Document ID: chunk:federal_register_of_legislation:C2025C00135:section:179aa:p1
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 179AA (pt 1/3)
Character Range: 280225–282914

179AA  Consequences of inability or failure of life company etc. to meet certain requirements

Appointment of administrator or control by APRA
 (1) APRA may take control of a life company's business or appoint an administrator to take control of the life company's business if both of the following requirements are met:
 (a) APRA is satisfied of the matters of which the Court is required to be satisfied for the purposes of section 158 or 159;
 (b) subsection (2) applies.
 (2) This subsection applies if APRA is satisfied that at least one of the following situations exists:
 (a) both:
 (i) an AFS statutory manager has taken control of a body corporate under this Act, the Banking Act 1959 or the Insurance Act 1973 (or APRA intends for that to occur); and
 (ii) the life company and the body corporate are related bodies corporate;
 (b) both:
 (i) the life company's financial position is deteriorating rapidly, or is likely to deteriorate rapidly; and
 (ii) failure to respond quickly to the deterioration would be likely to prejudice the interests of policy owners of the life company;
 (c) it is likely that the life company will be unable to carry on life insurance business in Australia consistently with the stability of the financial system in Australia;
 (d) an external administrator has been appointed to a holding company of the life company (or a similar appointment has been made in a foreign country in respect of such a holding company), and the appointment poses a significant threat to:
 (i) the operation or soundness of the life company; or
 (ii) the interests of policy owners of the life company; or
 (iii) the stability of the financial system in Australia;
 (e) if the life company is an eligible foreign life insurance company:
 (i) an application for the appointment of an external administrator of the eligible foreign life insurance company, or for a similar procedure in respect of the eligible foreign life insurance company, has been made in a foreign country; or
 (ii) an external administrator has been appointed to the eligible foreign life insurance company, or a similar appointment has been made in respect of the eligible foreign life insurance company, in a foreign country.
 (3) APRA may take any of the actions mentioned in subsection (4) in relation to a body corporate (the target body corporate) if:
 (a) the target body corporate is a body corporate that is any of the following:
 (i) a registered NOHC of a life company (the relevant life company);
 (ii) a subsidiary of a registered NOHC of a life company (also the relevant life company);
 (iii) a subsidiary of a life company (also the relevant life company); and
 (b) the condition in