Funeral Funds Act 1979 Funeral Funds Regulation 1994 (1994-417) [GG No 108 of 26.8.1994] (NSW)

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1994—No. 417

FUNERAL FUNDS ACT 1979—REGULATION
(Funeral Funds Regulation 1994)
NEW SOUTH WALES

[Published in Gazette No. I08 of 26 August 1994]
HIS Excellency the Governor, with the advice of the Executive Council, and in pursuance of the Funeral Funds Act 1979, has been pleased to make the Regulation set forth hereunder.
WENDY MACHIN, MP

Minister for Consumer Affairs.

PART 1—PRELIMINARY
Citation
1. This Regulation may be cited as the Funeral Funds Regulation

1994.
Commencement

2. This Regulation commences on 1 September 1994.

Definitions
3. (1) In this Regulation:
“approved form” means a form approved for the time being by the
Registrar;
“the Act” means the Funeral Funds Act 1979.
(2) In this Regulation, a reference to a Form is a reference to a Form

set out in Schedule 3.

1994—No. 417

PART 2—FUNERAL CONTRIBUTION FUNDS

Additional documents to accompany applications for registration
(sec. 12)
4. (1) For the purposes of section 12 (2) (b) (iii) of the Act, the following documents are prescribed as documents that must accompany an application for registration:

(a) a statement of the capital structure of the company (including the capital paid-up and the nature and value of the shares);
(b) a copy of each agreement made with a person for the carrying out of funeral services for the company;
(c) a copy of each agreement made with a person for the collection of contributions on behalf of the company;
(d) a description of the types of funeral services proposed to be provided by the company;
(e) a statement of the company’s proposed records with respect to membership, accounts and statistics;
(f) an actuarial assessment of the adequacy of the records referred to in paragraph (e) for the proper conduct of the funeral contribution business of the company;
(g) a copy of the tables of contribution rates proposed to be used by the company, together with a statement of the bases and formulas from which those rates have been calculated;
(h) actuarial projections of the expected income and expenditure of the company over the next 10 years, prepared in accordance with Schedule 1;
(i) a statement of the proposed manner of providing for any financial deficiencies, including financial deficiencies appearing from the projections referred to in paragraph (h);

(j) a statement of the proposed method of offsetting any overdue contributions against the amount to be paid out on a contributorship if the contributor ceases contributing to the fund before any contingency occurs on which a benefit is required to be provided.
(2) An actuarial assessment or projection referred to in subclause (1) must contain a statement to the effect that the assessment or projection has been prepared by an actuary in the knowledge of the aims of the company and of the types of contributions agreements proposed to be transacted by the company.
1994—No. 417

Requirements for registration (sec. 13)
5. (1) For the purposes of section 13 (1) (g) of the Act, $5,000 is prescribed as the maximum payment (by way of a funeral benefit) that a company may provide for in its rules, being the amount above which the company ceases to be entitled to be registered to carry on contributory funeral benefit business.
(2) For the purposes of section 13 (1) (i) of the Act, the rules of a company proposing to carry on contributory funeral benefit business must provide that on the death of any person:

(a)

who has contributed for at least 10 years to the funeral contribution fund proposed to be constituted by the company; and
(b) who has ceased before his or her death so to contribute,

the company will pay an amount, equal to the paid-up value of the person’s contributions, towards the cost of a funeral service for the person to be provided under an agreement between the company and a funeral director.
(3) For the purposes of this clause, the paid-up value of contributions paid by a person is taken to be:

(a)

the mount certified by an actuary to be the equitable share to which the person is entitled in the funeral contribution fund proposed to be constituted by the company; or

(b)

the mount calculated in accordance with a formula certified by an actuary to be a formula from which that share can be calculated,

having regard to the contributions paid and benefits received by the
person before the person ceased contributing to the fund.
Documents to accompany application for approval of alteration or addition to rules (sec. 15)
6. For the purposes of section 15 (2) of the Act, the following documents must accompany an application for approval of an alteration or addition to the rules of a funeral contributions fund:

(a)

2 copies of a record of the alteration or addition, each signed by a director, and by the secretary, of the fund;

(b)

a statement, signed by an actuary, that the alteration or addition will not prejudice the stability of the fund.

