Commonwealth Numbered Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

US FREE TRADE AGREEMENT IMPLEMENTATION ACT 2004 NO. 120, 2004 - SCHEDULE 4

- Life insurance amendments

Life Insurance Act 1995

1 After Part 2A

Insert:

Part 2B—Special provisions relating to Australian branches of foreign life insurance companies

16ZD Eligible foreign life insurance company
(1)
A body corporate is an eligible foreign life insurance company if:

(a) it is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; and
(b) it is authorised in a foreign country, or part of a foreign country, to carry on life insurance business; and
(c) it has established, or proposes to establish, an Australian branch; and
(d) it is not an existing life company that is registered under this Act; and
(e) the conditions specified in the regulations are satisfied in relation to the body corporate.

(2)
The conditions specified in the regulations for the purposes of paragraph (1)(e) may include either or both of the following kinds of conditions:

(a) a condition that the body corporate be authorised to carry on life insurance business in a specified country, or a specified part of a foreign country;
(b) a condition that the body corporate be incorporated in a specified country, or a specified part of a foreign country.

Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003 .

(3)
Subsection (2) does not limit the regulations that may be made for the purposes of paragraph (1)(e).

(4)
In this section:

"Australian branch", in relation to a body corporate, means a permanent establishment (as defined in subsection 6(1) of the Income Tax Assessment Act 1936 ) in Australia through which the body corporate carries on or proposes to carry on life insurance business.

16ZE Act does not apply to foreign life insurance business of eligible foreign life insurance company
This Act does not apply in relation to life insurance business carried on outside Australia by an eligible foreign life insurance company.

16ZF Compliance Committee of eligible foreign life insurance company
(1)
A committee is the Compliance Committee of an eligible foreign life insurance company if:

(a) the members of the committee have powers of management in relation to the Australian branch of the company that carries out life insurance business in Australia; and
(b) those powers of management are sufficient to enable those members to ensure that the company complies with this Act; and
(c) the committee is established and operated in accordance with requirements set out in the prudential standards.

(2)
The prudential standards may set out the following requirements in relation to the establishment and operation of Compliance Committees:

(a) requirements relating to the composition of Compliance Committees;
(b) requirements relating to the resignation of members of Compliance Committees;
(c) requirements relating to the disclosure of interests of members of Compliance Committees;
(d) requirements relating to the termination of appointment of members of Compliance Committees;
(e) requirements relating to the residency in Australia of members of Compliance Committees.

(3)
Subsection (2) does not limit the requirements that may be set out in the prudential standards for the purposes of paragraph (1)(c).

(4)
An eligible foreign life insurance company that is a life company must establish and operate a Compliance Committee.

16ZG Address for service of eligible foreign life insurance companies
(1)
A document or notice required or permitted to be served on, or given to, an eligible foreign life insurance company for the purposes of this Act may be served or given by:

(a) leaving it at its address for service (see subsection (2)); or
(b) sending it by registered post to that address.

(2)
An address becomes the address for service for the eligible foreign life insurance company when written notice of the address is given to APRA. (The address continues to be the address for service until APRA is given written notice of another address.)

2 Paragraph 31(c)

After "outside Australia", insert "(other than an eligible foreign life insurance company)".

3 Subparagraph 31(d)(ii)

Omit "this Act.", substitute "this Act; and".

4 At the end of paragraph 31(d)

Add:

(iii) the company is not an eligible foreign life insurance company.

5 At the end of section 76

Add:

(3)
This section does not apply in relation to an eligible foreign life insurance company.

6 At the end of section 92

Add:

(5)
In this section:

"director", in relation to a life company that is an eligible foreign life insurance company, means a member of the Compliance Committee of the company.

7 At the end of section 113

Add:

(3)
To avoid doubt, if the life company is an eligible foreign life insurance company, the investigation need not cover the financial condition of the company to the extent that the financial condition relates to life insurance business carried on outside Australia by the company (see section 16ZE).

8 At the end of section 165

Add:

(3)
To avoid doubt, if the life company is an eligible foreign life insurance company, paragraphs (1)(c) and (d) do not apply to the extent that the management of the company, or of the business, relates to life insurance business carried on outside Australia by the company (see section 16ZE).

9 At the end of section 230B

Add:

(10)
In this section:

"director", in relation to a life company that is an eligible foreign life insurance company, means a member of the Compliance Committee of the company.

10 At the end of subsection 230F(5)

Add:

Note: Officer would include a member of the Compliance Committee of an eligible foreign life insurance company.

11 After subsection 235(1)

Insert:

(1A)
If a life company that is an eligible foreign life insurance company has engaged, is engaging, or proposes to engage, in any conduct in contravention of this Act, of a direction given under this Act or of a condition imposed on the registration of the company, the Court may grant an injunction:

(a) restraining a member or members of the Compliance Committee of the company from doing anything that would result in the company engaging in the conduct; or
(b) if the Court thinks it desirable to do so, requiring a member or members of the Compliance Committee of the company to do a particular act.

12 After subsection 235(2)

Insert:

(2A)
If a life company that is an eligible foreign life insurance company has refused or failed, or is proposing to refuse or fail, to do an act that the company is required by this Act to do, the Court may grant an injunction requiring a member or members of the Compliance Committee of the company to take action to ensure that the company does the act.

13 Subsection 235(3)

Omit "(1) or (2)", substitute "(1), (1A), (2) or (2A)".

14 Subsection 235(5)

Omit "(1) or (2)", substitute "(1), (1A), (2) or (2A)".

15 Subsection 235(7)

After "life company", insert "or other person".

16 Paragraph 235(7)(a)

After "the company", insert "or person".

17 Paragraph 235(7)(b)

After "the company", insert "or person".

18 Subsection 235(8)

Omit "person" (wherever occurring), substitute "company or person".

19 After subsection 242(1)

Insert:

(1A)
This section does not apply in relation to an eligible foreign life insurance company.

20 At the end of section 245

Add:

(8)
In this section:

"director", in relation to a life company that is an eligible foreign life insurance company, means a member of the Compliance Committee of the company.

21 Schedule (paragraph (b) of the definition of company )

Omit "Territory.", substitute "Territory; or".

22 Schedule (at the end of the definition of company )

Add:

(c) an eligible foreign life insurance company.

23 Schedule

Insert:

"Compliance Committee", in relation to an eligible foreign life insurance company, has the meaning given by subsection 16ZF(1).

24 Schedule

Insert:

"director", in relation to an eligible foreign life insurance company, includes a member of the Compliance Committee of the company.

25 Schedule

Insert:

"eligible foreign life insurance company" has the meaning given by section 16ZD.


[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]