repeal unnecessary sections in the Insurance and Life Insurance Acts relating to judicial management. Comparison of key features of new law and current law New law Current law Statutory management of group entities APRA may, in certain APRA may, in certain circumstances, appoint a statutory circumstances, appoint a statutory manager to take control of an manager to an ADI. APRA does not authorised NOHC of a regulated have the power to appoint a statutory entity, or a subsidiary of an manager to an authorised NOHC of a authorised NOHC or regulated regulated entity, or a subsidiary of an entity. APRA will continue to have authorised NOHC or regulated to appointment a statutory entity, unless that subsidiary is also manager to an ADI. an ADI. Statutory management of insurers APRA may, in certain APRA may, in certain circumstances, appoint a statutory circumstances, appoint a statutory manager to an insurer, and to certain manager to an ADI. APRA does not related group entities of an insurer have the power to appoint a statutory (as noted above). manager to an insurer. External administration of holding company as a trigger for statutory or judicial management A statutory manager may take The appointment of an external control of a regulated entity where administrator to a holding company an external administrator has been is not a ground for a statutory appointed to a holding company of manager to take control of a the entity. subsidiary ADI. APRA may apply for a judicial It is also not a ground for APRA to manager to be appointed to an apply for a judicial manager to be insurer where an external appointed to a subsidiary insurer. administrator has been appointed to a holding company of the insurer. Application for appointment of an external administrator to a foreign ADI or foreign insurer as a trigger for statutory or judicial management The fact that an appointment of, or The fact that an appointment of, or an application to appoint, an external application to appoint, an external administrator to a foreign ADI (or administrator to a foreign ADI (or similar procedure) has been similar procedure) has been undertaken in a foreign country will undertaken in a foreign country is be a potential trigger for the not a specific ground for appointment of a judicial manager to appointment of an ADI statutory an insurer or a statutory manager to manager or a judicial manager. an ADI or insurer.
repeal unnecessary sections in the Insurance and Life Insurance Acts relating to judicial management. Comparison of key features of new law and current law New law Current law Statutory management of group entities APRA may, in certain circumstances, appoint a statutory manager to take control of an authorised NOHC of a regulated entity, or a subsidiary of an authorised NOHC or regulated entity. APRA will continue to have to appointment a statutory manager to an ADI. APRA may, in certain circumstances, appoint a statutory manager to an ADI. APRA does not have the power to appoint a statutory manager to an authorised NOHC of a regulated entity, or a subsidiary of an authorised NOHC or regulated entity, unless that subsidiary is also an ADI. Statutory management of insurers APRA may, in certain circumstances, appoint a statutory manager to an insurer, and to certain related group entities of an insurer (as noted above). APRA may, in certain circumstances, appoint a statutory manager to an ADI. APRA does not have the power to appoint a statutory manager to an insurer. External administration of holding company as a trigger for statutory or judicial management A statutory manager may take control of a regulated entity where an external administrator has been appointed to a holding company of the entity. APRA may apply for a judicial manager to be appointed to an insurer where an external administrator has been appointed to a holding company of the insurer. The appointment of an external administrator to a holding company is not a ground for a statutory manager to take control of a subsidiary ADI. It is also not a ground for APRA to apply for a judicial manager to be appointed to a subsidiary insurer. Application for appointment of an external administrator to a foreign ADI or foreign insurer as a trigger for statutory or judicial management The fact that an appointment of, or an application to appoint, an external administrator to a foreign ADI (or similar procedure) has been undertaken in a foreign country will be a potential trigger for the appointment of a judicial manager to an insurer or a statutory manager to an ADI or insurer. The fact that an appointment of, or application to appoint, an external administrator to a foreign ADI (or similar procedure) has been undertaken in a foreign country is not a specific ground for appointment of an ADI statutory manager or a judicial manager.
c2017-t212012-Explanatory-Memorandum.docx