Objects of Act

•   To set out rules about the control of, and the compulsory notification of proposals relating to:

  (a)   the acquisition or leasing of assets of Australian - registered insurance companies (Part   3); or

  (b)   the entering into of agreements relating to directors of Australian - registered insurance companies (Part   4).

•   To protect the public interest in a number of ways, including:

  (a)   ensuring that the affairs of Australian - registered insurance companies are carried out in a prudential manner ; and

  (b)   preventing persons who are not fit and proper from being in a position of influence over Australian - registered insurance companies; and

  (c)   preventing the undue concentration of economic power in the Australian general insurance industry, in the Australian life insurance industry or in the Australian financial system.

Simplified outline of Act

•   A proposal must be notified to the Minister.

•   A proposal can be stopped if the Minister makes a permanent restraining order .

•   A proposal can be carried out if the Minister makes a go - ahead decision .

•   If an unauthorised proposal is carried out, the Minister can make a divestment order .

•   This Act is enforced by criminal sanctions and court orders .