Document ID: chunk:federal_register_of_legislation:C2025C00173:section:92:p1
Version: federal_register_of_legislation:C2025C00173
Segment Type: section
Provision Reference: s 92 (pt 1/2)
Character Range: 116815–119692

92  Prudential standards

APRA may make prudential standards
 (1) Subject to subsection (8), APRA may, in writing, make standards (prudential standards), relating to prudential matters, that must be complied with by, or in relation to, private health insurers.
 (2) Prudential matters, in relation to a private health insurer, are matters relating to:
 (a) the conduct of the affairs of the insurer in such a way as:
 (i) to keep the insurer in a sound financial position; or
 (ii) not to cause or promote instability in the Australian private health insurance system; or
 (b) the conduct of the affairs of the insurer with integrity, prudence and professional skill.

The private health insurers to which a prudential standard applies
 (3) A prudential standard may be expressed to apply in relation to:
 (a) all private health insurers; or
 (b) a specified class of private health insurers only; or
 (c) one or more specified private health insurers only.

Prudential standards may provide for APRA to exercise powers and discretions
 (4) A prudential standard may provide for APRA to exercise powers and discretions under the standard, including but not limited to discretions to approve, impose, adjust or exclude specific prudential requirements in relation to a particular private health insurer.

Variation and revocation of prudential standards
 (5) APRA may, in writing, vary or revoke a prudential standard.

Prudential standards are legislative instruments (other than standards that apply to one or more specified insurers)
 (6) A prudential standard referred to in paragraph (3)(a) or (b), or an instrument varying or revoking such a prudential standard, is a legislative instrument. However, a prudential standard referred to in paragraph (3)(c), or an instrument varying or revoking such a prudential standard, is not a legislative instrument.
Note 1: Paragraph (3)(c) covers prudential standards that are expressed to apply in relation to one or more specified private health insurers only. Section 93 applies to these prudential standards.
Note 2: A decision to make, vary or revoke a prudential standard referred to in paragraph (3)(c) is reviewable under section 168.

Prudential standards may provide for a matter by adopting etc. material from another instrument
 (7) A prudential standard may provide for a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time, despite:
 (a) section 46AA of the Acts Interpretation Act 1901; and
 (b) section 14 of the Legislation Act 2003.

Prudential standards may not do certain things
 (8) To avoid doubt, prudential standards may not do the following:
 (a) create an offence or civil penalty;
 (b) provide powers of:
 (i) arrest or detention; or
 (ii) entry, search or seizure;
 (c) impose a tax;