Document ID: chunk:federal_register_of_legislation:F2019L00648:body:0:p9
Version: federal_register_of_legislation:F2019L00648
Segment Type: other
Provision Reference: 
Character Range: 21818–24886

trust for the Category C insurer).

26.         Nothing in paragraph 25(a)(iii) precludes a Category C insurer from requiring a co-signatory, who need not reside in Australia, to also authorise a direction to the custodian permitting or requiring disposal of an asset. However, where there is a co-signatory, the requirement in paragraph 25(a)(iii) will be taken to be met only if:

       (a)          the agent in Australia maintains control of the assets in Australia by being the only entity with authority to deal with the custodian directly;

       (b)          the requirement for a co-signatory is an arrangement agreed upon between the Category C insurer and the agent in Australia;

       (c)          the external custody agreement recognises only the authority of the agent in Australia to give directions to the custodian; and

       (d)          the agent in Australia does not delegate to the co-signatory its authority to give directions to the custodian; and

       (e)          the co-signatory:

          (i)            is appointed by the Category C insurer;

          (ii)         is not a disqualified person as defined in section 25 of the Act; and

          (iii)       meets the fitness and propriety criteria for responsible persons under Prudential Standard CPS 520 Fit and Proper (CPS 520).

27.         Paragraph 25 does not apply to the following assets of a Category C insurer:

       (a)          real property in Australia;

       (b)          premiums receivable due to the Category C insurer provided that any premiums receivable outstanding for more than six months from the date when the premiums receivable became due and payable is excluded from being as asset in Australia; and

       (c)          cash held in the Category C insurer's bank account in Australia provided that any withdrawal from the bank account requires authorisation by the Category C insurer's agent in Australia.

28.         For the purposes of paragraph 27(c), 'bank account in Australia' means a bank account maintained with an authorised deposit-taking institution[15] in Australia under the terms of which deposits are:

       (a)          at call; or

       (b)          term deposits of no more than six months duration.

29.         For the purposes of paragraphs 25 to 28 and 30 to 36, an agent in Australia may delegate authority to carry out acts for a Category C insurer (other than holding property on trust for a Category C insurer under paragraph 25(b)) to one or more persons (delegates) provided that every delegate:

       (a)          is an individual who resides in Australia;

       (b)          is not a disqualified person as defined in section 25 of the Act; and

       (c)          meets the fitness and propriety criteria for responsible persons under CPS 520.[16]

Any reference in this Prudential Standard to authorisation by an agent in Australia includes authorisation by a delegate.

Repatriation of assets

30.         Any declared repatriation of net assets in Australia by a Category C