Commonwealth Consolidated Acts

PRIVATE HEALTH INSURANCE (PRUDENTIAL SUPERVISION) ACT 2015 - SECT 92

APRA may make prudential standards

  (1)   Subject to subsection   (8), APRA may, in writing, make standards ( prudential standards ), relating to prudential matters, that must be complied with by, or in relation to, private health insurers.

  (2)   Prudential matters , in relation to a private health insurer, are matters relating to:

  (a)   the conduct of the affairs of the insurer in such a way as:

  (i)   to keep the insurer in a sound financial position; or

  (ii)   not to cause or promote instability in the Australian private health insurance system; or

  (b)   the conduct of the affairs of the insurer with integrity, prudence and professional skill.

The private health insurers to which a prudential standard applies

  (3)   A prudential standard may be expressed to apply in relation to:

  (a)   all private health insurers; or

  (b)   a specified class of private health insurers only; or

  (c)   one or more specified private health insurers only.

Prudential standards may provide for APRA to exercise powers and discretions

  (4)   A prudential standard may provide for APRA to exercise powers and discretions under the standard, including but not limited to discretions to approve, impose, adjust or exclude specific prudential requirements in relation to a particular private health insurer.

Variation and revocation of prudential standards

  (5)   APRA may, in writing, vary or revoke a prudential standard.

Prudential standards are legislative instruments (other than standards that apply to one or more specified insurers)

  (6)   A prudential standard referred to in paragraph   (3)(a) or (b), or an instrument varying or revoking such a prudential standard, is a legislative instrument. However, a prudential standard referred to in paragraph   (3)(c), or an instrument varying or revoking such a prudential standard, is not a legislative instrument.

Note 1:   Paragraph   (3)(c) covers prudential standards that are expressed to apply in relation to one or more specified private health insurers only. Section   93 applies to these prudential standards.

Note 2:   A decision to make, vary or revoke a prudential standard referred to in paragraph   (3)(c) is reviewable under section   168.

Prudential standards may provide for a matter by adopting etc. material from another instrument

  (7)   A prudential standard may provide for a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time, despite:

  (a)   section   46AA of the Acts Interpretation Act 1901 ; and

  (b)   section   14 of the Legislation Act 2003 .

Prudential standards may not do certain things

  (8)   To avoid doubt, prudential standards may not do the following:

  (a)   create an offence or civil penalty;

  (b)   provide powers of:

  (i)   arrest or detention; or

  (ii)   entry, search or seizure;

  (c)   impose a tax;

  (d)   set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;

  (e)   directly amend the text of this Act.

Delegation of power to make etc. prudential standards

  (9)   APRA may, under section   15 of the Australian Prudential Regulation Authority Act 1998 , delegate the power to make, vary or revoke prudential standards, but only if the delegation is to:

  (a)   an APRA member (within the meaning of that Act); or

  (b)   an APRA staff member who is an executive general manager or equivalent.