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Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Bill 2007

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2004-2005-2006-2007

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Bill 2007

 

 

(1)     Schedule 2, page 6 (after line 11), after item 3, insert:

3A  Subsection 3(1)

Insert:

corporate agent means a body corporate that is appointed under section 118 as an agent in Australia for the purpose of that section.

[definition of corporate agent]

(2)     Schedule 2, page 6 (after line 27), after item 5, insert:

5A  Subsection 3(1) (definition of senior manager )

Repeal the definition, substitute:

senior manager of a general insurer or a corporate agent means a person who has or exercises any of the senior management responsibilities (within the meaning of the prudential standards) for the insurer or agent.

[senior managers of corporate agents]

(3)     Schedule 2, page 10 (after line 25), after item 9, insert:

9A  At the end of subsection 24(1)

Add:

               ; or (d)  a director or senior manager of a corporate agent.

Note:       The heading to section 24 is altered by omitting “ or authorised NOHCs ” and substituting “ , authorised NOHCs or corporate agents ”.

9B  At the end of subsection 24(4)

Add:

               ; or (d)  if the body corporate is a corporate agent—a director or senior manager of the corporate agent.

[directors and senior managers of corporate agents]

(4)     Schedule 2, page 10, after proposed item 9B, insert:

9C  Paragraphs 25(1)(c) to (e)

Repeal the paragraphs, substitute:

                     (c)  in a case where the person is an individual:

                              (i)  the individual has been or becomes bankrupt; or

                             (ii)  the individual has applied to take the benefit of a law for the relief of bankrupt or insolvent debtors; or

                            (iii)  the individual has compounded with his or her creditors; or

                     (d)  in a case where the person is a corporate agent:

                              (i)  the corporate agent knows, or has reasonable grounds to suspect, that a person who is, or is acting as, a director or senior manager of the corporate agent is a disqualified person; or

                             (ii)  a receiver, or a receiver and manager, has been appointed in respect of property owned by the corporate agent; or

                            (iii)  an administrator has been appointed in respect of the corporate agent; or

                            (iv)  a provisional liquidator has been appointed in respect of the corporate agent; or

                             (v)  the corporate agent has begun to be wound up; or

[directors and senior managers of corporate agents]

(5)     Schedule 2, page 10, after proposed item 9C, insert:

9D  Subsection 25A(1)

Omit “or (c)”, substitute “, (c) or (d)”.

9E  Subparagraph 25A(5)(a)(iii)

Omit “and”, substitute “or”.

9F  At the end of paragraph 25A(5)(a)

Add:

                     ; or (iv)  if the person is, or is acting as, a person referred to in paragraph 24(1)(d)—to the corporate agent concerned, and to any foreign general insurer for which the agent is the corporate agent; and

[directors and senior managers of corporate agents]

(6)     Schedule 2, page 10, after proposed item 9F, insert:

9G  Subsections 26(6) and (8)

Omit “or authorised NOHC”, substitute “, authorised NOHC or corporate agent”.

[directors and senior managers of corporate agents]

(7)     Schedule 2, page 10, after proposed item 9G, insert:

9H  At the end of subsection 27(1)

Add:

               ; or (d)  a director or senior manager of a corporate agent.

Note:       The heading to section 27 is altered by omitting “ or authorised NOHC ” and substituting “ , authorised NOHC or corporate agent ”.

9J  Subsection 27(2)

Omit “or authorised NOHC”, substitute “, authorised NOHC or corporate agent”.

9K  Paragraph 27(2)(b)

Before “does not meet”, insert “if the person is an individual—”.

9L  Subsection 27(3)

Omit “or authorised NOHC”, substitute “, authorised NOHC or corporate agent”.

9M  Paragraph 27(3)(b)

Omit “or NOHC”, substitute “, NOHC or agent”.

9N  Subsection 27(3B)

Omit “or an authorised NOHC”, substitute “, authorised NOHC or corporate agent”.

9P  Subsection 27(5)

Omit “or authorised NOHC”, substitute “, authorised NOHC or corporate agent”.

9Q  Subsection 27(5)

Omit “or NOHC”, substitute “, NOHC or agent”.

9R  After subsection 27(5B)

Insert:

       (5BA)  The power of a corporate agent to comply with a direction under this section may be exercised on behalf of the agent as set out in the table:

 

Power to comply with a direction

Item

Who may exercise the power

How the power may be exercised

1

The chair of the board of directors of the agent

by signing a written notice.

2

A majority of the directors of the agent (excluding any director who is the subject of the direction)

by jointly signing a written notice.

9S  Subsection 27(5C)

Omit “and (5B)”, substitute “, (5B) and (5BA)”.

9T  Subsection 27(5C)

Omit “or an authorised NOHC”, substitute “, authorised NOHC or corporate agent”.

9U  Subsection 27(7)

After “general insurer”, insert “or corporate agent”.

9V  Paragraphs 27(7)(a) and (b)

After “insurer”, insert “or agent”.

[directors and senior managers of corporate agents]

(8)     Schedule 2, item 49, page 20 (lines 28 and 29), omit “in Australia; or”, substitute “in Australia.”.

[kinds of entities that may be agents]

(9)     Schedule 2, item 49, page 21 (lines 1 and 2), omit paragraph 118(4)(c).

[kinds of entities that may be agents]

(10)   Schedule 2, page 21 (after line 2), after item 49, insert:

49A  Subsection 118(4A)

Repeal the subsection, substitute:

          (4A)  If:

                     (a)  a foreign general insurer has given written notice under subsection (4) of the appointment of an agent of the foreign general insurer and the notice specifies:

                              (i)  the name of the agent; and

                             (ii)  the place of residence, head office, registered office or principal office of the agent; and

                     (b)  a body corporate that is a subsidiary of the foreign general insurer is not incorporated in Australia; and

                     (c)  no written notice has been given to APRA of the appointment of an agent of the subsidiary;

the agent specified in the notice referred to in paragraph (a) is taken, from the time when that notice was or is given:

                     (d)  to have been, or to be, the agent of the subsidiary for the purposes of this Act; and

                     (e)  to have had, or to have, the place of residence, head office, registered office or principal office specified in that notice.

[addresses of corporate agents]

(11)   Schedule 2, item 52, page 21 (line 13), omit “in Australia; or”, substitute “in Australia.”.

[kinds of entities that may be agents]

(12)   Schedule 2, item 52, page 21 (lines 14 and 15), omit paragraph 118(6)(c).

[kinds of entities that may be agents]