The Federal Government has announced new measures to regulate the non-operating holding companies of life insurers – a move which will give courts more power to issue injunctions on prudential matters.

The Government announced this morning it will introduce legislation intended to remove a gap in the prudential regulation regime overseen by APRA.

Previously APRA supervision was limited to regulation of the non-operating holding companies of general insurers and authorised deposit-taking (ADI) institutions.

Corporate Law Minister Nick Sherry says it’s important that the regulator “has the tools at its disposal to effectively regulate for today’s corporate structures. This is good news for the life insurance industry and its policyholders.”

The legislation will allow APRA to seek a consistent range of injunctions from the Federal Court on prudential matters across ADI institutions, general insurance, life insurance and superannuation.