Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:1_27
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 1 cl 27
Character Range: 38398–40368

27  APRA may remove a director or senior manager of a general insurer or authorised NOHC

 (1) This section applies to a person who is:
 (a) a director or senior manager of a general insurer (not including a foreign general insurer); or
 (b) a senior manager, or agent in Australia for the purpose of section 118, of a foreign general insurer; or
 (c) a director or senior manager of an authorised NOHC.

 (2) APRA may direct (in writing) that the general insurer or authorised NOHC remove the person from the position if APRA is satisfied that the person:
 (a) is a disqualified person; or
 (b) does not meet one or more of the criteria for fitness and propriety set out in the prudential standards.

 (3) Before directing a general insurer or authorised NOHC to remove a person, APRA must give written notice to:
 (a) the person; and
 (b) the insurer or NOHC;
giving each of them a reasonable opportunity to make submissions on the matter.

 (4) A direction takes effect on the day specified in it, which must be at least 7 days after it is made.

 (5) If APRA directs a general insurer or authorised NOHC to remove a person, APRA must give a copy of the direction to the person and insurer or NOHC.

 (6) Part VI applies to a direction made by APRA under this section.

 (7) A general insurer commits an offence if:
 (a) the insurer does, or fails to do, an act; and
 (b) by doing or failing to do the act, the insurer fails to comply with a direction under this section.

Maximum penalty: 60 penalty units.

 (8) An offence against subsection (7) is an offence of strict liability.

Note 1: For strict liability, see section 6.1 of the Criminal Code.

Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 3: If a body corporate is convicted of an offence against this section, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above.

Division 6—Other matters