132ARequirement to notify APRA of certain matters

#### 132A Requirement to notify APRA of certain matters Matters requiring immediate notice (1) If: (a) a life company becomes aware that the life company has breached or will breach a provision of this Act; and (b) the provision relates to financial obligations the life company has to the owners of policies issued by it or to the life company’s minimum capital requirements; the life company must immediately notify APRA in writing of the breach. Offence in relation to matters requiring immediate notice (2) A life company commits an offence if the life company contravenes subsection (1). Penalty: 200 penalty units. Defence if matter already notified (3) Subsection (2) does not apply to a life company in relation to a breach referred to in subsection (1) if: (a) the life company becomes aware of the breach because it is informed of it by an auditor or the appointed actuary of the life company; and (b) the auditor or appointed actuary informs the life company that the auditor or actuary has notified APRA in writing of the breach; and (c) the life company has no reason to disbelieve the auditor or appointed actuary. > Note 1: Auditors and appointed actuaries must give APRA certain information under sections 88, 88B, 98 and 98B, and may give APRA information under sections 88A and 98A. > Note 2: The defendant bears an evidential burden in relation to the matters in subsection (3). See subsection 13.3(3) of the Criminal Code. Matters requiring notice as soon as practicable (4) If a body corporate that is a life company, registered NOHC or subsidiary of a life company or registered NOHC becomes aware: (a) both: (i) that the body has breached or will breach a provision of this Act (other than a provision to which subsection (1) applies); and (ii) that the breach is or will be significant (see subsection (5)); or (b) of a matter that materially and adversely affects the body’s financial position; the body must give APRA a written report about the breach or matter as soon as practicable, and in any case no later than 10 business days, after becoming aware of the breach or matter. (5) For the purposes of subparagraph (4)(a)(ii), a breach of a provision is or will be significant if the breach is or will be significant having regard to one or more of the following: (a) the number or frequency of similar breaches; (b) the impact the breach has or will have on the body corporate’s ability to conduct its business; (c) the extent to which the breach indicates that the body corporate’s arrangements to ensure compliance with this Act might be inadequate; (d) the actual or potential financial loss arising or that will arise from the breach: (i) to the owners of policies issued by the body corporate, if it is a life company, or by a life company that is related to the body corporate; or (ii) to the body corporate; (e) any matters prescribed by the regulations for the purposes of this paragraph. Offence in relation to matters requiring notice as soon as practicable (6) A body corporate that is a life company, registered NOHC or subsidiary of a life company or registered NOHC commits an offence if the body contravenes subsection (4). Penalty: 200 penalty units. Defence if auditor or actuary notifies breach (7) Subsection (6) does not apply to a body corporate in relation to a breach or matter referred to in subsection (4) if: (a) an auditor of the body, or its appointed actuary if it is a life company, gives APRA a written report about the breach or matter; and (b) the report is given before, or within 10 business days after, the life company becomes aware of the breach or matter. > Note 1: Auditors and appointed actuaries must give APRA certain information under sections 88, 88B, 98 and 98B, and may give APRA information under sections 88A and 98A. > Note 2: The defendant bears an evidential burden in relation to the matters in subsection (7). See subsection 13.3(3) of the Criminal Code. Ancillary offences (8) If an individual: (a) commits an offence under subsection (2) or (6) because of Part 2.4 of the Criminal Code; or (b) commits an offence under Part 2.4 of the Criminal Code in relation to an offence under subsection (2) or (6); the individual is punishable on conviction by a fine not exceeding 40 penalty units. Limits on information to be provided (9) A notice or report given under subsection (1) or (4) must not include information, books, accounts or documents with respect to the affairs of an individual insured person, unless the information, books, accounts or documents are in respect of prudential matters relating to the body corporate giving the notice or report.