15(6)   [ Report or notice]  

A report or notice that purports to be made or given by a firm appointed as auditor is taken not to have been duly made or given unless it is signed by a member of the firm who is a registered company auditor:

(a) in the firm's name; and

(b) in his or her own name.

7.8.15(7)   [ Continuing vacancy]  

If a vacancy in the office of an auditor continues, the surviving or continuing auditor or auditors (if any) may act as auditor while the vacancy continues.

7.8.15(8)   [ No surviving or continuing auditor]  

If a vacancy occurs in the office of an auditor, and there is no surviving or continuing auditor of the financial services licensee, the financial services licensee must, within 14 days after the vacancy occurs appoint as auditor:

(a) a person who is eligible to act as auditor; or

(b) 2 or more persons each of whom is eligible to act as auditor; or

(c) a firm that is eligible to act as auditor; or

(d) 2 or more firms each of which is eligible to act as auditor; or

(e) a combination of persons and firms each of which is eligible to act as auditor.

7.8.15(9)   [ Auditor ceases to hold office]  

If an auditor ceases to hold office in accordance with paragraph 990E (a) or (d) of the Act, the financial services licensee for which the auditor acted must lodge with ASIC a notice in the prescribed form stating that the auditor has ceased to hold the office.