Document ID: chunk:federal_register_of_legislation:C2012C00862:clause:3_230ab
Version: federal_register_of_legislation:C2012C00862
Segment Type: clause
Provision Reference: sch 3 cl 230AB
Character Range: 100633–102023

230AB  Recapitalisation direction by APRA
 (1) APRA may give a life company a direction (a recapitalisation direction) that requires the company to increase the company's level of capital to the level specified in the direction, if:
 (a) the company informs APRA that:
 (i) the company considers that the company is likely to become unable to meet the company's obligations; or
 (ii) the company is about to suspend payment; or
 (b) APRA considers that:
 (i) the company may become unable to meet the company's obligations; or
 (ii) the company may suspend payment; or
 (iii) it is likely that the company will be unable to carry on insurance business in Australia consistently with the interests of the company's policy owners; or
 (iv) it is likely that the company will be unable to carry on insurance business in Australia consistently with the stability of the financial system in Australia; or
 (c) the company:
 (i) becomes unable to meet the company's obligations; or
 (ii) suspends payment.
 (2) In deciding whether to give a recapitalisation direction, APRA must consult with the Australian Competition and Consumer Commission (the ACCC), unless the ACCC notifies APRA, in writing, that the ACCC does not wish to be consulted about:
 (a) the direction; or
 (b) a class of directions that includes the direction.
 (3) A recapitalisation direction is not a legislative instrument.