Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If it appears to APRA that:
(a) a designated security trust fund does not constitute, or is unlikely to constitute, an adequate security for the class of insurance liabilities secured by the fund; or
(b) Lloyd's or the trustee of a designated security trust fund has contravened a provision of this Part;
APRA may, by written notice given to Lloyd's, require Lloyd's to show cause, within such period after the giving of the notice as is specified in the notice, why APRA should not, on specified grounds:
(c) investigate the whole or any part of the affairs of the fund; or
(d) appoint a person to make such an investigation and report to APRA the results of his or her investigation.
(2) The period specified in the notice must be at least 14 days.
(3) If:
(a) Lloyd's fails, within the period specified in the notice, to show cause to the satisfaction of APRA why an investigation should not be made; and
(b) APRA is satisfied that 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 Division called the inspector ) to make the investigation.
(4) Before beginning an investigation of a trust fund, APRA or the inspector, as the case may be, must give the trustee of the fund:
(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 the affairs of the trust fund; 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.