The Australian Prudential Regulation Authority (APRA) has announced the disqualification of Mr Milan Vukelic from being or acting as a Director or senior manager of a general insurer or authorised non-operating holding company, or a senior manager or agent of a foreign general insurer in Australia.

Mr Vukelic was employed by the General Re (GR) group of reinsurers and was involved in the implementation of a financial reinsurance transaction between the group’s Australian subsidiary, General & Cologne Reinsurance Australia (GCRA), and FAI Limited (FAI). The arrangement, which improperly boosted FAI’s 1997/98 Profit and Loss, was disguised as a number of traditional reinsurance transactions with the risks for GCRA removed through side letters.

Mr Vukelic is currently the Chief Executive Officer of the London-based Faraday Group (Faraday), which encompasses Faraday Underwriting and Faraday Reinsurance Co. Ltd. Faraday is a member of the GR group, a wholly-owned subsidiary of Berkshire Hathaway.

APRA has advised the Financial Services Authority in the United Kingdom of its decision.

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.