Part 8Enforcement, liability, and appeals
Indemnities or insurance for directors, employees, and auditors of issuers, offerors, and licensees
529Prohibition on indemnity or insurance for auditors of issuers, offerors, or licensees
A specified person, or a related body corporate, must not indemnify, or directly or indirectly effect insurance for, an auditor of the specified person, or an auditor engaged by the specified person, in respect of—
- liability, in connection with conduct regulated by the financial markets legislation, for any contravention, involvement in a contravention, negligence, breach of duty, or breach of trust in his or her capacity as an auditor; or
- costs incurred by that auditor in defending or settling any claim or proceeding relating to that liability.
However, a specified person, or a related body corporate, may indemnify an auditor referred to in subsection (1) for any costs incurred by him or her in defending or settling a proceeding that relates to liability of a kind referred to in subsection (1)(a) if—
- judgment is given in his or her favour or if he or she is acquitted; or
- the proceeding is discontinued.
An indemnity given in breach of this section is void.