65Simplified outline

#### 65 Simplified outline The following is a simplified outline of this Part: • Lloyd’s will be required to ensure that there are in existence security trust fund arrangements under which final judgments obtained in Australia against Lloyd’s underwriters in respect of certain insurance liabilities may be satisfied out of trust property. • Security trust funds in existence in fulfilment of such a requirement are called designated security trust funds. • APRA may make rules that are applicable to designated security trust funds. • Lloyd’s underwriters are authorised to carry on insurance business. However, that authorisation may be suspended or cancelled if there has been a contravention of this Part. • APRA may require the appointment of an actuary to carry out an investigation of the extent to which a designated security trust fund constitutes an adequate security for the class of insurance liabilities secured by the fund. • APRA has powers of inquiry, direction and investigation in relation to designated security trust funds that correspond to the powers conferred by Part V in relation to authorised corporate insurers. • The Federal Court may make an order placing a designated security trust fund under judicial trusteeship. • Lloyd’s, or a company nominated by Lloyd’s, is required to lodge with APRA a security deposit valued at $2 million. The deposit is available to meet the costs of judicial trusteeship of designated security trust funds.