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IDM 1/1992 Principles as made
These Principles set out criteria for 'fit and proper person', 'undue concentration of power' and 'contrary to the national interest' that the Minister must have regard to when assessing a triggered proposal.
Administered by: Treasury
Registered 01 Dec 2008
Gazetted 03 Apr 1992

 

COMMONWEALTH OF AUSTRALIA

 

Insurance Acquisitions and Takeovers Act 1991

 

DECISION-MAKING PRINCIPLES

IDM 1/1992

 

I, JOHN DAWKINS, Treasurer, make the following principles under
subsection 65 (1) of the Insurance Acquisition and Takeovers Act 1991.

            Dated   2nd April 1992

 

 

JOHN DAWKINS
TREASURER

 

            Commencement

                        1.  These principals commence on 4 April 1992.

 

            Interpretation

                        2.  In these principals:

            “decision-making principals” has the same meaning as in section 65 of

            the Act;
            “the Act” means the Insurance Acquisitions and Takeovers Act 1991.

 

            Application

                        3.  Clauses 4, 5 and 6 apply then the Minister is complying,
            under subsection 65 (2) of the Act, with decision-making principles.

 

 

 

 

 

 

 

            Fit and proper person

                        4.  In considering whether a person is a fit and proper person,
            the Minister must have regard to:
                        (a)  whether the person is a disqualified person for the
                               purpose of section 117A of the Insurance Act 1973 or
                               section 146A of the Life Insurance Act 1945; and
                        (b)  whether the person has been found guilty of an offence
                               against or arising out of the insurance law of any country;
                               and
                        (c)  whether the person has been found guilty of an offence
                               involving dishonest conduct in any country; and
                        (d)  whether the person has been in a position of influence
                               over, or taken part in, the management of a company that
                               has been declared insolvent or has entered into an
                               arrangement with its creditors; and
                        (e)  all other matters that the Minister considers relevant.



            Undue concentration of power

                        5.  In considering whether a proposal is likely to unduly
            concentrate economic power in the Australian general insurance
            industry, the Australian life insurance industry or the Australian
            financial system, the Minister must have regard to:

                        (a)  whether the proposal could adversely affect:
                                    (i)  the supply or pricing of insurance services to the

                                         Australian market; or

                                    (ii)  the supply or pricing of other financial services to

                                           the Australian market; and

                        (b)  all other matters that the Minister considers relevant.


 

            Contrary to the national interest

                        6.  In considering whether a proposal is contrary to the

            national interest, the Minister must have regard to:

                        (a)  whether the proposal could adversely affect the stability

                              and strength of the Australian general insurance industry,

                              the Australian life insurance industry, or the Australian

                              financial system; and

                        (b)  whether the proposal could adversely affect the interests

                               of policy holders of an Australian-registered insurance

                               company; and

                        (c)  whether the proposal in contrary to Australia’s foreign

                               investment policy; and

                        (d)  all other matters that the Minister considers relevant.

 

 

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