1994—No. 417

Limitations on certain management expenses (sec. 21)
7. For the purposes of section 21 (1) of the Act, the maximum mount that a funeral contribution fund may pay for the purposes referred to in paragraphs (a), (b) and (c) of that subsection is 2 per cent of the income accrued from the investments of the fund.
Additional particulars in returns by funeral contribution funds
(sec. 24)
8. For the purposes of section 24 (2) (e) of the Act, the following additional particulars must be contained in a funeral contribution fund’s annual return:

(a)

the number of persons who were contributing to the fund on the first day of the fund’s financial year;

(b)

the number of persons who began contributing to the fund during the fund’s financial year;

(c)

the numbers of service funeral benefits provided during the fund’s financial year:
(i) for single cover contributors to the fund; and
(ii) for family cover contributors to the fund;

(d)

the numbers of cash funeral benefits provided during the fund’s financial year:
(i) for single cover contributors to the fund; and
(ii) for family cover contributors to the fund;

(e)

the number of persons who ceased contributing to the fund during the fund’s financial year otherwise than by reason of the provision of a funeral benefit;

(f)

the number of persons who were contributing to the fund on the last day of the fund’s financial year.
Additional particulars to appear in register (sec. 26)
9. (1) If:

(a)

a person ceases to be a contributor to a funeral contributions fund; and

(b)

an amount equal to the paid-up value of the person’s contributions is paid towards the cost of a funeral service for that person,
the fund must enter in its register of contributors a statement of the
amount so paid.
1994—No. 417

(2) The particulars required by this clause are prescribed for the purposes of section 26 (2) (d) of the Act.
Contents of abstract of actuary’s report (sec. 28)
10. For the purposes of section 28 (2) of the Act, an abstract of an actuary’s report must be prepared in the manner, and must contain the particulars, specified in Schedule 2, and must do so with the necessary statements and information appearing in the same order, and with the same numbers and letters, as Schedule 2.
PART 3—PRE-ARRANGED FUNERAL FUNDS

Documents to accompany application for registration of trustees
(sec. 35)
11. For the purposes of section 35 (2) (b) of the Act, the prescribed documents to accompany an application for registration as trustees of trust funds are as follows:

(a)

a copy of each agreement (if any) made with a person who proposes to supply funeral services under pre-arranged contracts;
(b) a copy of the bond referred to in clause 12.

Qualifications for registration (sec. 36)
12. For the purposes of section 36 (1) (c) of the Act, the prescribed qualification for registration as a trustee of trust funds is that the corporation or group of individuals concerned has entered into a bond for an amount that, in the opinion of the Registrar, is sufficient to secure the due administration of the trust funds for which the corporation or group proposes to act as trustee.
Prescribed manner of investment of trust funds (sec. 44)
13. For the purposes of section 44 (b) of the Act, money that is paid to a pre-arranged funeral fund under pre-arranged contracts may be invested in a master life insurance policy that has been issued, by a life insurance company registered under the Life Insurance Act 1945 of the Commonwealth, in respect of the lives of the persons to whom the pre-arranged contracts relate.

1994—No. 417

Maximum commission chargeable (sec. 46)
14. For the purposes of section 46 (b) of the Act, the maximum amount of commission to which a pre-arranged funeral fund is entitled is 2 per cent of the income accrued from investments under section 44 of the Act.
Particulars of funeral service to be contained in contract (sec. 51)
15. For the purposes of section 51 of the Act:

(a)

the funeral services to which that section applies are those specified in the Table to this clause; and

(b)

the particulars prescribed in relation to any such service are those specified in that Table in relation to that service.

TABLE

Supply of coffin or casket ..... The principal material to be used in the coffin or

casket

The type of lid on, and the method of closure of,
the coffin or casket
The types of any external or internal trimmings
on or in the coffin or casket
The finish to be applied to the external surfaces of
the coffin or casket

Provision of vehicles ............. The classes of vehicles
The number of vehicles in each class
Conveyance of persons and the The maximum distance over which conveyance

remains of the deceased ..... will be provided
The maximum number of persons who will be

conveyed

The hours and days when conveyance will be
provided without additional charge

Disposal of the remains of the Whether disposal is to be by way of burial or

deceased ........................... cremation

Provision of memorial or urn. The design and material of the memorial or urn
Accounts and register
16. (1) A pre-arranged funeral fund must keep accounts of all trust funds under pre-arranged contracts for which the fund acts as trustee in such a manner as to disclose their true position and to enable the accounts to be conveniently and properly audited.
1994—No. 417

(2) In particular, the accounts must contain, in relation to each pre-arranged contract for which the fund acts as trustee:
(a) the name and address of each person entering that contract; and
(b) the date and file reference of that contract; and

(c)

particulars of each amount of money paid or other valuable consideration given in respect of which the fund acts as trustee.
(3) A pre-arranged funeral fund:

(a)

must keep a register of investments in or to the effect of the approved form; and

(b)

within 7 days after purchasing or realising an investment, or receiving interest on it, must enter details of that transaction in the register.
Maximum penalty: 2 penalty units.

