Document ID: chunk:federal_register_of_legislation:F2023L01535:body:0:p17
Version: federal_register_of_legislation:F2023L01535
Segment Type: other
Provision Reference: 
Character Range: 44503–47550

supervising the operation of the Committee, as well as assessing its performance.

Composition and residency status of Committee members
5.             The Committee must comprise at least five members appointed by the Board. Those members must include:
       (a)          at least one director of the Board of the EFLIC;
       (b)          the Principal Executive Officer (PEO) appointed by the EFLIC for its Australian branch under either subsections 20(2) or 246(4) of the Life Insurance Act; and
       (c)          at least two independent members.
6.             A member cannot satisfy more than one of the composition requirements contained in subparagraphs 5(a), 5(b) and 5(c) of this Attachment (i.e. the director, PEO and independent members must all be separate individuals).
7.             At least two of the Committee members must be ordinarily resident in Australia, one being the PEO and the other an independent member.
8.             It should be noted that the definition of director contained in the Life Insurance Act, in relation to an EFLIC, is taken to refer to both members of the Committee and the directors of the EFLIC (except for certain provisions, notably sections 230B and 245 of the Life Insurance Act, where only Committee members are being referred to).

Application for a modified Committee composition
9.             APRA may, on application from an EFLIC, determine a modified Committee for the EFLIC where it can be demonstrated that it is appropriate to do so.
10.         In making this determination, APRA will take into account the following factors:
       (a)          the quantum of liabilities written by the EFLIC;
       (b)          the cost effectiveness or otherwise of establishing a Committee;
       (c)          any restrictions on the lines of business written by the EFLIC;
       (d)          whether these restrictions limit the number of policyholders of the EFLIC (for example, by targeting specific policyholder characteristics, such as age, nationality or geographical location); and
       (e)          whether the EFLIC has written any material amount of long tail business.
11.         The composition of any modified Committee would be determined on a case-by-case basis by APRA, but the possible modifications could take one or more of the following forms:
       (a)          a Committee with fewer than five members;
       (b)          replacing the director of the Board of the EFLIC as required by subparagraph 5(a) of this Attachment with the PEO; or
       (c)          a Committee with fewer than two independent members.

Appointment and removal of Committee members
12.         The power to appoint and remove members of the Committee resides with the Board.
13.         The Board must have appointed all members and formally constituted the Committee within seven days of receiving notification of registration.
14.         Each member of the Committee must be fit and proper for the role in accordance with the requirements for fitness and propriety as set out in