Document ID: chunk:federal_register_of_legislation:C2012C00862:clause:2_87
Version: federal_register_of_legislation:C2012C00862
Segment Type: clause
Provision Reference: sch 2 cl 87
Character Range: 83037–84083

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.