Document ID: chunk:federal_register_of_legislation:C2025C00157:section:104:p1
Version: federal_register_of_legislation:C2025C00157
Segment Type: section
Provision Reference: s 104 (pt 1/6)
Character Range: 406832–409516

104  APRA may give directions in certain circumstances

Basis on which directions may be given
 (1) APRA may give a body corporate that is a general insurer or an authorised NOHC a direction of a kind specified in subsection (3) if APRA has reason to believe that:
 (a) the body corporate has contravened a provision of this Act, regulations made under this Act, prudential standards, or the Financial Sector (Collection of Data) Act 2001; or
 (b) the body corporate is likely to contravene this Act, regulations made under this Act, prudential standards, or the Financial Sector (Collection of Data) Act 2001, and the direction is reasonably necessary for one or more prudential matters relating to the body corporate; or
 (c) the body corporate has contravened a condition or direction under this Act or the Financial Sector (Collection of Data) Act 2001; or
 (d) the direction is necessary in the interests of:
 (i) if the body corporate is a general insurer—policyholders of the general insurer; or
 (ii) if the body corporate is an authorised NOHC—policyholders of any general insurer that is a subsidiary of the NOHC; or
 (e) the body corporate is, or is about to become, unable to meet its liabilities; or
 (f) there is, or there might be, a material risk to the security of the body corporate's assets; or
 (g) there has been, or there might be, a material deterioration in the body corporate's financial condition; or
 (h) the body corporate is conducting its affairs in an improper or financially unsound way; or
 (i) the failure to issue a direction would materially prejudice the interests of:
 (i) if the body corporate is a general insurer—policyholders of the general insurer; or
 (ii) if the body corporate is an authorised NOHC—policyholders of any general insurer that is a subsidiary of the NOHC; or
 (j) the body corporate is conducting its affairs in a way that may cause or promote instability in the Australian financial system.
 (1A) APRA may give a body corporate that is a general insurer or is an authorised NOHC a direction of a kind specified in subsection (3) if APRA has reason to believe that:
 (a) a subsidiary of the body corporate has contravened a provision of this Act, regulations made under this Act, prudential standards, or the Financial Sector (Collection of Data) Act 2001; or
 (b) a subsidiary of the body corporate is likely to contravene this Act, regulations made under this Act, prudential standards, 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 general insurer—policyholders of the