The Australian Prudential Regulation Authority (APRA) has announced the disqualification of Mr Dominic Fodera from being or acting as a director or senior manager of a general insurer under the Insurance Act 1973.
Mr Fodera held various senior positions at HIH from 1995 to March 2001 including, at various times- Group Chief Financial Officer, HIH Finance Director and Chief Operating Officer.
A delegate of APRA found that during the period 1998 to 2000 there were a number of instances where Mr Fodera failed to disclose to HIH’s Board and auditors material information and advice. He did so, knowing that, if this information was appropriately assessed and accounted for, it would have resulted in a more accurate but far less favourable financial condition and solvency position for HIH.
APRA’s Deputy Chairman, Mr Ross Jones, said that the regulator expects the senior management of authorised insurers to ensure that financial arrangements are properly reported and booked, and that boards, auditors and APRA are fully informed about any matters likely to materially affect an insurer’s financial position.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.0 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.