Banking, Insurance and Life Insurance (prudential standards) determination No. 3 of 2011 - Prudential Standard CPS 510 - Governance
Duties and responsibilities of the CommiDuties and responsibilities of the Committee
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Duties and responsibilities of the Committee
- The Committee must, with the powers delegated to it by the Board, ensure that the EFLIC complies with:
(a) the Life Insurance Act;
(b) the Life Insurance Regulations 1995;
(c) the Prudential Standards determined under section 230A of the Life Insurance Act;
(d) the Prudential Rules made under section 252 of the Life Insurance Act;
(e) any conditions placed upon the EFLIC under section 22 of the Life Insurance Act at the time of, or after, its registration;
(f) directions given under the Life Insurance Act; and
(g) the Financial Sector (Collection of Data) Act 2001.
- The Committee members must report to APRA, within 14 business days of becoming aware:
(a) that the EFLIC has failed to comply with a requirement referred to in paragraph 25 of this Attachment; or
(b) the Committee believes there is a material risk of the EFLIC being unable to meet its obligations at some future time.
- The report must:
(a) be in the form of a written report explaining the causes of the failure or the material risk to the solvency of the EFLIC identified by the Committee; and
(b) outline a plan and timeframe for rectifying the failure or mitigating the risk of insolvency.
- APRA would expect the Committee to provide a copy of the report to the Board.