Life insurance (prudential standard) determination No. 5 of 2006 Variation to Prudential Standard LPS 510 Governance (Cth)

Life insurance (prudential standard) determination No. 5 of 2006

Variation to Prudential Standard LPS 510 Governance

Life Insurance Act 1995

I, John Francis Laker, Chair of APRA, under subsection 230A(5) of the Life Insurance Act 1995 (the Act), VARY prudential standard LPS 510 (determined on 5 May 2006 to take effect from 1 October 2006) in the manner set out in the Schedule.

This instrument takes effect on the date of registration on the Federal Register of Legislative Instruments.

Dated   19 December 2006

[Signed]

John Francis Laker

Chair

Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

Note 1    Life insurance (prudential standard) determination No. 2 of 2006 determined LPS 510.

Schedule

Variation to Prudential Standard LPS 510

a.   In paragraph 30 delete the words “which assists the Board by providing an objective non-executive review of the effectiveness of the life company’s financial reporting and risk management framework”.

b.   Delete the existing second sentence of paragraph 30 and replace it with the text of the existing paragraph 31.

c.   Delete the text of the existing paragraph 31 and replace it with the text of the existing second sentence of paragraph 30.

d.   Add a new third sentence to the new paragraph 30 that reads “Other Board Committees may have risk management responsibilities provided the Audit Committee retains the functions prescribed by section 92 of the Act”.

e.   In line 2 of paragraph 6 of Attachment B, delete the numbers and letters “4(a), 4(b) and 4(c)” and substitute the numbers and letters “5(a), 5(b) and 5(c)”.