TO: Sovereign Insurance Australia Pty Ltd ABN 85 138 079 286 (the general insurer) 263 Albany Highway, Victoria Park WA 6100

SINCE

APRA issued to the general insurer an Authorisation to carry on insurance business in Australia under subsection 12(1) of the Insurance Act 1973 (the Act), on 1 November 2009 (the Authorisation); and
the Authorisation is subject to conditions,

I, Louis Serret, a delegate of APRA, under paragraph 13(1)(b) of the Act, REVOKE those conditions specified in the attached Schedule.

This Notice takes effect on 1 January 2018. Dated: 28 November 2017

[Signed]

Louis Serret

Acting Executive General Manager Specialised Institutions Division

Interpretation Document ID: 228493

In this Notice

APRA means the Australian Prudential Regulation Authority.

insurance business has the meaning given in section 3 of the Act.

Note 1 Under subsection 13(1) of the Act, APRA may, at any time, by written notice to the general insurer

impose conditions or additional conditions or vary or revoke conditions imposed on the insurer's authorisation under section 12 of the Act. The conditions must relate to prudential matters.

Note 2 Under subsection 13(4) of the Act, if APRA revokes conditions on a general insurer's authorisation,

APRA must give written notice to the insurer and ensure that notice that the action has been taken is published

in the Gazette.

Note 3 Under subsection 14(1) of the Act, a general insurer commits an offence if:

(a) the insurer does an act or fails to do an act; and

(b) doing the act or failing to do the act results in a contravention of a condition of the insurer's authorisation under section 12 of the Act; and

(c) there is no determination in force under subsection 7(1) of the Act, that subsection 14(1) of the Act does not apply to the insurer.

The maximum penalty is 300 penalty units. Under subsection 14(1A) of the Act, where an individual commits an offence against subsection 14(1) of the Act, because of Part 2.4 of the Criminal Code or commits an offence under Part 2.4 of the Criminal Code in relation to an offence against subsection 14(1) of the Act, the individual is punishable, on conviction, by a fine not exceeding 60 penalty units. Under subsection 14(2) of the Act, an offence against section 14 of the Act, is an offence of strict liability.

Schedule - the conditions which are being revoked

1. The Applicant may only carry on insurance business in Australia for the purpose of:

Undertaking liability under contracts of Consumer Credit Insurance (excluding life cover) and Motor Vehicle Guaranteed Asset Protection (GAP) Insurance issued to customers of the John Hughes Group in connection with the Group’s sale or financing of motor vehicles; and