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Taxation Laws Amendment Bill (No. 4) 2002

Part 6 Compliance provisions

Division 1 Compliance committees

47   Obligation of life company to have compliance committee

             (1)  A life company must at all times have a compliance committee.

             (2)  The committee may have whatever name the life company chooses.

48   Membership of compliance committee

             (1)  A member of a compliance committee must either be:

                     (a)  a director of the life company concerned; or

                     (b)  a person whose appointment is approved by ASIC.

             (2)  ASIC may approve of a person who is not a director of a life company being appointed a member of the company’s compliance committee if ASIC thinks that the person’s appointment is likely to promote the efficiency or effectiveness of the compliance committee’s operations.

49   Functions and powers of compliance committee

             (1)  A compliance committee must be given the following functions:

                     (a)  to assist the directors of the company to deal with consumer-related issues that arise in the course of the company’s operations;

                     (b)  to assist the directors of the company to ensure that the company at all times has a proper system of management controls that will enable the company to comply with this Act.

             (2)  A compliance committee may be given functions additional to, but not inconsistent with, those described in subsection (1).

             (3)  A life company must make such arrangements, and give its compliance committee such powers, as will enable the committee to obtain all information in the possession, or under the control, of the company that the committee needs for the performance of the functions described in paragraphs (1)(a) and (b).

             (4)  A member of a life company’s compliance committee has qualified privilege in respect of any report or statement about the company’s operations made for, by or on behalf of the committee, or a member of the committee, to the directors or the company.

             (5)  The privilege conferred by subsection (4) is in addition to any privilege conferred on a person by any other law.



 

Division 2 Monitoring life companies and life brokers

50   Purpose of Division

                   The purpose of this Division is to provide the means by which ASIC is able to monitor the extent of compliance by a life company or a life broker with this Act and directions given under this Act.

51   Definition

                   In this Division:

authorised person means a person appointed under section 52.

52   Appointment of authorised persons

             (1)  ASIC may appoint in writing:

                     (a)  a staff member of ASIC; or

                     (b)  an APRA staff member (within the meaning of the Australian Prudential Regulation Authority Act 1998 );

as an authorised person for the purposes of this Division.

             (2)  ASIC must issue to an authorised person an identity card, containing a photograph of the person.

             (3)  If a person stops being an authorised person, he or she must return his or her identity card to ASIC as soon as possible.

             (4)  A person who contravenes subsection (3) is guilty of an offence punishable, on conviction, of a fine not exceeding one penalty unit.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

53   Requirement to give information to ASIC

             (1)  For the purposes of this Act, ASIC may give a person a written notice requiring the person to give ASIC, at a reasonable time and place specified in the notice:

                     (a)  information in writing about any matter relating to the business of a specified life company or life broker, being information in the person’s possession or known to the person; or

                     (b)  a copy of any document relating to such a matter that is in the person’s possession or control.

             (2)  A person to whom a notice is given must not fail to comply with the notice.

Penalty:  30 penalty units.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

             (3)  A person is entitled to be paid reasonable compensation for making copies for the purpose of complying with a notice requiring that a copy of a document be given to ASIC.

54   Requirement to produce records

             (1)  For the purposes of this Act, ASIC may give a person a written notice requiring the person to produce to ASIC or a specified authorised person, at a reasonable time and place specified in the notice, any records in the person’s possession or control relating to the affairs of a specified life company or life broker.

             (2)  ASIC or the authorised person may inspect, take extracts from and make copies of any record produced under this section.

             (3)  A person to whom a notice is given must not fail to comply with the notice.

Penalty:  30 penalty units.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

             (4)  If:

                     (a)  a requirement is made under subsection (1); and

                     (b)  the information that constitutes the records to which the requirement relates is stored, in whole or in part, by electronic means;

the person to whom the requirement is directed is taken not to comply with the requirement unless the person produces all of the records in documentary form.

55   Self-incrimination

                   A person is not excused from giving information or producing records or a copy of a document under section 53 or 54 on the ground that the information or the production of the records or copy, as the case may be, might tend to incriminate the person or make the person liable to a penalty. However, if the information is given or the records or copy are produced by the person, the information or the records or copy, and any information or thing (including any document) obtained as a direct or indirect result of the giving of the information or the production of the records or copy, as the case may be, is not admissible in evidence against the person in any proceedings.

56   Access to premises

             (1)  For the purposes of this Act, an authorised person may enter, at any reasonable time, any premises at which the authorised person has reasonable cause to believe records relating to the affairs of a life company or life broker are kept.

             (2)  The authorised person may:

                     (a)  inspect any records found on the premises that the authorised person believes on reasonable grounds to relate to the affairs of the life company or life broker; and

                     (b)  take extracts from, or make copies of, such records.

             (3)  An authorised person may not enter premises under subsection (1) except with the consent of the occupier of the premises.

             (4)  An authorised person is not entitled to:

                     (a)  enter or remain on premises under this section; or

                     (b)  exercise any powers under subsection (2);

if the authorised person fails to produce his or her identity card for inspection when asked to do so by the occupier of the premises.