Document ID: chunk:federal_register_of_legislation:C2018A00010:clause:3_84:p1
Version: federal_register_of_legislation:C2018A00010
Segment Type: clause
Provision Reference: sch 3 cl 84 (pt 1/2)
Character Range: 357974–360549

84  Subsection 230B(1AA)
Repeal the subsection, substitute:
 (1AA) APRA may give a body corporate that is a life company or is a registered NOHC a direction of a kind specified in subsection (2) if APRA has reason to believe that:
 (a) a subsidiary of the body corporate has contravened a provision of this Act or the Financial Sector (Collection of Data) Act 2001; or
 (b) a subsidiary of the body corporate is likely to contravene this Act or the Financial Sector (Collection of Data) Act 2001; or
 (c) the direction is in respect of a subsidiary of the body corporate and is necessary in the interests of:
 (i) if the body corporate is a life company—policy owners or prospective policy owners of the life company; or
 (ii) if the body corporate is a registered NOHC—policy owners or prospective policy owners of any life company that is a subsidiary of the NOHC; or
 (d) a subsidiary of the body corporate is, or is about to become, unable to meet the subsidiary's liabilities; or
 (e) there is, or there might be, a material risk to the security of the assets of a subsidiary of the body corporate; or
 (f) there has been, or there might be, a material deterioration in the financial condition of a subsidiary of the body corporate; or
 (g) a subsidiary of the body corporate is conducting the subsidiary's affairs in an improper or financially unsound way; or
 (h) a subsidiary of the body corporate is conducting the subsidiary's affairs in a way that may cause or promote instability in the Australian financial system; or
 (j) a subsidiary of the body corporate is conducting the subsidiary's affairs in a way that may cause it to be unable to continue to supply services to:
 (i) if the body corporate is a life company—the life company; or
 (ii) if the body corporate is a registered NOHC—any life company that is a subsidiary of the NOHC; or
 (k) the direction is in respect of a subsidiary of the body corporate and the failure to issue a direction would materially prejudice the interests of:
 (i) if the body corporate is a life company—policy owners or prospective policy owners of the life company; or
 (ii) if the body corporate is a registered NOHC—policy owners or prospective policy owners of any life company that is a subsidiary of the NOHC.
 (1AB) However, APRA can only make a direction as a result of a ground referred to in paragraph (1AA)(a), (b), (d), (e), (f), (g) or (j) if APRA considers that the direction is reasonably necessary for one or more prudential matters relating to the body corporate.
 (1AC) APRA may give a body corporate that is