WhistleblowingWhistleblowing

Whistleblowing

31. The Fit and Proper Policy must include adequate provisions to allow whistleblowing if a person believes that a responsible person does not meet the life company’s fit and proper criteria. The Fit and Proper Policy must ensure that the life company 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.

32. The Fit and Proper Policy must include adequate provisions to allow persons who believe that the life company has not complied with this Prudential Standard to notify APRA of that belief and the reasons for it.

33. The Fit and Proper Policy must provide that the life company 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.

34. A life company 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 31, 32 or 33.

35. The Fit and Proper Policy must require that any provisions of the policy encouraging whistleblowing are adequately communicated to directors and employees of the life company and its subsidiaries who are likely to have information relevant to fit and proper assessments.

36. APRA does not require that a life company impose an obligation on any person to make the disclosures under paragraph 31, 32 or 33. 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

37. Where a life company has assessed that a person is not fit and proper, or a reasonable person in the life company’s position would make that assessment, the life company must take all steps it prudently can to ensure that the person:[10]

(a) is not appointed to; or

(b) for an existing responsible person, does not continue to hold the responsible person position.

Informing APRA

38. A life company must, within 28 days of when this Prudential Standard applies to it, notify APRA of the following information for each responsible person: