Document ID: chunk:federal_register_of_legislation:F2023L01535:body:0:p18
Version: federal_register_of_legislation:F2023L01535
Segment Type: other
Provision Reference: 
Character Range: 47298–50145

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 CPS 520.
15.         The Board must ensure that the Committee as a whole possesses the necessary skills and expertise to ensure that the EFLIC complies with the requirements in, or imposed under, the Life Insurance Act, and to discharge the duties and responsibilities of the Committee provided for in this Prudential Standard.
16.         The Committee must have a policy for dealing with conflicts of interest.
17.         Notwithstanding the Board's power to appoint and remove members, APRA may, under section 230B of the Life Insurance Act, direct an EFLIC to remove a member of the Committee.
18.         While membership of the Committee is the responsibility of the Board, the powers to appoint and remove members of the Committee must not be used in a manner that impedes, discourages or otherwise hinders the Committee from discharging its duties and responsibilities. Examples that would be cause for concern by APRA would be an excessive turnover of members, or the removal of members at inappropriate times (for example at critical reporting periods). If requested to do so by APRA, an EFLIC must, within a time stipulated by APRA (which must not be unreasonable), provide a written report to APRA responding to any queries APRA has regarding the removal of members.

Processes of the Committee
19.         At least three members of the Committee are required to be present at a meeting of the Committee to form a quorum. The PEO, and at least one independent member who is ordinarily resident in Australia, must be amongst the three members present.
20.         The chairperson of the Committee must be a non-executive member.
21.         Resolutions can be passed only by a majority with the chairperson having a casting vote.
22.         The Committee must meet as often as required to discharge its duties and responsibilities, although APRA would expect the Committee to meet on at least a quarterly basis. Members, and individuals who may be needed to address the Committee, must be given reasonable notice of pending meetings.
23.         The Committee must ensure that the Appointed Actuary is given reasonable notice of any meeting of the Committee at which matters are to be considered that relate to the functions and duties of the actuary, including matters:
       (a)          that relate to, or may affect:
(i)                   the solvency of the company; or
(ii)                   the adequacy of the capital of the company; or
       (b)          that relate to advice given by the Appointed Actuary to the directors; or
       (c)          that concern a matter