Independent auditor to prepare auditor's report
17. (1) A pre-arranged funeral fund must cause an independent auditor:

(a) to audit the records which the fund is required to keep under any law, including the accounts of the fund; and
(b) to furnish it with a report of that audit within 3 months after the last day of the fund's financial year.

(2) A pre-arranged funeral fund must, within 7 days of receiving a report under subclause (1) (b), lodge with the Registrar:
(a) a copy of the report; and

(b)

a copy of every financial statement on which the report is based, together with every explanatory note which forms part of that

statement .

Maximum penalty: 2 penalty units.
Qualifications as an independent auditor
18. (1) A person is not qualified to be an auditor of a pre-arranged funeral fund unless the person is a registered company auditor (within the meaning of the Corporations Law).
(2) An auditor of a pre-arranged funeral fund is not an independent auditor:

(a)

if (otherwise than as auditor) the person is an officer or employee of the fund; or

(b)

if the person is a partner, employer or employee of a person who is (otherwise than as an auditor) an officer or employee of the fund.

1994—No. 417

(3) Appointment as the public officer of a pre-arranged funeral fund for the purposes of any law relating to taxation does not in itself render a person unqualified to be an independent auditor of the fund.
Form and content of auditors’ reports
19. An auditor’s report on a pre-arranged funeral fund must include statements by the auditor as to the following:

(a)

whether the auditor has obtained all the information and explanations which, to the best of his or her knowledge and belief, were necessary for the purposes of the audit;

(b)

whether the financial statements on which the auditor based the report are in agreement with the fund’s books of account and returns;

(c)

whether, in his or her opinion, proper books of account have been kept by the fund;

(d)

whether, in his or her opinion and to the best of his or her information and according to the explanations given to him or her, the accounts give the information required by or under the Act in the manner so required and disclose a true and fair view of the state of the trust accounts as at the end of the fund’s financial year;

(e)

whether, in his or her opinion, the records which the fund is required to keep by or under the Act have been properly kept;
(f) whether the requirements of the law relating to the administration
of trust funds, including the requirements of the Act and this
Regulation, have been observed.
Access to books
20. An auditor of a pre-arranged funeral fund is entitled:

(a)

to be given access at all times to the books, accounts, vouchers, securities and documents of the fund; and

(b)

to be given by the fund such information and explanations as the auditor thinks necessary for the performance of the duties of the auditor.
1994—No. 417

Annual returns to be furnished
21. Within 3 months after the last day of a pre-arranged funeral fund’s financial year, or within such further time as the Registrar may authorise, the fund must lodge with the Registrar a return specifying the following particulars:

(a)

the number of pre-arranged contracts in respect of which the fund held money or other valuable consideration, as at the first day of that year;

(b)

the number of pre-arranged contracts in respect of which the fund commenced holding money or other valuable consideration during that year;

(c)

the numbers of pre-arranged contracts in respect of which the fund ceased holding money or other valuable consideration during that year, separately specified according to whether it ceased to hold that money or consideration pursuant to section 47 of the Act or pursuant to section 48 of the Act;

(d)

the number of pre-arranged contracts that were cancelled pursuant to section 49 of the Act during that year (being contracts in respect of which the fund was holding money or other valuable consideration when they were cancelled);

(e)

the number of pre-arranged contracts in respect of which the fund held money or other valuable consideration, as at the last day of that year.
Maximum penalty: 2 penalty units.

Funds to provide information in certain cases
22. (1) The Registrar, by notice in writing served on a pre-arranged funeral fund or on any officer or agent of the fund, may require the fund or that officer or agent to lodge with the Registrar, within such period as is specified in the notice, any one or more of the following:

(a)

such particulars as may be so specified with respect to existing or former pre-arranged contracts;

(b)

such particulars as may be so specified with respect to payments by the fund of amounts held in trust by it;

(c)

such further particulars with respect to the fund, or to any of its officers or agents or to its affairs, as may be so specified.

1994—No. 417

(2) A person must not, without reasonable excuse, fail to comply with a requirement under this clause.
Maximum penalty: 2 penalty units.
(3) Information provided by a person in response to a requirement
under this clause is not admissible in evidence in any proceedings for an offence taken against that person, other than the offence of contravening subclause (2), so long as the person providing the information objected to doing so, at the time of providing it, on the ground that it might tend to incriminate the person.
Public inspection of annual returns
23. On being requested to do so by a person attending the Registrar’s office during the ordinary business hours of that office, and on the payment by the person of the appropriate fee, the Registrar:

(a)

must make available for inspection by the person any return lodged with the Registrar under clause 21; and

(b)

must provide the person with a copy of any such return, or of such part of the return as the person specifies, certified under the Registrar’s hand and seal to be a true copy.

