Document ID: chunk:federal_register_of_legislation:C2012C00862:clause:2_103b
Version: federal_register_of_legislation:C2012C00862
Segment Type: clause
Provision Reference: sch 2 cl 103B
Character Range: 68962–70353

103B  Recapitalisation direction by APRA
 (1) APRA may give a general insurer a direction (a recapitalisation direction) that requires the insurer to increase the insurer's level of capital to the level specified in the direction if:
 (a) the insurer informs APRA that:
 (i) the insurer considers that the insurer is likely to become unable to meet the insurer's obligations; or
 (ii) the insurer is about to suspend payment; or
 (b) APRA considers that:
 (i) the insurer may become unable to meet the insurer's obligations; or
 (ii) the insurer may suspend payment; or
 (iii) it is likely that the insurer will be unable to carry on insurance business in Australia consistently with the interests of the insurer's policyholders; or
 (iv) it is likely that the insurer will be unable to carry on insurance business in Australia consistently with the stability of the financial system in Australia; or
 (c) the insurer:
 (i) becomes unable to meet the insurer's obligations; or
 (ii) suspends payment.
 (2) In deciding whether to give a recapitalisation direction, APRA must consult with the Australian Competition and Consumer Commission (the ACCC), unless the ACCC notifies APRA, in writing, that the ACCC does not wish to be consulted about:
 (a) the direction; or
 (b) a class of directions that includes the direction.
 (3) A recapitalisation direction is not a legislative instrument.