Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:1_15:p1
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 1/2)
Character Range: 14067–16751

15  When APRA may revoke an authorisation

 (1) APRA may revoke (in writing) a general insurer's authorisation under section 12 if APRA is satisfied that the insurer has no liabilities in respect of insurance business carried on by it in Australia and that:
 (a) the insurer has failed to comply with:
 (i) a requirement of this Act (including the requirement to comply with the prudential standards) or of an instrument made for the purposes of this Act; or
 (ii) a requirement of the Financial Sector (Collection of Data) Act 2001; or
 (iii) a direction to the insurer under this Act; or
 (iv) a condition of the insurer's authorisation; or
 (b) it would be contrary to the national interest for the authorisation to remain in force; or
 (c) the insurer has failed to pay:
 (i) an amount of levy or late penalty to which the Financial Institutions Supervisory Levies Collection Act 1998 applies; or
 (ii) an amount of charge fixed under section 51 of the Australian Prudential Regulation Authority Act 1998; or
 (d) the insurer is insolvent and is unlikely to return to solvency within a reasonable period of time; or
 (e) the insurer has inadequate capital and is unlikely to have adequate capital within a reasonable period of time; or
 (f) the insurer has ceased to carry on insurance business in Australia; or
 (g) the insurer has not, within the period of 12 months after it was granted an authority under this Part, carried on insurance business in Australia.

 (2) However, APRA may only revoke a general insurer's authorisation under this section if APRA has the Treasurer's written agreement to do so.

 (3) Before revoking a general insurer's authorisation, APRA must give written notice to the insurer advising it that:
 (a) APRA is considering revoking the authorisation for the reasons specified; and
 (b) the insurer may make submissions about the revocation to APRA, in accordance with the notice, by a specified date (which must be at least 90 days after the notice is given).

 (3A) To avoid doubt, APRA may give a notice under subsection (3) to a general insurer even if, at the time the notice is given, APRA is not satisfied that the insurer has no liabilities in respect of insurance business carried on by it in Australia.

 (3B) If APRA gives a notice under subsection (3) to a general insurer, APRA must not revoke the insurer's authorisation until after the date specified in the notice, and after consideration of any submission, as mentioned in paragraph (3)(b).

 (4) APRA may, with the Treasurer's written agreement, decide that subsection (3) does not apply if APRA is satisfied that complying with that subsection could result in a delay in revocation