Document ID: chunk:federal_register_of_legislation:F2023L01535:body:0:p10
Version: federal_register_of_legislation:F2023L01535
Segment Type: other
Provision Reference: 
Character Range: 25003–28126

will be responsible for overseeing the Australian branch operation.
47.         For a foreign ADI or Category C insurer, there must also be a senior manager[8] in Australia responsible for the local operation who is ordinarily resident in Australia. The senior management must be available to meet with APRA on request.
48.         A Category C insurer that appoints a corporate agent as its agent in Australia must additionally ensure that:
       (a)          the Board of the corporate agent has a minimum of three directors at all times; and
       (b)          a majority of the directors of the Board of the corporate agent are ordinarily resident in Australia.[9]
49.         The ultimate responsibility for the safety and soundness of an EFLIC resides with its Board. An EFLIC must establish a Compliance Committee[10] to assist the Board in meeting its responsibilities under the Life Insurance Act. The requirements for the composition of the Compliance Committee are detailed in Attachment B. The senior management of an EFLIC must be available to meet with APRA on request.
50.         The senior officer outside Australia or Compliance Committee of an EFLIC, as relevant, must provide the external auditor of the APRA-regulated institution with the opportunity to raise matters directly with the senior officer outside Australia or the Compliance Committee, as relevant.

    C.           Audit arrangements

Board Audit Committee
51.         An APRA-regulated institution (excluding foreign ADIs and Category C insurers but including EFLICs) must have a Board Audit Committee, which assists the Board by providing an objective non-executive review of the effectiveness of the institution's financial reporting and risk management framework.
52.         The Board Audit Committee must have sufficient powers to enable it to obtain all information necessary for the performance of its functions.
53.         The Board Audit Committee must have at least three members. All members of the Committee must be non-executive directors of the APRA-regulated institution. A majority of the members of the Committee must be independent.
54.         The chairperson of the Board Audit Committee must be an independent director of the APRA-regulated institution.
55.         The chairperson of the Board may be a member of the Board Audit Committee, but may not chair the Committee.
56.         The Board Audit Committee must have a written charter that outlines its roles, responsibilities and terms of operation. The responsibilities of the Committee must include oversight of:
       (a)          all APRA statutory reporting requirements;
       (b)          other financial reporting requirements;
       (c)          professional accounting requirements;
       (d)          internal and external audit; and
       (e)          the appointment and removal of that institution's auditor and Head of Internal Audit.
57.         The Board Audit Committee is required to provide prior endorsement for the appointment or removal of the institution's auditor and Head of Internal Audit. If the auditor or Head of Internal