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

Schedule 3   Amendment of the Life Insurance Act 1995

Part 1   Amendments

11   Section 83

Repeal the section, substitute:

83 Requirement for life company to have an auditor

(1) A life company must have an auditor appointed by the life company (the principal auditor ) to perform the functions of an auditor set out in the prudential standards.

(2) Within 6 weeks after a person stops being the principal auditor of a life company, the life company must appoint another person to be the principal auditor.

(3) The principal auditor must perform the functions of an auditor set out in:

(a) the prudential standards; and

(b) the reporting standards determined by APRA under theFinancial Sector (Collection of Data) Act 2001.

83A Additional auditors

(1) APRA may, by written notice, require a life company to appoint a person who is specified in the notice to be an auditor for a purpose that is specified in the notice.

Example: APRA may require a life company to appoint an auditor who has specialist qualifications or experience to perform a special purpose audit.

(2) The specified person may be:

(a) the principal auditor; or

(b) another auditor.

83B Compliance with prudential standards

An auditor appointed by a life company must comply with the prudential standards in performing his or her duties or exercising his or her powers.