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Thursday, 25 August 1983
Page: 279

Mr O'KEEFE —My question is directed to the Treasurer. Is it a fact that Andrew Stathis of Bishopsgate Insurance Australia Ltd was able to transfer $6.7m overseas with Reserve Bank of Australia approval? Is it a fact that insurance companies enjoy an exemption under Reserve Bank exchange control regulations which is not given to any other industry? Is this a dangerous monetary problem? Will the Treasurer review this policy with a view to altering this procedure to give protection to Australian investors and shareholders?

Mr KEATING —The Government is proposing changes to the Insurance Act to effect a number of prudential requirements, including solvency ratios and the like. What we have on our hands with the Bishopsgate company is a case of clear fraud which is now in the hands of the appropriate authorities. The Government is examining all the issues which relate to the Bishopsgate insurance fraud, and I will take aboard the thrust of the honourable gentleman's question in that examination.