Document ID: chunk:federal_register_of_legislation:F2019L00398:schedule:1:p14
Version: federal_register_of_legislation:F2019L00398
Segment Type: schedule
Provision Reference: sch 1 (pt 14/18)
Character Range: 38108–41303

93‑20(2) or subsection 93‑20(4) of the PHI Act or otherwise.

       (2)                   Prior to the transfer date, each party to the arrangement must, except to the extent provided for in the Act, procure any amendment of its constitution and any of its rules required for the arrangement to take place.
       Note: The Act contains relevant provisions in section 34.
       (3)                   Prior to the transfer date, each party to the arrangement must take all steps required under any other law of the Commonwealth, a State or a Territory required for the arrangement to take place.
14.                  Criteria for approving or refusing a merger or acquisition
       (1)                   For the purposes of paragraph 33(3)(b) of the Act, a proposed distribution of assets and liabilities between receiving funds under a proposed arrangement is not fairly distributed if the proposed distribution will cause, or may contribute to causing, a transferee insurer to be in breach of:
           (a)          the Act or the PHI Act; or
           (b)          any Regulations; or
           (c)          any of the Rules; or
           (d)          a solvency direction that applies to the private health insurer; or
           (e)          a capital adequacy direction that applies to the private health insurer,
       at one or more of the following times:
           (f)           the transfer date; or
           (g)          any time within the first 36 months after the transfer date; or
           (h)          any time within the foreseeable future of operation of the restructuring funds beyond 36 months after the transfer date.
       (2)                   Subrule (1) is not an exhaustive statement of criteria for refusing an application under section 33 of the Act and does not prevent APRA from taking into account considerations other than those referred to in subrule (1) to form a view that a proposed distribution between receiving funds of assets and liabilities is fairly distributed for the purposes of paragraph 33(3)(b) of the Act.
       (3)                   When considering whether a distribution between receiving funds pursuant to a restructure is fairly distributed for the purposes of paragraph 33(3)(b) of the Act, the relevant matters APRA may take into account include, but are not limited to, the matters referred to in subrule (1).
       (4)                  In considering an application under subsection 33(2) of the Act, APRA must take into account statements made in:
           (a)          the application; and
           (b)          the arrangement; and
           (c)          the certifications of compliance; and
           (d)          the actuaries' reports,
       but is not bound by those statements and may make its own inquiries which may include, without limitation, obtaining other actuarial advice.

    14A    Additional criteria for approving or refusing a merger or acquisition

       (1)                   For the purposes of subsection 33(5), additional criteria for refusing to approve applications under section 33 are specified in this rule.
       (2)                   If the application is in respect of an