Insurance Act 1973

On application by APRA, the Federal Court of Australia may, by order, disqualify a person from holding any appointment as a person referred to in subsection (2), for a period that the Court considers appropriate, if the Court is satisfied that:

any of the following applies:

the person has failed to perform adequately and properly the functions and duties of such an appointment under this Act or the prudential standards;

the person has failed to comply with a requirement of the Financial Accountability Regime Act 2023;

the person otherwise does not meet one or more of the criteria for fitness and propriety set out in the prudential standards;

the person does not meet the eligibility criteria for such an appointment as set out in the prudential standards; and

the disqualification is justified.

For the purposes of subsection (1), the Court may disqualify a person from being or acting as an auditor or actuary of:

a particular general insurer; or

a class of general insurers; or

any general insurer.

In deciding whether it is satisfied as mentioned in paragraph (1)(a), the Court may take into account:

any matters specified in the regulations for the purposes of this paragraph; and

any criteria for fitness and propriety set out in the prudential standards; and

any other matters the Court considers relevant.

In deciding whether the disqualification is justified as mentioned in paragraph (1)(b), the Court may have regard to:

the person’s conduct in relation to the functions or duties that the person is required to perform under this Act, the prudential standards and the Financial Accountability Regime Act 2023; and

any other matters the Court considers relevant.

As soon as practicable after the Court disqualifies a person under this section, APRA must cause particulars of the disqualification:

if the person is, or is acting as, an auditor or actuary of a general insurer—to be given to the general insurer concerned; and

to be published in the Gazette.