PART 4—MISCELLANEOUS

Fees
24. The fees to be taken in the office of the Registrar are as set out in the Table to this clause.

TABLE

For registering a funeral contribution fund ............................. $300.00
For registering a pre-arranged funeral fund ............................ $300.00
For approving an alteration of or addition to the rules of a funeral

contribution fund............................................................. $100.00

For confirming a scheme of transfer or amalgamation of the contributory funeral benefit business of a funeral contribution fund...............................................................................

$40.00
For confirming a scheme of transfer of trust funds under

pre-arranged contracts....................................................... $40.00

For receiving an application for the enlargement or abridgment of

time for the doing of any act required under the Act to be done $40.00

For receiving a return and any accompanying documents referred to

in section 24 (1) of the Act or a return referred to in clause 21 $40.00
1994—No. 417

For receiving a copy of an auditor's report on a pre-arranged

funeral fund under clause 17 (2) .................... $40.00

For providing a copy of a return or document, or part of a return or document, certified under the hand and seal of the Registrar to be a true copy ....................................................................

$1.00 per page

provided that the total fee does not exceed ................. $30

For confirming the appointment of a substitute or additional trustee
under section 38 of the Act ............................................. $40.00

Repeal
25. (1) The Funeral Funds Regulation 1980 is repealed.
(2) Any act, matter or thing that, immediately before the repeal of the

Funeral Funds Regulation 1980, had effect under that Regulation is taken to have effect under this Regulation.

1994—No. 417

SCHEDULE 1—ACTUARIAL PROJECTIONS

(CI. 4)

Actuarial projections
1. (1) The actuarial projections referred to in clause 4 (1) (h) of this Regulation must
include:

(a)

a “worst case” projection based on the assumption that a conservative expansion in the company’s funeral contribution business (that is. the minimum expansion necessary to ensure the viability of the company) occurs during each of the years to which the projection relates; and

(b)

a “best case’’ projection based on the assumption that a reasonably rapid expansion in the company’s funeral contribution business occurs during each of the years to which the projection relates.

(2) Each projection:

(a)

must contain details of the basis of the projection (including the assumptions used as a basis for determining the rate of expansion in the company’s funeral contribution business); and

(b)

must contain summaries of statistics for family cover and single cover funeral contribution business; and

(c)

must separately specify the gross contributions for family cover and single cover funeral contribution business payable in each of the years of the company’s projected operations; and

(d)

must contain a projected revenue account for each of the years of the company’s projected operations; and

(e)

must contain a projected balance sheet as at the end of each of the years of the company’s projected operations; and

(f)

must contain a projected valuation balance sheet as at the end of each of the years of the company’s projected operations.
Summaries of statistics
2. (1) The summaries of statistics referred to in clause 1 (2) (b) of this Schedule must separately specify in respect of family cover and single cover funeral contribution business:
(a) the number of contributors; and

(b) the total amount of benefits for which the contributors to the fund are contributing, based on the retail prices of the services included in those benefits, but excluding any contingent benefits in respect of the children of the contributors.
(2) The summaries of statistics referred to in clause 1 (2) (b) of this Schedule must take into account:

(a)

all business existing at the beginning of each of the years to which the projection relates; and
1994—No. 417

(b) all business acquired during each of those years; and

(c)

all business discontinued during each of those years, classified according to the cause of the discontinuation.

Projected revenue account
3. The projected revenue account must distinguish between the following types of income and expenditure:
(a) income derived from contributions;
(b) income derived from investments;
(c) income derived from other sources;
(d) claims;
(e) new contributorship commissions;
(f) other expenses involved in the acquisition of new contributorships;
(g) contributorship renewal commissions;
(h) other expenses involved in the renewal of existing contributorships;
(i) income tax.
SCHEDULE 2—ACTUARIAL ABSTRACTS

(Cl. 10)

Definitions
1. In this Schedule:
“contribution term”, in relation to a contract with a contributor, means the period

during which contributions are payable under the contract;

“date” of a valuation means the date as at which the valuation is made;
“inter-valuation period”, in relation to an abstract prepared for the purposes of
section 28 (2) of the Act, means the period that ends on the date of the valuation
included in the report on which the abstract is based and which begins:

(a)

if a valuation has previously been made for the purposes of an investigation under section 28 (1) of the Act—on the date of the previous valuation; or

(b)

if no such valuation has previously been made, but a like valuation has been made—on the date of the like valuation; or

(c)

if no such valuation has previously been made and a like valuation has not been made—on the date on which the company to which the valuation relates began carrying on contributory funeral benefit business;

“net contributions”, in relation to a valuation, means those contributions for which
credit is taken in the valuation.

