Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The appointed actuary of a life company must draw to the attention of the company, or of the directors or an officer of the company, any matter that comes to the attention of the actuary and that the actuary thinks requires action to be taken by the company or its directors:
(a) to avoid a contravention of this Act, the Financial Sector (Collection of Data) Act 2001 or the Financial Accountability Regime Act 2023 ; or
(b) to avoid prejudice to the interests of the owners of policies issued by the company.
(2) If the appointed actuary of a life company thinks:
(a) that there are reasonable grounds for believing that the company or a director of the company may have contravened this Act or any other law; and
(b) that the contravention is of such a nature that it may affect significantly the interests of the owners of policies issued by the company;
the appointed actuary must immediately inform APRA in writing of:
(c) his or her opinion; and
(d) the information on which it is based.
(2A) Subsection (2) does not apply to the appointed actuary of a life company in relation to a contravention if:
(a) a director or senior manager of the life company informs the actuary that the life company has informed APRA in writing of the contravention; and
(b) the actuary has no reason to disbelieve the director or senior manager.
(2B) A person commits an offence if:
(a) the person is a director or senior manager of a life company; and
(b) the person knows that:
(i) there are reasonable grounds for believing that the life company or a director of the life company may have contravened this Act or any other Act; and
(ii) the contravention is of such a nature that it may affect significantly the interests of the owners of policies issued by the company; and
(c) the person informs the appointed actuary of the life company that the life company has informed APRA in writing of the contravention; and
(d) the life company has not done so.
Penalty: Imprisonment for 12 months.
(3) If:
(a) the appointed actuary of a life company has drawn to the attention of the company, or of the directors or an officer of the company, a matter that the actuary thinks requires action to be taken by the company or its directors:
(i) to avoid a contravention of this Act, the Financial Sector (Collection of Data) Act 2001 or the Financial Accountability Regime Act 2023 ; or
(ii) to avoid prejudice to the interests of owners of policies issued by the company; and
(b) the appointed actuary is satisfied that there has been reasonable time for the taking of the action but the action has not been taken;
the appointed actuary must inform APRA in writing of the matter referred to in paragraph (a).
(5) If:
(a) a person becomes subject to an obligation under subsection (2) or (3) to inform APRA of anything; and
(b) before the person informs APRA, the person ceases to be the appointed actuary of the life company concerned;
the person remains subject to the obligation as if he or she were still the appointed actuary of the company.