Financial Sector Legislation Amendment (Prudential Refinements and Other Measures) Act 2010 (82 of 2010)

Schedule 4   Amendment of other Acts

Part 1   Amendments

Financial Sector (Collection of Data) Act 2001

20   After Division 2 of Part 3

Insert:

Division 2A - Auditing of documents

17A Application of this Division

(1) This Division applies if a financial sector entity is required to appoint an auditor under reporting standards that relate to the collection of information that APRA requires:

(a) to perform APRA's functions under:

(i) Division 2AA of Part II of theBanking Act 1959; or

(ii) Part VC of theInsurance Act 1973; or

(b) to assist a financial sector agency to perform its functions or exercise its powers.

(2) Also, this Division applies if a financial sector entity is required to appoint an auditor under reporting standards that APRA issued on the direction of the Minister.

17B Auditor's functions and duties

(1) The auditor must perform the functions and duties of an auditor that are set out in the reporting standards.

(2) The auditor must comply with the reporting standards in performing their functions and duties.

(3) The financial sector entity must make any arrangements that are necessary to enable the auditor to perform their functions and duties.

17C Auditor must notify APRA of attempts to unduly influence etc. the auditor

(1) If the auditor is aware of circumstances that amount to:

(a) an attempt by any person to unduly influence, coerce, manipulate or mislead the auditor in connection with the performance of the auditor's functions or duties; or

(b) an attempt by any person to otherwise interfere with the performance of the auditor's functions or duties;

the auditor must notify APRA in writing of those circumstances as soon as practicable, and in any case within 28 days, after the auditor becomes aware of those circumstances.

(2) The auditor commits an offence if the auditor contravenes subsection (1).

Penalty: Imprisonment for 12 months or 50 penalty units, or both.

17D Giving false or misleading information to auditor

Offence - person knows the information is false or misleading etc.

(1) A person commits an offence if:

(a) the person is:

(i) a financial sector entity; or

(ii) an employee, officer or trustee of a financial sector entity; and

(b) the person gives information, or allows information to be given, to an auditor of the financial sector entity; and

(c) the information relates to the affairs of the financial sector entity; and

(d) the person knows that the information:

(i) is false or misleading in a material particular; or

(ii) is missing something that makes the information misleading in a material respect.

Penalty: Imprisonment for 5 years or 200 penalty units, or both.

Offence - person fails to ensure the information is not false or misleading etc.

(2) A person commits an offence if:

(a) the person is an employee or officer of a financial sector entity; and

(b) the person gives information, or allows information to be given, to an auditor of the financial sector entity; and

(c) the information relates to the affairs of the financial sector entity; and

(d) the information:

(i) is false or misleading in a material particular; or

(ii) is missing something that makes the information misleading in a material respect; and

(e) the person did not take reasonable steps to ensure that the information:

(i) was not false or misleading in a material particular; or

(ii) was not missing something that makes the information misleading in a material respect.

Penalty: Imprisonment for 2 years or 100 penalty units, or both.

Determining whether information is false or misleading

(3) If information is given to the auditor in response to a question asked by the auditor, the information and the question must be considered together in determining whether the information is false or misleading.