Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 16E

  (1)   A body corporate commits an offence if:

  (a)   it assumes or uses, in Australia, the expression friendly society in relation to a financial business carried on by the body corporate (whether or not in Australia); and

  (b)   it is not a friendly society; and

  (c)   APRA did not consent to that assumption or use of that expression.

Penalty:   50 penalty units.

Note:   If a body corporate is convicted of an offence against this subsection, subsection   4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

  (1A)   Subsection   (1) is an offence of strict liability.

Note 1:   Chapter   2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:   For strict liability , see section   6.1 of the Criminal Code .

  (2)   If a body corporate assumes or uses the expression friendly society in circumstances that give rise to the body corporate committing an offence against subsection   (1), the body corporate commits an offence against that subsection in respect of:

  (a)   the first day on which the offence is committed; and

  (b)   each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day).

Note:   This subsection is not intended to imply that section   4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

  (3)   A consent may be expressed to apply to a particular body corporate or to bodies corporate included in a class of bodies corporate.

  (4)   APRA may, at any time:

  (a)   impose conditions, or additional conditions, on a consent; or

  (b)   vary or revoke conditions imposed on a consent; or

  (c)   revoke a consent.

  (5)   The form of the granting of a consent, or the taking of action under subsection   (4) in relation to a consent, is to be as follows:

  (a)   if the consent applies to a particular body corporate--notice in writing served on the body corporate;

  (b)   if the consent applies to a class of bodies corporate--notice in writing published in the Gazette .

  (6)   If APRA:

  (a)   grants a consent; or

  (b)   takes action under subsection   (4) in relation to a consent;

APRA must also give ASIC notice of the granting of the consent or the taking of that action.

  (7)   A body corporate commits an offence if:

  (a)   it has been given a consent under this section; and

  (b)   it contravenes a condition to which the consent is subject.

Penalty:   50 penalty units.

Note:   If a body corporate is convicted of an offence against this subsection, subsection   4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

  (7A)   Subsection   (7) is an offence of strict liability.

Note 1:   Chapter   2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:   For strict liability , see section   6.1 of the Criminal Code .

  (8)   If a body corporate does or fails to do an act in circumstances that give rise to the body corporate committing an offence against subsection   (7), the body corporate commits an offence against that subsection in respect of:

  (a)   the first day on which the offence is committed; and

  (b)   each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day).

Note:   This subsection is not intended to imply that section   4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

  (9)   In this section:

"financial business" means a business that:

  (a)   consists of, or includes, the provision of financial services; or

  (b)   relates, in whole or in part, to the provision of financial services.