1994—No. 417

Statements to appear in abstract
2. The following statements must be prepared in the approved form and must be
annexed to every abstract furnished for the purposes of section 28 (2) of the Act:
(a) a consolidated revenue account for the inter-valuation period;
(b) a summary and valuation of the contributors to the fund at the valuation date;
(c) a valuation balance sheet;

(d)

a statement of the rules of the fund that provide for the fund, and that define the benefits payable by, and the contributions payable to, the fund;
(e) a summary of the contributorship to the fund.

Information to appear in abstract
3. (1) The following information must be shown in every abstract prepared for the purposes of section 28 (2) of the Act:
(a) the valuation date;
(b) the general principles, and full details of the methods. adopted in the valuation;
(c) if, in the valuation:
(i) published tables were used of mortality or of any other contingencies (including family composition) on which payment of benefits or contributions depends—the name and date of those tables; or
(ii) unpublished tables were used of any of the contingencies referred to in subparagraph (i)—the matters in Form 1 (or the date of any previous abstract in which identical statements in or to the effect of Form I were made);

(d) the rate of interest assumed in the valuation in relation to the assets of the fund; (e) if. by the method of valuation, future expenses are allowed for by reserving a

(f)	the average rates of interest earned by the assets of the fund for each of the 5 proportion of annual contributions-that proponion;
years preceding the valuation date or, if the company registered as the fund was formed less than 5 years before that date, for each year, or part of a year, since that formation;
(g)	the total surplus or total deficiency arising during the inter-valuation period, including surplus sums transferred to reserve funds or other accounts during the period, and the amount of surplus or deficiency brought forward from the preceding valuation;
(h)	the means by which the surplus or deficiency brought forward from the previous valuation and the surplus or deficiency arising during the inter-valuation period have been dealt with;
(i)	the contribution rates (in tabular form, if practicable) in force at the valuation date and referred to the following determinants:

(i) whether the rates apply in respect of single lives or for family cover; and
(ii) the ages at entry of the Contributors;

(j)

the effect of a contributor's change in marital status on the contribution rate determined in respect of the contributor:
1994—No. 417

(k) the benefits to be provided and the retail values, at the valuation date, of those benefits, according to the contribution rates specified pursuant to paragraph (i);
(I) the changes that have occurred in contribution rates during the inter-valuation period and the dates of those changes.

(2) The statement of principles and methods referred to in subclause (I) (b) must include statements on the following matters:

(a)

whether the principles were determined by the memorandum of association of the fund or by its articles of association or by its other rules, or. if not, how the principles were determined;

(b)

the method by which the values of actuarial liabilities have been arrived at and how the ages at entry and contribution terms have been treated for the purposes of the valuation;

(c)

the methods by which the valuation ages and the future contribution terms have been treated for the purposes of the valuation;

(d)

if a proposed benefit is a funeral service, the future changes in the amount of the benefit which have been allowed for in the valuation;

(e)

if a proposed benefit is expressed as a cash amount, the rate and type of future bonus (if any) on the bonus that has been allowed for in the valuation, where, by the method of valuation, definite provision is made for future bonuses;

(f)

if the rules of the fund provide for increases on contributions—details of the future increases in contributions for which credit has been taken in the valuation;
(g) the method of allowing for the incidence of the Contribution income;
(h) the method of allowing for the frequency of contribution payments;
(i) the method of allowing for the immediate payment of benefits;
(j) the method of allowing for future expenses;

(k)

the method of allowing for present and possible future liabilities in respect of persons whose contributions have lapsed if those persons are not included in the valuation;

(l)

if the rules of the fund provide for the waiver of a contributor’s contributions during his or her disability or unemployment or during some other specified contingency—the method of allowing for liabilities in respect of present and possible future waivers of contributions;

(m)

whether, under the valuation method adopted, any contributorship would be treated as an asset, and what steps have been taken to eliminate any such asset from the valuation;

(n)

how the mortality experienced by the fund compares with the mortality assumed in the valuation.

Particular requirements as to calculation and presentation
4. (1) If. in an abstract prepared for the purposes of section 28 (2) of the Act or in a statement annexed to such an abstract, amounts of money are shown otherwise than as contribution rates, they must be shown to the nearest dollar.

