Banking, Insurance and Life Insurance (prudential standards) determination No. 4 of 2011 - Prudential Standard CPS 520 - Fit and Proper
(a) APS 520 made on 23 June 2008;(a) APS 520 made on 23 June 2008;
Start here
Get a plain-English read of (a) APS 520 made on 23 June 2008;
Turn the raw legal text into a practical explanation grounded in Banking, Insurance and Life Insurance (prudential standards) determination No. 4 of 2011 - Prudential Standard CPS 520 - Fit and Proper.
Objective and key requirements of this Prudential StandardThe ultimate responsibility for ensuring the fitness and propriety of the responsible persons of an APRA-regulated institution rests with its Board of directors (or equivalent).Persons who are responsible for the management and oversight of a regulated institution need to have appropriate skills, experience and knowledge, and act with honesty and integrity. These skills and qualities strengthen the protection afforded to depositors, policyholders and other stakeholders. To this end, regulated institutions need to prudently manage the risk that persons in positions of responsibility might not be fit and proper.This Prudential Standard sets out minimum requirements for regulated institutions in determining the fitness and propriety of individuals to hold positions of responsibility.The key requirements of this Prudential Standard include that:a regulated institution must have and implement a Fit and Proper Policy that meets the requirements of this Prudential Standard;the fitness and propriety of a responsible person must generally be assessed prior to initial appointment and then re-assessed annually;a regulated institution must take all prudent steps to ensure that a person is not appointed to, or does not continue to hold, a responsible person position for which they are not fit and proper;additional requirements must be met for certain auditors and Appointed and Reviewing Actuaries; andcertain information must be provided to APRA regarding responsible persons and the regulated institution’s assessment of their fitness and propriety.
Authority
This Prudential Standard is made under:
(a) section 11AF of the Banking Act 1959 (Banking Act) in relation to authorised deposit‑taking institutions (ADIs) and non‑operating holding companies authorised under the Banking Act (authorised banking NOHCs);
(b) section 32 of the Insurance Act 1973 (Insurance Act) in relation to general insurers and non‑operating holding companies authorised under the Insurance Act (authorised insurance NOHCs); and
(c) section 230A of the Life Insurance Act 1995 (Life Insurance Act) in relation to life companies, including friendly societies, and non‑operating holding companies registered under the Life Insurance Act (registered life NOHCs).
Application
This Prudential Standard applies to:
(a) all ADIs, including foreign ADIs, and authorised banking NOHCs;
(b) all general insurers, including Category C insurers, and authorised insurance NOHCs; and
Section (a) APS 520 made on 23 June 2008; - Banking, Insurance and Life Insurance (prudential standards) determination No. 4 of 2011 - Prudential Standard CPS 520 - Fit and Proper - (a) APS 520 made on 23 June 2008; | Zoe
(c) all life companies, including friendly societies and eligible foreign life insurance companies (EFLICs), and registered life NOHCs.
These institutions are collectively referred to as regulated institutions in this Prudential Standard.
All regulated institutions have to comply with this Prudential Standard in its entirety, unless otherwise expressly indicated. The obligations imposed by this Prudential Standard on, or in relation to, a foreign ADI, a Category C insurer or an EFLIC apply only in relation to the Australian business of that institution.
Interpretation
For a general insurer or authorised insurance NOHC, definitions used in Prudential Standard GPS 001 Definitions (GPS 001) also apply in this Prudential Standard, unless otherwise indicated.
For the purposes of this Prudential Standard, the term auditor is used to refer to the following positions except where otherwise specified:
(a) appointed auditor has the meaning given in Prudential Standard APS 310 Audit and Related Matters (APS 310), in relation to an ADI or authorised banking NOHC;
(b) Appointed Auditor has the meaning given in GPS 001, in relation to a general insurer (including a Category C insurer);
(c) Auditor has the meaning given in Prudential Standard LPS 310 Audit and Related Matters (LPS 310), in relation to a life company (including an EFLIC); and
(d) responsible auditor has the meaning given in GPS 001, in relation to an authorised insurance NOHC, and, in relation to a registered life NOHC, is an auditor who is required to prepare a report under the Life Insurance Act, Prudential Standards made under the Life Insurance Act or Reporting Standards made under the Financial Sector (Collection of Data) Act 2001.
