Document ID: chunk:federal_register_of_legislation:C2010C00544:clause:1_132a:p1
Version: federal_register_of_legislation:C2010C00544
Segment Type: clause
Provision Reference: sch 1 cl 132A (pt 1/2)
Character Range: 113606–116273

132A  Requirement to notify APRA of certain matters

Matters requiring immediate notice

 (1) If:
 (a) a life company becomes aware that the life company has breached or will breach a provision of this Act; and
 (b) the provision relates to financial obligations the life company has to the owners of policies issued by it or to the life company's minimum capital requirements;
the life company must immediately notify APRA in writing of the breach.

Offence in relation to matters requiring immediate notice

 (2) A life company commits an offence if the life company contravenes subsection (1).

Penalty: 200 penalty units.

Defence if matter already notified

 (3) Subsection (2) does not apply to a life company in relation to a breach referred to in subsection (1) if:
 (a) the life company becomes aware of the breach because it is informed of it by the auditor or appointed actuary of the life company; and
 (b) the auditor or appointed actuary informs the life company that the auditor or actuary has notified APRA in writing of the breach; and
 (c) the life company has no reason to disbelieve the auditor or appointed actuary.

Note 1: Auditors and appointed actuaries must give APRA certain information under sections 88 and 98, and may give APRA information under sections 88A and 98A.

Note 2: The defendant bears an evidential burden in relation to the matters in subsection (3). See subsection 13.3(3) of the Criminal Code.

Matters requiring notice as soon as practicable

 (4) If a life company becomes aware:
 (a) both:
 (i) that the life company has breached or will breach a provision of this Act (other than a provision to which subsection (1) applies); and
 (ii) that the breach is or will be significant (see subsection (5)); or
 (b) of a matter that materially and adversely affects the life company's financial position;
the life company must give APRA a written report about the breach or matter as soon as practicable, and in any case no later than 10 business days, after becoming aware of the breach or matter.

 (5) For the purposes of subparagraph (4)(a)(ii), a breach of a provision is or will be significant if the breach is or will be significant having regard to any one or more of the following:
 (a) the number or frequency of similar breaches;
 (b) the impact the breach has or will have on the life company's ability to conduct its life insurance business;
 (c) the extent to which the breach indicates that the life company's arrangements to ensure compliance with this Act or with the prudential standards might be inadequate;
 (d) the actual or potential financial loss arising or that will arise from the breach:
 (i) to