1994—No. 417

(2) The information required under clause 3 of this Schedule must be identified with the numbers and letter of the clause, subclause and paragraph of this Schedule under which the information is required.
(3) In stating the proportion of contributions reserved as referred to in clause 3 (1) (e) of this Schedule, no credit may be taken for any adjustments made in order to ensure that no agreement to contribute to the fund is treated as an asset.
(4) In calculating the average rate of interest earned in any year, as stated for the purposes of clause 3 (1) (f) of this Schedule, the interest earned in that year must be divided by the mean fund of that year, where:

(a)

the interest earned in that year is taken as the whole of the investment income credited to the fund during that year; and

(b)

the mean fund of that year is ascertained by adding half of the value of the fund as it stood at the beginning of that year to half of the value of the fund as it stood at the end of that year, and deducting from that sum half the interest earned in that year.
Statements in actuarial abstracts
5. An abstract prepared for the purposes of section 28 (2) of the Act:

(a)

must be signed by the actuary who made the relevant investigation under section 28 (1) of the Act; and

(b)

must contain a statement, signed by the actuary, to the effect that the abstract is in accordance with the valuation report on which it purports to be based; and

(c)

if the actuary is a permanent officer of the fund concerned, must contain a statement, signed by the actuary, to the effect that the actuary is satisfied that the data on which the valuation is based is accurate; or
(d) if the actuary is not a permanent officer of the fund concerned, must contain:
(i) a statement, signed by the actuary, specifying the precautions the actuary has taken to ensure that the data on which the valuation is based is accurate; and
(ii) a statement, signed by a permanent officer of the fund, to the effect that the officer is satisfied that the data supplied to the actuary as the basis of the valuation is accurate.
1994—No. 417

I

1994—No. 417

NOTES

TABLE OF PROVISIONS

PART 1—PRELIMINARY

1. Citation
2. Commencement
3. Definitions

PART 2—FUNERAL CONTRIBUTION FUNDS

4. Additional documents to accompany applications for registration (sec. 12)
5. Requirements for registration (sec. 13)
6. Documents to accompany application for approval of alteration or addition to rules (sec. 15)
7. Limitations on certain management expenses (sec. 21)
8. Additional particulars in returns by funeral contribution funds (sec. 24)
9. Additional particulars to appear in register (sec. 26)
10. Contents of abstract of actuary’s report (sec. 28)

PART 3—PRE-ARRANGED FUNERAL FUNDS

11.  Documents to accompany application for registration of trustees (sec. 35)
12.  Qualifications for registration (sec. 36)
13.  Prescribed manner of investment of trust funds (sec. 44)
14.   Maximum commission chargeable (sec. 46)
15.  Particulars of funeral service to be contained in contract (sec. 51)
16.  Accounts and register
17.   Independent auditor to prepare auditor’s report
18.   Qualifications as an independent auditor
19.   Form and content of auditors’ reports
20.   Access to books
21.   Annual returns to be furnished
22.   Funds to provide information in certain cases
23.   Public inspection of annual returns

PART 4—MISCELLANEOUS

24. Fees
25. Repeal
SCHEDULE 1—ACTUARIAL PROJECTIONS
SCHEDULE 2—ACTUARIAL ABSTRACTS
SCHEDULE 3—FORMS
1994—No. 417
EXPLANATORY NOTE

The object of this Regulation is to repeal and remake the provisions of the Funeral Funds Regulation 1980 under the Funeral Funds Act 1979. The new Regulation deals with the following matters:

(a)

the documents to accompany an application for registration as a funeral contribution fund (clause 4);
(b) other requirements for registration as a funeral contribution fund (clause 5);

(c)

the documents to accompany an application for approval of an alteration or addition to the rules of a funeral contribution fund (clause 6);

(d)

limitations on certain management expenses of a funeral contribution fund (clause 7);
(e) particulars to be included in returns by funeral contribution funds (clause 8);

(f) particulars to appear in the register kept by a funeral contributions fund (clause 9);
(g) the contents of the abstract of an actuary’s report on a funeral contributions fund (clause 10);
(h) the documents to accompany an application for registration as trustees of a pre-arranged funeral fund (clause 11);
(i) qualifications to be held by persons seeking registration as trustees of a pre-arranged funeral fund (clause 12);

(j)

the manner in which the funds of a pre-arranged funeral fund may be invested (clause 13);

(k)

the maximum commission chargeable by a pre-arranged funeral fund (clause 14);
(1) the particulars to be included in a contract for a pre-arranged funeral (clause
15);
(m) financial accountability of a pre-arranged funeral fund (clause 16);
(n) the preparation of auditors’ reports on a pre-arranged funeral fund (clause 17);

(o)

the qualifications to be held by the auditor of a pre-arranged funeral fund (clause 18);

(p)

the form and content of an auditor’s report on a pre-arranged funeral fund (clause 19);

(q)

the access to financial records that is required to be given by a pre-arranged funeral fund to an auditor (clause 20);
(r) the furnishing of annual returns by a pre-arranged funeral fund (clause 21);

(s) the information to be provided by a pre-arranged funeral fund to the Registrar of Funeral Funds (clause 22);
(t) the public inspection of the annual returns of a pre-arranged funeral fund (clause 23);
(u) the fees chargeable under the Act (clause 24); (v) other formal matters (clauses 1, 2. 3 and 25).

