Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:1_49m
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 1 cl 49M
Character Range: 71724–73235

49M  Direction to provide amount for liabilities

 (1) APRA may give a written direction to a general insurer to provide, or further provide, in its accounts for the purposes of this Act (including the prudential standards):
 (a) a specified amount; or
 (b) an amount determined in a specified way;
in respect of its liabilities.

 (2) However, APRA may only give a direction if APRA has the Treasurer's written agreement to do so.

 (3) The direction must specify:
 (a) a period for providing the amount in its accounts (which must be at least 21 days after the direction is given to the insurer); and
 (b) whether it applies on an interim basis or otherwise.

 (4) APRA may vary or revoke the direction, by giving written notice to the general insurer, if:
 (a) APRA considers that the direction should be varied or is no longer necessary; and
 (b) the Treasurer gives his or her written agreement.
APRA may do so on its own initiative or on the application of the insurer.

 (5) If a general insurer applies for a direction to be varied or revoked, APRA must:
 (a) either vary or revoke, or refuse to vary or revoke, the direction; and
 (b) give the person written notice of APRA's decision about varying or revoking the direction.

 (6) A direction ceases to have effect on the commencement of the winding up of the general insurer concerned.

 (7) To avoid doubt, this section has effect for the purposes of this Division, the prudential standards and the Financial Sector (Collection of Data) Act 2001.