Financial Sector Legislation Amendment (Prudential Refinements and Other Measures) Act 2010 (82 of 2010)

Schedule 2   Amendment of the Insurance Act 1973

Part 1   Amendments

87   After subsection 104(1)

Insert:

(1A) Without limiting subsection (1), APRA may give a body corporate that is a general insurer or is an authorised NOHC a direction of a kind specified in subsection (3) if:

(a) APRA has reason to believe that:

(i) a subsidiary of the body corporate is, or is about to become, unable to meet the subsidiary's liabilities; or

(ii) there is, or there might be, a material risk to the security of the assets of a subsidiary of the body corporate; or

(iii) there has been, or there might be, a material deterioration in the financial condition of a subsidiary of the body corporate; or

(iv) a subsidiary of the body corporate is conducting the subsidiary's affairs in an improper or financially unsound way; or

(v) a subsidiary of the body corporate is conducting the subsidiary's affairs in a way that may cause or promote instability in the Australian financial system; and

(b) APRA considers that the direction is reasonably necessary for one or more prudential matters relating to the body corporate.