1994—No. 417

This Regulation is made under the Funeral Funds Act 1979, including section 92 (the general regulation making power) and sections 12, 13, 15, 21, 24, 26, 28, 35, 36. 44. 46 and 51.
This Regulation is made in connection with the staged repeal of subordinate legislation under the Subordinate Legislation Act 1989.

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Citations

Funeral Funds Act 1979 - Funeral Funds Regulation 1994 (1994-417) [GG No 108 of 26.8.1994] (NSW)

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(a)	a statement of the capital structure of the company (including the capital paid-up and the nature and value of the shares);
(b)	a copy of each agreement made with a person for the carrying out of funeral services for the company;
(c)	a copy of each agreement made with a person for the collection of contributions on behalf of the company;
(d)	a description of the types of funeral services proposed to be provided by the company;
(e)	a statement of the company’s proposed records with respect to membership, accounts and statistics;
(f)	an actuarial assessment of the adequacy of the records referred to in paragraph (e) for the proper conduct of the funeral contribution business of the company;
(g)	a copy of the tables of contribution rates proposed to be used by the company, together with a statement of the bases and formulas from which those rates have been calculated;
(h)	actuarial projections of the expected income and expenditure of the company over the next 10 years, prepared in accordance with Schedule 1;

(a)	the mount certified by an actuary to be the equitable share to which the person is entitled in the funeral contribution fund proposed to be constituted by the company; or
(b)	the mount calculated in accordance with a formula certified by an actuary to be a formula from which that share can be calculated,

(a)	2 copies of a record of the alteration or addition, each signed by a director, and by the secretary, of the fund;
(b)	a statement, signed by an actuary, that the alteration or addition will not prejudice the stability of the fund.

(a)	the number of persons who were contributing to the fund on the first day of the fund’s financial year;
(b)	the number of persons who began contributing to the fund during the fund’s financial year;
(c)	the numbers of service funeral benefits provided during the fund’s financial year:

(e)	the number of persons who ceased contributing to the fund during the fund’s financial year otherwise than by reason of the provision of a funeral benefit;
(f)	the number of persons who were contributing to the fund on the last day of the fund’s financial year.

(a)	a person ceases to be a contributor to a funeral contributions fund; and
(b)	an amount equal to the paid-up value of the person’s contributions is paid towards the cost of a funeral service for that person,

(a)	the funeral services to which that section applies are those specified in the Table to this clause; and
(b)	the particulars prescribed in relation to any such service are those specified in that Table in relation to that service.

Provision of vehicles .............	The classes of vehicles The number of vehicles in each class
Conveyance of persons and the	The maximum distance over which conveyance
remains of the deceased .....	will be provided

Disposal of the remains of the	Whether disposal is to be by way of burial or
deceased ...........................	cremation
Provision of memorial or urn.	The design and material of the memorial or urn
Accounts and register

(a)	must keep a register of investments in or to the effect of the approved form; and
(b)	within 7 days after purchasing or realising an investment, or receiving interest on it, must enter details of that transaction in the register.

(a)	to audit the records which the fund is required to keep under any law, including the accounts of the fund; and
(b)	to furnish it with a report of that audit within 3 months after the last day of the fund's financial year.

(a)	if (otherwise than as auditor) the person is an officer or employee of the fund; or
(b)	if the person is a partner, employer or employee of a person who is (otherwise than as an auditor) an officer or employee of the fund.

(a)	whether the auditor has obtained all the information and explanations which, to the best of his or her knowledge and belief, were necessary for the purposes of the audit;
(b)	whether the financial statements on which the auditor based the report are in agreement with the fund’s books of account and returns;
(c)	whether, in his or her opinion, proper books of account have been kept by the fund;
(d)	whether, in his or her opinion and to the best of his or her information and according to the explanations given to him or her, the accounts give the information required by or under the Act in the manner so required and disclose a true and fair view of the state of the trust accounts as at the end of the fund’s financial year;
(e)	whether, in his or her opinion, the records which the fund is required to keep by or under the Act have been properly kept;
(f)	whether the requirements of the law relating to the administration
of trust funds, including the requirements of the Act and this Regulation, have been observed.

(a)	to be given access at all times to the books, accounts, vouchers, securities and documents of the fund; and
(b)	to be given by the fund such information and explanations as the auditor thinks necessary for the performance of the duties of the auditor.

