Document ID: chunk:federal_register_of_legislation:F2018L01390:body:0:p8
Version: federal_register_of_legislation:F2018L01390
Segment Type: other
Provision Reference: 
Character Range: 19449–22507

Insurance Act, the responsibilities set out in paragraph 27, when exercised for a corporate agent in respect of an APRA-regulated institution, are senior management responsibilities (except when carried out by a director of the corporate agent).

Criteria to determine if a responsible person is fit and proper
29.         An APRA-regulated institution must clearly define and document the competencies required for each responsible person position.
30.         For the purposes of the Prudential Acts and the PHIPS Act and for the purposes of determining whether a person is fit and proper to hold a responsible person position, the criteria are whether: [16]
       (a)          it would be prudent for an APRA-regulated institution to conclude that the person possesses the competence, character, diligence, honesty, integrity and judgement to perform properly the duties of the responsible person position;
       (b)          the person is not disqualified under an applicable Prudential Act or the PHIPS Act from holding the position;
       (c)          the person either:
(i)                   has no conflict of interest in performing the duties of the responsible person position; or
(ii)                   if the person has a conflict of interest, it would be prudent for an APRA-regulated institution to conclude that the conflict will not create a material risk that the person will fail to perform properly the duties of the position; and
       (d)          for a senior manager of a corporate agent of a general insurer, the person is ordinarily resident in Australia.

Additional criteria applying to auditors[17]
31.         The criteria for fitness and propriety of an auditor for the purposes of the Prudential Acts are those contained in paragraphs 30 and 32.[18]
32.         The additional criteria which must be met for an auditor to be fit and proper are that the person:
       (a)          is a registered company auditor under the Corporations Act;
       (b)          has a minimum of five years' relevant experience in the audit of APRA-regulated institutions in the industry within which they are working;
       (c)          is neither the Chief Executive Officer (CEO) nor a director of the APRA-regulated institution nor of a related body corporate;
       (d)          has experience relating to ADIs, general insurers, life companies or private health insurers (as applicable) that is sufficiently relevant and recent to provide reasonable assurance that the person is familiar with current issues in the audit of that type of APRA-regulated institution;
       (e)          for an Appointed Auditor of a general insurer[19] or responsible auditor of an authorised insurance NOHC, is not:
(i)                   for the Appointed Auditor of a general insurer, the Appointed Actuary of the general insurer or, for the responsible auditor of an authorised insurance NOHC, the Appointed Actuary of a general insurer that is a subsidiary of the authorised insurance NOHC;
(ii)                   an employee or director of a body