For the purposes of this Prudential Standard, Appointed Actuary has the meaning given in GPS 001, in relation to a general insurer[1], and the meaning given in Prudential Standard LPS 320 Actuarial and Related Matters (LPS 320), in relation to a life company.[2]
In this Prudential Standard, the term Prudential Acts is used to refer to the Banking Act, the Insurance Act and the Life Insurance Act;
This Prudential Standard specifies:
(a) the senior management responsibilities for the purposes of the definition of senior manager in the Prudential Acts[3];
(b) the fitness and propriety criteria for auditors and Appointed Actuaries for the purposes of the Prudential Acts[4];
(c) the fitness and propriety criteria for certain responsible persons for the purposes of the Prudential Acts[5]; and
(d) the fitness and propriety criteria for the purposes of paragraph 21(3)(b) of the Banking Act.
Fit and Proper Policy
A regulated institution must prudently manage the risks that persons acting in responsible person positions[6] who are not fit and proper pose to its business and financial standing. To this end, a regulated institution must have a documented policy relating to the fitness and propriety of its responsible persons that meets the requirements of this Prudential Standard (Fit and Proper Policy).
The Fit and Proper Policy must be approved by the Board[7].
A regulated institution must take all reasonable steps to ensure that each responsible person is aware of, and understands, the provisions of its Fit and Proper Policy.
The Fit and Proper Policy must form part of a regulated institution’s risk management system or risk management framework.[8]
Nothing in this Prudential Standard prevents a regulated institution from adopting and applying a group Fit and Proper Policy used by a related body corporate[9], provided that the policy has been approved by the Board in accordance with paragraph 10 and meets the requirements of this Prudential Standard.
Responsible persons
A responsible person of a regulated institution is:
(a) for an ADI (other than a foreign ADI) or an authorised banking NOHC, a person defined in Attachment A;
(b) for a foreign ADI, a person defined in Attachment B;
(c) for a general insurer (other than a Category C insurer) or an authorised insurance NOHC, a person defined in Attachment C;
(d) for a Category C insurer, a person defined in Attachment D;
(e) for a life company (other than an EFLIC) or a registered life NOHC, a person defined in Attachment E; and
(f) for an EFLIC, a person defined in Attachment F.
A person need not be an employee of a regulated institution to be a responsible person if they are within the definitions in paragraph 14 and Attachments A to F inclusive. In some circumstances a consultant, contractor or employee of a subsidiary or otherwise related company may be a responsible person.
In addition to persons who meet the definition of a responsible person, APRA may determine, in writing, that a person is a responsible person if APRA is satisfied that the person plays a significant role in the management or control of the regulated institution, or that the person’s activities may materially impact on prudential matters.
APRA may determine, in writing, that a person is not a responsible person in relation to a particular position, responsibility or activity if APRA is satisfied that the person does not play a significant role in the management or control of the regulated institution or that the person’s activities may not materially impact on prudential matters.
Responsible person position means the responsibilities or activities of a responsible person that would lead to the person being a responsible person under the definitions in paragraph 14 and Attachments A to F inclusive.
Senior managers
Senior manager in relation to a regulated institution means a person (other than a director of that regulated institution) who:
(a) makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the regulated institution;
(b) has the capacity to affect significantly the regulated institution’s financial standing[10];
(c) may materially affect the whole, or a substantial part, of the business of the regulated institution or its financial standing through their responsibility for:
(i) enforcing policies and implementing strategies approved by the Board of the regulated institution;
(ii) the development and implementation of systems used to identify, assess, manage or monitor risks in relation to the business of the regulated institution; or
(iii) monitoring the appropriateness, adequacy and effectiveness of risk management systems; or
(d) for a foreign ADI or Category C insurer, is nominated as the senior officer outside Australia to the extent that the person meets the definition in subparagraphs (a), (b) or (c).
For the purposes of the definition of senior manager in the Prudential Acts[11], the responsibilities set out in paragraph 19, when exercised for a regulated institution, are senior management responsibilities (except where carried out by a director).
Senior manager, in relation to a corporate agent of a Category C insurer, means a person (other than a director of the corporate agent) who, when acting for the corporate agent:
(a) makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the Category C insurer represented by the corporate agent;
(b) has the capacity to affect significantly the Category C insurer’s financial standing[12]; or
(c) may materially affect the whole, or a substantial part, of the business of the Category C insurer or its financial standing through:
(i) enforcing policies and implementing strategies approved by the Board of the Category C insurer;
(ii) the development and implementation of systems that identify, assess, manage or monitor risks in relation to the business of the Category C insurer; or
(iii) monitoring the appropriateness, adequacy and effectiveness of risk management systems.
