Insurance Act 1973

If it appears to APRA that:

there has been a contravention of any of the provisions of:

this Division; or

Division 2 or 4; or

as a result of an enactment of an Act of the United Kingdom, a substantial change is made in the constitution, powers, rights or obligations of Lloyd’s or of Lloyd’s underwriters; or

as a result of a making of a by‑law by Lloyd’s, the rights or obligations of Lloyd’s underwriters are substantially changed;

a direction that Lloyd’s underwriters must not issue policies or undertake liability under contracts of insurance;

a direction that Lloyd’s underwriters must not renew policies.

If:

a direction under subsection (1) has been in force for a period of more than 180 days; and

Lloyd’s requests APRA, in writing, to review the direction;

remain in force; or

be varied; or

be revoked.

In considering the matter referred to in subsection (2), APRA must have regard to:

whether an investigation under Subdivision B of Division 4 is being, or has been, undertaken; and

whether a determination under section 93 is in force; and

such other matters (if any) as APRA considers relevant.

If:

a request is made under subsection (2) in relation to a direction; and

the direction is still in force immediately before the end of the period of 30 days that began when the request was made;

A Lloyd’s underwriter must comply with a direction in force under subsection (1).

A person who intentionally or recklessly contravenes subsection (5) commits an offence punishable on conviction by a fine not exceeding 200 penalty units.

A copy of a notice under subsection (1) is to be published in the Gazette.