Insurance Acquisitions And Takeovers Act 1991 Decision-Making Principles Idm 1/1992 (Cth)

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   2^nd 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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