For the purposes of the definition of senior manager in subsection 3(1) of the Insurance Act, the responsibilities set out in paragraph 21, when exercised for a corporate agent in respect of a 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
A regulated institution must clearly define and document the competencies required for each responsible person position.
For the purposes of the Prudential Acts and for the purposes of determining whether a person is fit and proper to hold a responsible person position, the criteria are whether: [13]
(a) it would be prudent for a 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 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 a 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.
The criteria for fitness and propriety of an auditor for the purposes of the Prudential Acts are those contained in paragraphs 24 and 26.[15]
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 regulated institutions in the industry within which they are working;
(c) has experience relating to ADIs, general insurers or life companies (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 regulated institution;
(d) for an Appointed Auditor of a general insurer[16] 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 corporate, statutory body, partnership, trust, or commercial or professional enterprise of any kind of which that Appointed Actuary is an employee or director[17]; or
(iii) a partner of that Appointed Actuary;
(e) for an Auditor of a life company or responsible auditor of a registered life NOHC, is not:
(i) the Appointed Actuary of the life company or of a life company that is a subsidiary of the registered life NOHC;
(ii) an employee or director of a body corporate, statutory body, partnership, trust, or commercial or professional enterprise of any kind of which that Appointed Actuary is an employee or director; or
(iii) a partner of that Appointed Actuary;
(f) is a member of a recognised professional body; and
(g) is ordinarily resident in Australia.
The criteria in paragraph 26 do not apply if the following conditions are met:
(a) the regulated institution reasonably considers that there are exceptional circumstances;
(b) the regulated institution has promptly notified APRA of which eligibility criteria are not satisfied and of the exceptional circumstances as to why they do not apply; and
(c) APRA has notified the regulated institution in writing that APRA has no objections to the person holding the position in question.
Additional criteria applying to Appointed Actuaries[18] and Reviewing Actuaries
The criteria for fitness and propriety of an Appointed Actuary of a general insurer or life company, or of a Reviewing Actuary of a general insurer, for the purposes of the Prudential Acts are those contained in paragraphs 24 and 29 to 34 inclusive.[19]
The additional criteria that must be met for a person to be fit and proper to act as an Appointed Actuary of a general insurer or life company, or as a Reviewing Actuary of a general insurer, are that the person:
(a) has appropriate formal qualifications;
(b) is not the Chief Executive Officer nor a director of the general insurer or life company, as applicable, or of a related body corporate (except when that related body corporate is a subsidiary of the general insurer or life company, as applicable);
(c) is not:
(i) the Appointed Auditor or Auditor, as applicable;
(ii) for an Appointed Actuary, an employee or director of an entity of which the Appointed Auditor or Auditor is an employee or director; or
(iii) for an Appointed Actuary, a partner of the Appointed Auditor or Auditor, as applicable;
(d) has a minimum of five years’ relevant experience in the provision of actuarial services to institutions carrying on general insurance business or life insurance business, as applicable, and has experience relating to general insurers or life companies, as applicable, that is sufficiently relevant and recent to provide reasonable assurance that the person is familiar with current issues in the provision of actuarial services to such institutions;
(e) is a Fellow or Accredited Member[20] of the Institute of Actuaries of Australia; and
(f) is ordinarily resident in Australia.
In addition to the criteria specified in paragraph 29, a Reviewing Actuary of a general insurer must not be an employee of the insurer.
In addition to the criteria specified in paragraph 28, where a general insurer’s Appointed Actuary is not an employee of the insurer, the Reviewing Actuary must not be:
(a) an employee or director of the same firm or company as the Appointed Actuary, or from a related firm or related company; or
(b) a partner of the same firm or related firm as the Appointed Actuary.
A Reviewing Actuary may, however, be from the same firm or company as the general insurer’s Appointed Auditor or from a related firm or related company.
