Financial Sector Legislation Amendment (Simplifying Regulation and Review) Act 2007 (154 of 2007)

Schedule 1   Streamlining prudential regulation

Part 1   Amendments commencing on Royal Assent

Banking Act 1959

36   Section 18

Repeal the section, substitute:

18 Referring matters to professional associations for auditors

(1) If APRA is of the opinion that an auditor of a relevant body corporate (see subsection (2)):

(a) has failed, whether within or outside Australia, to perform adequately and properly his or her duties or functions as an auditor under:

(i) this Act, the regulations or the prudential standards; or

(ii) any other law of the Commonwealth, a State or a Territory; or

(b) is otherwise not a fit and proper person to be the auditor of a relevant body corporate;

APRA may refer the details of the matter to either or both of the following:

(c) the Companies Auditors and Liquidators Disciplinary Board established by Division 1 of Part 11 of the Australian Securities and Investments Commission Act 2001;

(d) those members of the professional association of the auditor whom APRA believes will be involved in considering or taking any disciplinary or other action concerning the matter against the auditor.

(2) For the purposes of this section, each of the following is a relevant body corporate :

(a) an ADI;

(b) an authorised NOHC;

(c) a subsidiary of an ADI or authorised NOHC;

(d) if an ADI is a subsidiary of a foreign corporation (whether or not the ADI is itself a foreign corporation) - a subsidiary of that foreign corporation that is incorporated in, or carries on business in, Australia.

(3) If APRA refers details of a matter under this section, APRA must also give written notice of the referral (including the nature of the matter) to the auditor.