Processes of the CommitteeProcesses of the Committee

Processes of the Committee

19. At least three members of the Committee are required to be present at a meeting of the Committee to form a quorum. The PEO, and at least one independent member who is ordinarily resident in Australia, must be amongst the three members present.

20. The chairperson of the Committee must be a non-executive member.

21. Resolutions can only be passed by a majority with the chairperson having a casting vote.

22. The Committee must meet as often as required to discharge its duties and responsibilities, although APRA would expect the Committee to meet on at least a quarterly basis. Members, and individuals who may be needed to address the Committee, must be given reasonable notice of pending meetings.

23. The Committee must ensure that the Appointed Actuary is given reasonable notice of any meeting of the Committee at which matters are to be considered that relate to the functions and duties of the actuary, including matters:

(a) that relate to, or may affect:

(i) the solvency of the company; or

(ii) the adequacy of the capital of the company; or

(b) that relate to advice given by the Appointed Actuary to the

directors; or

(c) that concern a matter in relation to which the Appointed

Actuary will be required to give advice.

24. Written minutes of Committee meetings must be taken and copies kept and made available to APRA on request. Any papers or submissions put to the Committee must likewise be kept and made available to APRA on request.

Duties and responsibilities of the Committee

25. The Committee must, with the powers delegated to it by the Board, ensure that the EFLIC complies with:

(a) the Act;

(b) the Life Insurance Regulations 1995;

(c) the prudential standards determined under section 230A;

(d) the Prudential Rules made under section 252;

(e) any conditions placed upon the EFLIC under section 22 at the time, or after, of its registration;

(f) directions given under the Act; and

(g) the Financial Sector (Collection of Data) Act 2001.

26. The Committee members must report to APRA, within 14 business days, of becoming aware:

(a) that the EFLIC has failed to comply with a requirement referred to in paragraph 25; or

(b) the Committee believes there is a material risk of the EFLIC being unable to meet its obligations at some future time.