Document ID: chunk:federal_register_of_legislation:C2019A00040:clause:5_131da:p1
Version: federal_register_of_legislation:C2019A00040
Segment Type: clause
Provision Reference: sch 5 cl 131DA (pt 1/3)
Character Range: 41312–43896

131DA  APRA may give directions in relation to the conduct of a connected entity of an RSE licensee
 (1) APRA may give an RSE licensee a direction of a kind mentioned in subsection (5), or a direction to cause a connected entity of the RSE licensee to do or not to do something of a kind mentioned in subsection (5), if APRA has reason to believe that:
 (a) a connected entity of the RSE licensee has contravened a provision of:
 (i) this Act; or
 (ii) the regulations; or
 (iii) the prudential standards; or
 (ii) the Financial Sector (Collection of Data) Act 2001; or
 (b) a connected entity of the RSE licensee is likely to contravene a provision mentioned in paragraph (a); or
 (c) the direction relates to a connected entity of the RSE licensee and is necessary in the interests of beneficiaries of a registrable superannuation entity of the RSE licensee; or
 (d) a connected entity of the RSE licensee is, or is about to become, unable to meet the connected entity's liabilities; or
 (e) there is, or there might be, a material risk to the security of the assets of a connected entity of the RSE licensee; or
 (f) there has been, or there might be, a material deterioration in the financial condition of a connected entity of the RSE licensee; or
 (g) a connected entity of the RSE licensee is conducting the entity's affairs in an improper or financially unsound way; or
 (h) a connected entity of the RSE licensee is conducting the entity's affairs in a way that may cause or promote instability in the Australian financial system; or
 (i) a connected entity of the RSE licensee is conducting the entity's affairs in a way that may cause it to be unable to continue to supply products or services to the RSE licensee, or a registrable superannuation entity of the RSE licensee; or
 (j) the direction relates to a connected entity of the RSE licensee and the failure to issue a direction would materially prejudice the interests of beneficiaries of a registrable superannuation entity of the RSE licensee.
 (2) However, APRA can only make a direction under subsection (1) as a result of a ground referred to in paragraph (1)(d), (e), (f), (g), (h) or (i) if APRA considers that the direction is reasonably necessary to ensure that the RSE licensee's duties as trustee of a registrable superannuation entity are properly performed.
 (3) APRA may give a connected entity of an RSE licensee a direction of a kind mentioned in subsection (5) if:
 (a) APRA has given the RSE licensee a direction under subsection (1) because one or more of the grounds referred to in that subsection