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.




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