Document ID: chunk:federal_register_of_legislation:C2010C00224:clause:2_104:p1
Version: federal_register_of_legislation:C2010C00224
Segment Type: clause
Provision Reference: sch 2 cl 104 (pt 1/3)
Character Range: 90469–93114

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 such a contravention is likely to give rise to a prudential risk; 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 sudden 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.

Requirements for direction

 (2) The direction must:
 (a) be given by notice in writing to the body corporate; and
 (b) specify the ground referred to in subsection (1) as a result of which the direction is given.

Contents of directions

 (3) The kinds of direction that the body corporate may be given are directions to do, or to cause a body corporate that is its subsidiary to do, any one or more of the following:
 (a) to comply with the whole or a part of this Act, regulations made under this Act, prudential standards, or the Financial Sector (Collection of Data) Act 2001;
 (b) to comply with a condition or direction referred to in paragraph (1)(c);
 (c) to order an audit of the affairs of the body corporate,