Document ID: chunk:federal_register_of_legislation:C2010C00224:clause:2_19
Version: federal_register_of_legislation:C2010C00224
Segment Type: clause
Provision Reference: sch 2 cl 19
Character Range: 104863–106407

19  Subsection 230B(1)
Repeal the subsection, substitute:

 (1) APRA may give a life company a direction of a kind specified in subsection (2) if APRA has reason to believe that:
 (a) the company has contravened a provision of this Act or the Financial Sector (Collection of Data) Act 2001; or
 (b) the company is likely to contravene this Act or the Financial Sector (Collection of Data) Act 2001, and such a contravention is likely to give rise to a prudential risk; or
 (c) the company has contravened a condition or direction under this Act or the Financial Sector (Collection of Data) Act 2001; or
 (d) the direction is necessary in the interests of policy owners or prospective policy owners of the company; or
 (e) the company is, or is about to become, unable to meet its liabilities; or
 (f) there is, or there might be, a material risk to the security of the company's assets; or
 (g) there has been, or there might be, a sudden material deterioration in the company's financial condition; or
 (h) the company is conducting its affairs in an improper or financially unsound way; or
 (i) the failure to issue a direction would materially prejudice the interests of policy owners or prospective policy owners of the company; or
 (j) the company is conducting its affairs in a way that may cause or promote instability in the Australian financial system.

 (1A) The direction must:
 (a) be given by notice in writing to the company; and
 (b) specify the ground referred to in subsection (1) as a result of which the direction is given.