Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 (101 of 2007)

Schedule 1   Amendments

Part 1   Amendments commencing on Royal Assent

Corporations Act 2001

65   After section 342

Insert:

342AA Exemption orders - non-auditor members and former members of audit firms; former employees of audit companies

(1) On an application made in accordance with subsection (3) by any of the following, ASIC may make an order in writing relieving the applicant from all or specified requirements of Division 3 of Part 2M.4 (auditor independence):

(a) a member of the firm who is not a registered company auditor;

(b) a person who has ceased to be:

(i) a member of an audit firm; or

(ii) a director of an audit company; or

(iii) a professional employee of an audit company.

Note: For the criteria for making orders under this section, see section 342AC.

(2) The order may:

(a) be expressed to be subject to conditions; and

(b) be indefinite or limited to a specified period.

(3) The application must be:

(a) in writing and signed by the applicant; and

(b) lodged with ASIC.

(4) ASIC must give the applicant written notice of the making, revocation or suspension of the order.

(5) An order under subsection (1) is not a legislative instrument.

342AB Exemption orders - class orders for non-auditor members etc.

(1) ASIC may make an order in writing in respect of a specified class of audit firms or audit companies, relieving any of the following from all or specified requirements of Division 3 of Part 2M.4 (auditor independence):

(a) members of firms who are not registered company auditors;

(b) persons who have ceased to be:

(i) members of audit firms; or

(ii) directors of audit companies; or

(iii) professional employees of audit companies.

Note: For the criteria for making orders under this section, see section 342AC.

(2) The order may:

(a) be expressed to be subject to conditions; and

(b) be indefinite or limited to a specified period.

(3) An order under subsection (1) is a legislative instrument.

342AC Exemption orders - criteria for orders for non-auditor members etc.

To make an order under section 342AA or 342AB, ASIC must be satisfied that complying with the relevant requirements of Division 3 of Part 2M.4 would:

(a) make the financial report or other reports misleading; or

(b) be inappropriate in the circumstances; or

(c) impose unreasonable burdens.

Note 1: The heading to section 340 is replaced by the heading " Exemption orders - companies, registered schemes and disclosing entities ".

Note 2: The heading to section 341 is replaced by the heading " Exemption orders - class orders for companies, registered schemes and disclosing entities ".

Note 3: The heading to section 342 is replaced by the heading " Exemption orders - criteria for orders for companies, registered schemes and disclosing entities ".