The criterion in paragraph 29(f) does not apply to the Appointed Actuary of a Category B insurer and a Category C insurer if:
(a) the Appointed Actuary is responsible for providing actuarial services to the corporate group, as a whole, to which the insurer belongs; and
(b) the Appointed Actuary meets the criteria in paragraphs 29(a) to (e) inclusive.[21]
The criteria in paragraph 28 to 32 do not apply while:
(a) the regulated institution reasonably considers that there are exceptional circumstances;
(b) the regulated institution has promptly notified APRA of which eligibility criteria are not satisfied and of the exceptional circumstances; and
(c) APRA has notified the regulated institution in writing that APRA has no objections to the person holding the position.
Process for assessment of fitness and propriety
The Fit and Proper Policy must include the processes to be undertaken in assessing whether a person is fit and proper for a responsible person position (fit and proper assessment). The processes must include details of:
(a) a statement of who will conduct fit and proper assessments on behalf of the regulated institution;
(b) what information will be obtained and how it will be obtained;
(c) the matters that will be considered before determining if a person is fit and proper for a responsible person position; and
(d) the decision-making processes that will be followed.
The Fit and Proper Policy must specify the actions to be taken where a person is assessed as being not fit and proper.
The Fit and Proper Policy must provide that a copy of the Policy is to be given to:
(a) any candidate for election as a director as soon as possible after the candidate is nominated; and
(b) any other person before an assessment of their fitness and propriety is conducted.
The Fit and Proper Policy must require a fit and proper assessment to be completed before a person becomes the holder of a responsible person position unless they hold the position:
(a) because of a resolution of members of the regulated institution; or
(b) because APRA has determined that the person is a responsible person under paragraph 16.
In such cases, the Fit and Proper Policy must require an assessment to be completed within 28 days of the person becoming the holder of the responsible person position.
Interim appointment to a responsible person position may be made without a full fit and proper assessment for a period of up to 90 days (or longer with APRA’s written agreement) including any prior period of interim appointment. Prior to making such an appointment, reasonable steps must be taken, as specified in the Fit and Proper Policy, to assess the fitness and propriety of the person. The regulated institution must complete a full fit and proper assessment prior to appointing the person to the responsible person position on a permanent basis.
The Fit and Proper Policy must require annual fit and proper assessments (or as close to annual as is practicable) for each responsible person position.
When an assessment is conducted, a regulated institution must make all reasonable enquiries[22] to obtain information, including collecting sensitive information as defined in the Privacy Act 1988, that it believes may be relevant to an assessment of whether the person is fit and proper to hold a responsible person position.
Where a responsible person has been assessed as fit and proper, but the regulated institution subsequently becomes aware of information that may result in the person being assessed as not fit and proper, the regulated institution must take all reasonable steps, including collecting sensitive information as defined in the Privacy Act 1988 if relevant, to ensure that it can prudently conclude that no material fitness and propriety concern exists. Where a concern exists, a full fit and proper assessment must be conducted.
The Fit and Proper Policy must contain adequate provisions:
(a) to encourage any person to disclose information that may be relevant to a fit and proper assessment to the regulated institution or to APRA;
(b) to enable the disclosure to APRA of any information the regulated institution is required to provide under this Prudential Standard; and
(c) for giving or obtaining any consents required for the collection and use of any information:
(i) by the regulated institution to comply with the Fit and Proper Policy or this Prudential Standard; and
(ii) by APRA for its powers and functions under the Prudential Acts.
The Fit and Proper Policy must require that sufficient documentation for each fit and proper assessment is retained to demonstrate the fitness and propriety of the regulated institution’s current, and recently past, responsible persons.
The Fit and Proper Policy must include adequate provisions to allow whistleblowing if a person believes that a responsible person does not meet the regulated institution’s fit and proper criteria. The Fit and Proper Policy must ensure that the regulated institution and its subsidiaries consent to the person notifying either the person responsible for conducting fit and proper assessments or APRA of that belief and the reasons for it.
The Fit and Proper Policy must include adequate provisions to allow persons who believe that the regulated institution has not complied with this Prudential Standard to notify APRA of that belief and the reasons for it.
The Fit and Proper Policy must provide that the regulated institution and its subsidiaries consent to any person who held a responsible person position disclosing information or providing documents to APRA relating to their reasons for resignation, retirement or removal.
A regulated institution must not, and must ensure that its subsidiaries do not, constrain, impede, restrict or discourage, whether by confidentiality clauses, policies or other means, any person from disclosing information or providing documents to APRA about matters referred to in paragraphs 44, to 46.[24]
The Fit and Proper Policy must require that any provisions of the Policy, and of the Prudential Acts, encouraging whistleblowing are adequately communicated to directors and employees of the regulated institution and its subsidiaries who are likely to have information relevant to fit and proper assessments.
