Regulatory AlertsLPG 260 Conflicts of Interest Under Section 48
The Australian Prudential Regulation Authority issued this guide to assist life insurers in complying with Section 48 of the Life Insurance Act 1995, which mandates that directors prioritize policy owner interests over shareholder interests in statutory funds. The document outlines specific scenarios where conflicts may arise, including asset apportionment, investment management, and related-party transactions, requiring directors to ensure equitable treatment and objective justification. It further prescribes governance practices for identifying, managing, and documenting these conflicts to maintain regulatory compliance and protect policy owner rights.
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