Bankruptcy Act 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 2 - REGISTERING AND DISCIPLINING PRACTITIONERS  

Division 25 - Insurance  

SECTION 25-1   REGISTERED TRUSTEES TO MAINTAIN INSURANCE  
Registered trustee must maintain insurance

25-1(1)    
A registered trustee must maintain:

(a)    adequate and appropriate professional indemnity insurance; and

(b)    adequate and appropriate fidelity insurance;

against the liabilities that the trustee may incur working as a registered trustee.

25-1(2)    
The Inspector-General may, by legislative instrument, determine what constitutes adequate and appropriate professional indemnity insurance, and adequate and appropriate fidelity insurance, in relation to either or both of the following:

(a)    specified circumstances;

(b)    one or more specified classes of registered trustees.

Offence

25-1(3)    
A person commits an offence if:

(a)    the person is subject to a requirement under subsection (1) ; and

(b)    the person intentionally or recklessly fails to comply with the requirement.

Penalty: 1,000 penalty units.

25-1(4)    
A person commits an offence of strict liability if:

(a)    the person is subject to a requirement under subsection (1) ; and

(b)    the person fails to comply with the requirement.

Penalty: 60 penalty units.