Settlement Agents Act 1981

Every person who carries on business as a settlement agent during the whole or any part of a year shall cause his trust accounts for that year, or part of a year, as the case may be, to be audited by an auditor duly qualified or approved under this Division.

The auditor shall conduct the audit in accordance with accepted auditing practice, including selective testing when the auditor considers it appropriate and in accordance with such other requirements as are determined by the Commissioner.

The auditor shall within 3 months after the end of each year —

deliver to the Commissioner a report of the result of the audit, verified by statutory declaration of the auditor, in an approved form; and

deliver a copy of the report so verified to the settlement agent.

The settlement agent shall retain the copy of the report and produce it on demand pursuant to section 61(3).

The Commissioner may, in circumstances he or she considers appropriate, extend the time limit for lodging reports.

The auditor shall deliver an interim report to the Commissioner if at any time he discovers any irregularity in the trust accounts of the settlement agent or discovers any other matter in respect of those accounts which the auditor considers should be reported to the Commissioner and he shall verify the interim report by statutory declaration and deliver a copy of the report so verified to the settlement agent.

The Commissioner may require the auditor to furnish further information or carry out a further audit at any time, and the auditor shall comply with that requirement, and the cost of so doing shall be paid by the settlement agent if the Commissioner so directs but otherwise shall be paid by the Commissioner.

Apart from the annual audit and any interim audit provided for in this section, there shall be —

a quarterly audit in respect of the trust accounts of a settlement agent for the first 3 months during which he carries on business as such after the appointed day, and such quarterly audit shall be conducted in accordance with such provisions of this Division in respect of the annual audit as are capable of being applied to the quarterly audit, and the auditor shall within 2 months after the end of the first 3 months deliver to the Commissioner a report of the result of such quarterly audit; and

where for any reason the triennial certificate of an agent ceases to have effect under this Act, within the period of 3 months thereafter, a termination audit of the settlement agent’s trust account, and the termination audit shall be arranged and conducted in accordance with such provisions of this Division in respect of the annual audit as are capable of being applied to the termination audit, and the auditor shall within 2 months after the end of that 3 month period deliver to the Commissioner a report of such termination audit.

The Commissioner may, if the Commissioner thinks fit, waive in respect of a settlement agent’s trust accounts the requirement of a quarterly audit mentioned in subsection (8).