Application for a modified Committee comApplication for a modified Committee composition

Application for a modified Committee composition

9. APRA may, on written application from an EFLIC, determine a modified Committee for the EFLIC where it can be demonstrated that it is appropriate to do so.

10. In making this determination, APRA will take into account the following factors:

(a) the quantum of liabilities written by the EFLIC;

(b) the cost effectiveness or otherwise of establishing a Committee;

(c) any restrictions on the lines of business written by the EFLIC;

(d) whether these restrictions limit the number of policyholders of the EFLIC (for example, by targeting specific policyholder characteristics, such as age, nationality or geographical location); and

(e) whether the EFLIC has written any material amount of long tail business.

11. The composition of any modified Committee would be determined in writing on a case by case basis by APRA, but the possible modifications could take one or more of the following forms:

(a) a Committee with fewer than five members;

(b) replacing the director of the Board of the EFLIC as required by subparagraph 5(a) with the PEO; or

(c) a Committee with fewer than two independent members.