Appointment of Commissioner for the commission of inquiry into the failure of the HIH Insurance group (Cth)

ELIZABETH THE SECOND, by the Grace of God Queen of Australia and Her other Realms and Territories, Head of the Commonwealth:

TO the Honourable Justice Neville John Owen

WHEREAS it is desired to have an inquiry into certain matters relating to the failure of HIH Insurance Group ('HIH'):

BY these Letters Patent issued in Our name by Our Governor-General of the Commonwealth of Australia on the advice of the Federal Executive Council and pursuant to the Constitution of the Commonwealth of Australia and the Royal Commissions Act 1902 and other enabling powers, We appoint you to be a Commissioner to inquire into the reasons for and the circumstances surrounding the failure of HIH prior to the appointment of the provisional liquidators on 15 March 2001.

In particular, We direct that you inquire into:

(a) whether, and if so the extent to which, decisions or actions of HIH or any of its directors, officers, employees, auditors, actuaries, advisers or agents: (i) contributed to the failure of HIH; or (ii) involved undesirable corporate governance practices, including any failure to make desirable disclosures regarding the financial position of HIH; (b) whether those decisions or actions might have constituted a breach of any law of the Commonwealth, a State or a Territory and, if so, whether the question of criminal or other legal proceedings should be referred to the relevant Commonwealth, State or Territory agency; (c) the appropriateness of the manner in which powers were exercised and responsibilities and obligations were discharged under Commonwealth laws; (d) the appropriateness of the manner in which powers were exercised and responsibilities and obligations were discharged under State or Territory laws; and (e) the adequacy and appropriateness of arrangements for the regulation and prudential supervision of general insurance at Commonwealth, State and Territory levels, taking into account your findings in relation to the matters referred to in the preceding paragraphs and other relevant matters; including (i) Commonwealth arrangements before and after the Financial System Inquiry reforms; and (ii) different State and Territory statutory insurance and tax regimes.