APRA does not require that a regulated institution impose an obligation on any person to make the disclosures under paragraphs 44, to 46. However, the Fit and Proper Policy must require that all reasonable steps be taken to ensure that no person making such disclosures in good faith is subject to, or threatened with, a detriment because of any notification in purported compliance with the requirements of the Fit and Proper Policy.
When a responsible person is not fit and proper
Where a regulated institution has assessed that a person is not fit and proper, or a reasonable person in the regulated institution’s position would make that assessment, the regulated institution must take all steps it reasonably can to ensure that the person:[25]
(a) is not appointed to; or
(b) for an existing responsible person, does not continue to hold
the responsible person position.
Informing APRA
A regulated institution must notify APRA of the following information for each responsible person:
(a) the person’s full name;
(b) the person’s date of birth (for identification purposes only);
(c) the person’s position and main responsibilities; and
(d) a statement of whether the person has been assessed under the Fit and Proper Policy.
A regulated institution must ensure that the information provided under paragraph 51 remains correct for all of its responsible persons. Subject to the Prudential Acts, it must provide revised information to APRA within 28 days of any change or new appointment.
A regulated institution must notify APRA within 10 business days if it assesses that a responsible person is not fit and proper. If the person remains in the responsible person position, the notification must state the reason for this and the action that is being taken.
The information or notifications required by this Prudential Standard must be given in such form, if any, and by such procedures, if any, as APRA publishes on its website from time to time.
A regulated institution must take reasonable steps to:
(a) obtain any information and documentation that APRA asks of it; and
(b) provide that information to APRA
to assist APRA in assessing the fitness and propriety of a person. This could include providing the Fit and Proper Policy to APRA on request.
APRA does not and will not require disclosure of spent convictions where precluded under Part VIIC of the Crimes Act 1914.
Commencement and transitional arrangements
This Prudential Standard commences on 1 July 2012 (effective date).
Upon commencement of this Prudential Standard, the existing requirements contained in Prudential Standard APS 520 Fit and Proper (APS 520), Prudential Standard GPS 520 Fit and Proper (GPS 520) and Prudential Standard LPS 520 Fit and Proper (LPS 520) will cease to have effect.
Adjustments and exclusions
APRA may, by notice in writing to a regulated institution, adjust or exclude a specific prudential requirement in this Prudential Standard in relation to that regulated institution.[26]
Determinations made under previous prudential standards
An exercise of APRA’s discretion (such as an approval, waiver or direction) under a previous version of this Prudential Standard continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard.
For the purposes of this paragraph, ‘a previous version of this Prudential Standard’ includes:
(a) APS 520 made on 23 June 2008;
(b) GPS 520 made on 23 June 2008; and
(c) LPS 520 made on 2 March 2010.
Attachment A
Responsible persons of authorised deposit-taking institutions and authorised banking NOHCs
A responsible person of an ADI (other than a foreign ADI) or authorised banking NOHC is any person who is:
(a) a director of the regulated institution;
(b) a senior manager of the regulated institution;
(c) an appointed auditor who provides any report in relation to the ADI that is required to be prepared by an auditor under the Banking Act, Prudential Standards made under the Banking Act or Reporting Standards under the Financial Sector (Collection of Data) Act 2001;
(d) an appointed auditor who provides any report in relation to the authorised banking NOHC that is required to be prepared by an auditor under the Banking Act, Prudential Standards made under the Banking Act or Reporting Standards; or
(e) a person who performs activities for a subsidiary of the regulated institution where those activities could materially affect the whole, or a substantial part, of the business of the regulated institution or its financial standing, either directly or indirectly.
References to a subsidiary in subparagraph 1(e) do not apply to a subsidiary that holds an RSE licence under the Superannuation Industry (Supervision) Act 1993. [27]
Attachment B
Responsible persons of foreign authorised deposit-taking institutions
A responsible person of a foreign ADI is any person who is:
(a) a senior manager of the Australian operations of the foreign ADI who is, except in the case of the senior officer outside Australia referred to in paragraph 19(d) of this Prudential Standard, ordinarily resident in Australia;
(b) an appointed auditor of the foreign ADI; or
(c) a person who performs activities for a subsidiary of the foreign ADI that the foreign ADI controls as part of its Australian operations, where:
(i) those activities could materially affect the whole, or a substantial part, of the business of the Australian operations of the foreign ADI or its financial standing, either directly or indirectly; and
(ii) the person is ordinarily resident in Australia.
