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reg 18

Suspension or removal of scheme entities

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Part 3Scheme entities
Division 3Related provisions

18 Suspension or removal of scheme entities

(1)

The appointing authority may, by notice in writing to a scheme entity, suspend or terminate the appointment of the scheme entity under this

Part.

(2)

An appointing authority may not take action against a scheme entity under subregulation (1) unless the appointing authority is satisfied, on the basis of an audit that has been undertaken under regulation 11(1)(a)(ii), that the scheme entity has, in the performance of its functions, displayed incompetence, misconduct or incapacity to act under these regulations.

(3)

Before suspending or terminating the appointment of a scheme entity under this regulation, the appointing authority must—

(a)

advise the scheme entity in writing that action under this regulation to suspend or terminate the appointment is being contemplated and the basis on which this course of action is being considered; and

(b)

provide the scheme entity with a reasonable opportunity to make submissions and consider the submissions received.

(4)

Nothing in this regulation limits the operation of regulation 9.

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