Document ID: chunk:federal_register_of_legislation:F2024L00262:reg:5
Version: federal_register_of_legislation:F2024L00262
Segment Type: reg
Provision Reference: reg 5
Character Range: 1910–3493

5  Fit and proper person
 (1) Under subsection 5(6) of the Act, the following matters are determined for the purposes of subparagraph 5(4)(b)(i) of the Act:
 (a) the honesty, integrity and reputation of the person; and
 (b) the competence and capability of the person, having regard to the degree of control or influence that the person will have over the Australian‑registered insurance company; and
 (c) whether the person is in a sound financial position; and
 (d) whether the person has any conflict of interest in relation to any matter that is likely to give rise to a material risk to ongoing operations of an Australian‑registered insurance company; and
 (e) whether there are reasonable grounds for suspecting the person has committed, or is at risk of committing, a financial crime; and
Examples:  financial crimes include crimes involving dishonesty, money laundering, bribery, corruption and terrorism financing.
 (f) if the person is a company—the company's prudential conduct and compliance with the prudential standards (as determined by APRA under the Insurance Act 1973 and the Life Insurance Act 1995); and
 (g) whether APRA's ability to effectively supervise the Australian‑registered insurance company is likely to be adversely affected; and
 (h) the potential for the person to be influenced by another person that is not a fit and proper person to be in a position of influence over the Australian‑registered insurance company.
 (2) Under subsection 5(6) of the Act, all relevant matters are determined for the purposes of subparagraph 5(4)(b)(ii) of the Act.