References to a subsidiary in subparagraph 1(c) do not apply to a subsidiary that holds an RSE licence under the Superannuation Industry (Supervision) Act 1993.[28]
Attachment C
Responsible persons of general insurers and authorised insurance NOHCs
A responsible person of a general insurer (other than a Category C insurer) or authorised insurance NOHC is any person who is:
(a) a director of the regulated institution;
(b) a senior manager of the regulated institution;
(c) for a general insurer, the Appointed Auditor;
(d) for a general insurer, the Appointed Actuary and the Reviewing Actuary;
(e) a responsible auditor who provides any report in relation to the authorised insurance NOHC that is required to be prepared by an auditor under the Insurance Act, Prudential Standards made under the Insurance Act or Reporting Standards under the Financial Sector (Collection of Data) Act 2001; or
(f) a person who performs activities for a subsidiary of the regulated institution where those activities may materially affect the whole, or a substantial part, of the business of the regulated institution or its financial standing, either directly or indirectly.
References to a subsidiary in subparagraph 1(f) do not apply to a subsidiary that holds an RSE licence under the Superannuation Industry (Supervision) Act 1993.[29]
Attachment D
Responsible persons of Category C insurers
A responsible person of a Category C insurer is any person who is:
(a) a senior manager of the Category C insurer who is, except in the case of the senior officer outside Australia referred to in paragraph 19(d) of this Prudential Standard, ordinarily resident in Australia;
(b) the Category C insurer’s agent in Australia where the agent in Australia is an individual[30];
(c) a director of the Category C insurer’s agent in Australia where the agent in Australia is a corporate agent;
(d) a senior manager of the Category C insurer’s agent in Australia where the agent in Australia is a corporate agent;
(e) the Appointed Auditor of the Category C insurer;
(f) the Appointed Actuary and the Reviewing Actuary of the Category C insurer; or
(g) a person who performs activities for a subsidiary of the Category C insurer that the Category C insurer controls as part of its Australian operations, where:
(i) those activities may materially affect the whole, or a substantial part, of the business of the Category C insurer or its financial standing, either directly or indirectly; and
(ii) the person is ordinarily resident in Australia.
References to a subsidiary in subparagraph 1(g) do not apply to a subsidiary that holds an RSE licence under the Superannuation Industry (Supervision) Act 1993.
Attachment E
Responsible persons of life companies and registered life NOHCs
A responsible person of a life company (other than an EFLIC) or registered life NOHC is any person who is:
(a) a director of the regulated institution;
(b) a senior manager of the regulated institution;
(c) for a life company, the Auditor;
(d) for a life company, the Appointed Actuary;
(e) a responsible auditor who is required, in relation to a registered life NOHC, to prepare a report under the Life Insurance Act, Prudential Standards made under the Life Insurance Act or Reporting Standards under the Financial Sector (Collection of Data) Act 2001; or
(f) a person who performs activities for a subsidiary of the life company or registered life NOHC where those activities may materially affect the whole, or a substantial part, of the business of the life company or registered life NOHC or its financial standing, either directly or indirectly.
References to a subsidiary in subparagraph 1(f) do not apply to a subsidiary that holds an RSE licence under the Superannuation Industry (Supervision) Act 1993.
Attachment F
Responsible persons of eligible foreign life insurance companies
A responsible person of an EFLIC is any person who is:
(a) a member of the Compliance Committee of the EFLIC;
(b) a senior manager of the Australian operations of the EFLIC who is ordinarily resident in Australia;
(c) the Auditor of the EFLIC;
(d) the Appointed Actuary of the EFLIC; or
(e) a person who performs activities for a subsidiary of the EFLIC that the EFLIC controls as part of its Australian operations, where:
(i) those activities may materially affect the whole, or a substantial part, of the business of the Australian operations of the EFLIC or its financial standing, either directly or indirectly; and
(ii) where the person is ordinarily resident in Australia.
References to a subsidiary in subparagraph 1(e) do not apply to a subsidiary that holds an RSE licence under the Superannuation Industry (Supervision) Act 1993.