Govt extends APRA's reach into life
The Federal Government has moved to increase the enforcement powers of the Australian Prudential Regulation Authority (APRA) by bringing non-operating holding companies (NOHCs) owned by life insurers within the ambit of the regulator in the same fashion as those owned by banks and general insurers.
The move to extend APRA’s jurisdictional reach was announced by the Assistant Treasurer, Chris Bowen, and the Minister for Superannuation and Corporate Law, Senator Nick Sherry.
The two ministers said the move would enhance the power of the Federal Court to issue injunctions on prudential matters.
They said the legislation would remove a gap which has existed in the prudential regulation regime by ensuring that non-operating holding companies were regulated.
APRA currently regulates the NOHC of general insurers and authorised deposit-taking institutions, but under the new legislation it will have the power to register and supervise the NOHCs of life insurance companies and enforce their compliance with prudential requirements.
The ministers said the passage of the bill would mean APRA is able to seek a consistent and comprehensive range of injunctions from the Federal Court on prudential matters, and this power would apply to banks, general insurance, life insurance and superannuation.
AUTHOR
Mike Taylor
Recommended for you
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
