Life Insurance (prudential standards) determination No. 2 of 2008 - Prudential Standard LPS 510 - Governance
Life companies that are subsidiaries of Life companies that are subsidiaries of other APRA-regulated institutions or overseas equivalents
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Life companies that are subsidiaries of other APRA-regulated institutions or overseas equivalents
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For a life company that is a subsidiary of another APRA-regulated institution or an overseas equivalent, the Board of the life company must have a majority of non-executive directors, but these non-executive directors need not all be independent. They can include Board members or senior management of the parent company or its subsidiaries, but not executives of the life company or its subsidiaries.
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A life company to which paragraph 24 applies will be required to have, at a minimum, two independent directors, in addition to an independent chairperson, where the Board has up to seven members. Where the Board has more than seven members, the life company will be required to have at least three independent directors, in addition to an independent chairperson.
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For the purposes of meeting the requirements in paragraph 25, the independent directors on the Board of the parent company or its other subsidiaries can also sit as independent directors on the Board of the life company.