Document ID: chunk:federal_register_of_legislation:C2025C00157:section:49a:p2
Version: federal_register_of_legislation:C2025C00157
Segment Type: section
Provision Reference: s 49A (pt 2/3)
Character Range: 136052–138698

See subsection 13.3(3) of the Criminal Code.

Matters requiring notice as soon as practicable
 (6) If the person has reasonable grounds for believing:
 (a) any of the following:
 (i) the insurer, NOHC or subsidiary has failed or will fail to comply with the prudential standards;
 (ii) in the case of an insurer—the insurer has failed or will fail to comply with a condition of its authorisation under section 12;
 (iii) in the case of an authorised NOHC—the NOHC has failed or will fail to comply with a condition of its authorisation under section 18;
 (iv) the insurer, NOHC or subsidiary has failed or will fail to comply with a requirement or direction under this Act, a requirement under the Financial Sector (Collection of Data) Act 2001 or a requirement of the Financial Accountability Regime Act 2023; and
 (b) that the failure is or will be significant (see subsection (7));
the person must give APRA a written report about the failure as soon as practicable, and in any case no later than 10 business days.
 (7) For the purposes of paragraph (6)(b), a failure to comply is or will be significant if the failure to comply is or will be significant having regard to any one or more of the following:
 (a) the number or frequency of similar failures;
 (b) the impact the failure has or will have on the insurer's, NOHC's or subsidiary's ability to conduct its business;
 (c) the extent to which the failure indicates that the insurer's, NOHC's or subsidiary's arrangements to ensure compliance with this Act or with the prudential standards might be inadequate;
 (d) the actual or potential financial loss arising or that will arise from the failure:
 (i) in the case of an insurer—to the policy holders of the insurer; or
 (ii) to the insurer, NOHC or subsidiary;
 (e) any matters prescribed by the regulations for the purposes of this paragraph.

Offences in relation to matters requiring notice as soon as practicable
 (8) A person commits an offence if the person contravenes subsection (6).
Penalty: Imprisonment for 6 months, or 100 penalty units, or both.
 (9) A person commits an offence if the person contravenes subsection (6). This is an offence of strict liability.
Penalty: 60 penalty units.
Note: For strict liability, see section 6.1 of the Criminal Code.

Defence if failure already notified
 (10) Subsections (8) and (9) do not apply to a person in relation to a failure to comply referred to in subsection (6) if:
 (a) a director or senior manager of the insurer, NOHC or subsidiary informs the person that the insurer, NOHC or subsidiary has informed APRA in writing of the failure; and
 (b) the person has no reason to