Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 16V

When this section applies

  (1)   This section applies if APRA considers that the constitution of a company is deficient because, as a result of the adoption or amendment of approved benefit fund rules of the company, the constitution is inconsistent with those rules.

APRA may give notice requiring amendments

  (2)   APRA may, by written notice given to the company, require the company:

  (a)   to propose consequential amendments to its constitution, to rectify the deficiency, in accordance with requirements specified in, or determined in accordance with, the notice; and

  (b)   to submit the amendments for APRA's approval.

The notice must specify a reasonable period for the submission of the amendments.

Compliance with notice--submission of amendments for approval

  (3)   To submit consequential amendments for APRA's approval, the company must apply in writing to APRA for approval of the amendments under this subsection. The application must be accompanied by a copy of the amendments and must comply with any applicable requirements in the prudential standards.

Approval of submitted amendments

  (4)   APRA may approve the consequential amendments if APRA is satisfied that:

  (a)   an application has been made for approval of the amendments in accordance with subsection   (3); and

  (b)   the amendments rectify the deficiency referred to in subsection   (1).

APRA must give the company written notice of its decision whether to approve the consequential amendments.

Non - compliance with notice--APRA's power to determine amendments

  (5)   If:

  (a)   the company submits consequential amendments for APRA's approval before the end of the period specified in the notice, but APRA refuses to approve the amendments under subsection   (4); or

  (b)   the company fails to submit consequential amendments for APRA's approval before the end of that period;

APRA may, in writing, determine consequential amendments of the constitution to rectify the deficiency.

Non - compliance with notice--notifying company of amendments determined

  (6)   If APRA determines consequential amendments of the constitution under subsection   (5), APRA must immediately give the company written notice of the amendments.

Notifying members of amendments

  (7)   The company commits an offence if:

  (a)   APRA has either:

  (i)   approved consequential amendments under subsection   (4); or

  (ii)   given the company notice of consequential amendments that APRA has determined under subsection   (5); and

  (b)   the prudential standards require the company to notify some or all of its members of the consequential amendments; and

  (c)   the company does not notify those members of the consequential amendments in accordance with that requirement.

Penalty for contravention of this subsection:   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.

  (8)   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 .