Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where:
(aa) it appears to APRA that a body corporate that is a general insurer or authorised NOHC:
(i) is, or is likely to become, unable to meet its liabilities; or
(ii) has contravened or failed to comply with a provision of this Act or the Financial Sector (Collection of Data) Act 2001 or a condition or direction applicable to it under this Act or that Act; or
(ab) it appears to APRA that there is, or there may be, a risk to the security of a general insurer's or authorised NOHC's assets; or
(a) it appears to APRA that there is, or there may be, a sudden deterioration in a general insurer's or authorised NOHC's financial condition; or
(b) it appears to APRA that information in its possession calls for the investigation of the whole or any part of the business of a general insurer or authorised NOHC;
APRA may, by notice in writing served on the body corporate, require it to show cause within such period after service of the notice, being not less than 14 days, as APRA specifies in the notice, why APRA should not:
(c) investigate the whole or any part of the business of the body corporate; or
(d) appoint a person to make such an investigation and report to APRA the results of his or her investigation.
(1AA) A notice under subsection (1) must specify which of paragraphs 1(aa), (ab), (a) or (b) is being relied on to give the notice.
(1AB) Despite subsection (1), APRA may specify a period of less than 14 days in a notice under that subsection if:
(a) APRA considers that specifying the shorter period is necessary; and
(b) the period specified is reasonable in the circumstances.
(1A) If APRA has served, or is proposing to serve, a notice under subsection (1) on a body corporate, APRA may:
(a) if the notice has been served--at any time; or
(b) otherwise--at or about the time when the notice is served;
cause a written notice to be served under subsection (1C) on a body corporate that is a subsidiary of the first - mentioned body corporate.
(1B) If it appears to APRA that a body corporate that is a subsidiary of a body corporate that is a general insurer or authorised NOHC has contravened a provision of this Act or the Financial Sector (Collection of Data) Act 2001 or a condition or direction applicable to it under this Act or the Financial Sector (Collection of Data) Act 2001 , APRA may cause a written notice to be served under subsection (1C) on the subsidiary.
(1C) A notice referred to in subsection (1A) or (1B) may require the body corporate on which it is served to show cause, within such period after service of the notice (being not less than 14 days) as is stated in the notice, why APRA should not, on stated grounds:
(a) investigate the whole or any part of the business of the body corporate; or
(b) appoint a person to make such an investigation and report to APRA the results of the investigation.
(2) If:
(a) a body corporate on which a notice is served under subsection (1), (1A) or (1B) fails, within the period stated in the notice, to show cause to APRA's satisfaction why an investigation should not be made; and
(b) APRA is satisfied that:
(i) if the notice was served under subsection (1)--in relation to the insurance business carried on by the body corporate; or
(ii) otherwise--in relation to any business carried on by the body corporate;
it is in the public interest that an investigation should be made;
APRA may:
(c) make the investigation itself; or
(d) in writing, appoint a person (in this Part called the inspector ) to make the investigation.
(3) If:
(a) APRA has decided that an investigation of a body corporate (in this section called the first body corporate ) should be made; and
(b) another body corporate (in this section called the associated body corporate ) is, or has at some relevant time been, associated with the first body corporate; and
(c) APRA believes on reasonable grounds that it is necessary for the purposes of the investigation to investigate the whole or a part of the affairs of the associated body corporate;
APRA may:
(d) make an investigation into the whole or that part of the affairs of the associated body corporate; or
(e) authorise the inspector to make such an investigation.
(4) Before commencing an investigation of a body corporate, APRA or the inspector, as the case may be, must serve on the body corporate:
(a) in all cases--a written notice by APRA specifying the matters into which the investigation is to be made, being the whole or some part of affairs of the body corporate; and
(b) in the case of the inspector--a copy of the instrument appointing the inspector.
(5) The inspector is to be a person resident in Australia.
(6) To avoid doubt, this section applies to a body corporate that is, or becomes, a Chapter 5 body corporate (within the meaning of the Corporations Act 2001 ) in the same way as this section applies to any other body corporate.