APRA disqualifies Milan Vukelic
The Australian Prudential Regulation Authority (APRA) has disqualified Milan Vukelic from being or acting as a director or senior manager of a general insurer, authorised non-operating holding company or agent of a foreign general insurer.
From 1997 to 2002, Vukelic was the London-based Chief Executive Officer (CEO) of the Alternative Solutions division, General Reinsurance Corporation. Alternative Solutions was a virtual business unit that was set up to develop and market financial reinsurance products.
When Vukelic was CEO, the Alternative Solutions division negotiated financial reinsurance transactions with FAI Insurance Group, New Cap Reinsurance Corporation and Zurich Australian Insurance Limited. Vukelic played a significant role in the negotiations for each of the transactions and also gave approval for Gen Re to execute each of the transactions.
The APRA delegate found that, in relation to each transaction, Vukelic gave approval for Alternative Solutions to enter into the transactions despite being aware that they would be used to present false or misleading information in published financial statements and mislead auditors and APRA.
APRA had previously disqualified Vukelic in 2004 in relation to financial reinsurance matters. However, this decision was overturned on review on the grounds that there was insufficient evidence of his involvement in the transactions to support a disqualification decision.
However, during its investigation into General Reinsurance Australia which commenced in April 2005, APRA obtained additional information regarding Vukelic’s conduct in relation to FAI Insurance Group, as well as new information about his conduct in relation to New Cap Reinsurance Corporation and Zurich Australian Insurance Limited, that demonstrated that he was not a fit and proper person to hold a senior position within the insurance industry in Australia.
APRA has advised the Financial Services Authority (FSA) in the United Kingdom of its decision. A copy of the Inspector’s report for General Reinsurance Australia and disqualification register is available on APRA’s website.
26-Jul-2007