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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