(a)	the number of pre-arranged contracts in respect of which the fund held money or other valuable consideration, as at the first day of that year;
(b)	the number of pre-arranged contracts in respect of which the fund commenced holding money or other valuable consideration during that year;
(c)	the numbers of pre-arranged contracts in respect of which the fund ceased holding money or other valuable consideration during that year, separately specified according to whether it ceased to hold that money or consideration pursuant to section 47 of the Act or pursuant to section 48 of the Act;
(d)	the number of pre-arranged contracts that were cancelled pursuant to section 49 of the Act during that year (being contracts in respect of which the fund was holding money or other valuable consideration when they were cancelled);
(e)	the number of pre-arranged contracts in respect of which the fund held money or other valuable consideration, as at the last day of that year.

(a)	such particulars as may be so specified with respect to existing or former pre-arranged contracts;
(b)	such particulars as may be so specified with respect to payments by the fund of amounts held in trust by it;
(c)	such further particulars with respect to the fund, or to any of its officers or agents or to its affairs, as may be so specified.

(a)	must make available for inspection by the person any return lodged with the Registrar under clause 21; and
(b)	must provide the person with a copy of any such return, or of such part of the return as the person specifies, certified under the Registrar’s hand and seal to be a true copy.

For registering a funeral contribution fund .............................	$300.00
For registering a pre-arranged funeral fund ............................	$300.00
For approving an alteration of or addition to the rules of a funeral

For confirming a scheme of transfer or amalgamation of the contributory funeral benefit business of a funeral contribution fund...............................................................................	$40.00
For confirming a scheme of transfer of trust funds under

(a)	a “worst case” projection based on the assumption that a conservative expansion in the company’s funeral contribution business (that is. the minimum expansion necessary to ensure the viability of the company) occurs during each of the years to which the projection relates; and
(b)	a “best case’’ projection based on the assumption that a reasonably rapid expansion in the company’s funeral contribution business occurs during each of the years to which the projection relates.

(a)	must contain details of the basis of the projection (including the assumptions used as a basis for determining the rate of expansion in the company’s funeral contribution business); and
(b)	must contain summaries of statistics for family cover and single cover funeral contribution business; and
(c)	must separately specify the gross contributions for family cover and single cover funeral contribution business payable in each of the years of the company’s projected operations; and
(d)	must contain a projected revenue account for each of the years of the company’s projected operations; and
(e)	must contain a projected balance sheet as at the end of each of the years of the company’s projected operations; and
(f)	must contain a projected valuation balance sheet as at the end of each of the years of the company’s projected operations.

(a)	if a valuation has previously been made for the purposes of an investigation under section 28 (1) of the Act—on the date of the previous valuation; or
(b)	if no such valuation has previously been made, but a like valuation has been made—on the date of the like valuation; or
(c)	if no such valuation has previously been made and a like valuation has not been made—on the date on which the company to which the valuation relates began carrying on contributory funeral benefit business;

(a)	whether the principles were determined by the memorandum of association of the fund or by its articles of association or by its other rules, or. if not, how the principles were determined;
(b)	the method by which the values of actuarial liabilities have been arrived at and how the ages at entry and contribution terms have been treated for the purposes of the valuation;
(c)	the methods by which the valuation ages and the future contribution terms have been treated for the purposes of the valuation;
(d)	if a proposed benefit is a funeral service, the future changes in the amount of the benefit which have been allowed for in the valuation;
(e)	if a proposed benefit is expressed as a cash amount, the rate and type of future bonus (if any) on the bonus that has been allowed for in the valuation, where, by the method of valuation, definite provision is made for future bonuses;
(f)	if the rules of the fund provide for increases on contributions—details of the future increases in contributions for which credit has been taken in the valuation;

(k)	the method of allowing for present and possible future liabilities in respect of persons whose contributions have lapsed if those persons are not included in the valuation;
(l)	if the rules of the fund provide for the waiver of a contributor’s contributions during his or her disability or unemployment or during some other specified contingency—the method of allowing for liabilities in respect of present and possible future waivers of contributions;
(m)	whether, under the valuation method adopted, any contributorship would be treated as an asset, and what steps have been taken to eliminate any such asset from the valuation;
(n)	how the mortality experienced by the fund compares with the mortality assumed in the valuation.

(a)	the interest earned in that year is taken as the whole of the investment income credited to the fund during that year; and
(b)	the mean fund of that year is ascertained by adding half of the value of the fund as it stood at the beginning of that year to half of the value of the fund as it stood at the end of that year, and deducting from that sum half the interest earned in that year.

(a)	must be signed by the actuary who made the relevant investigation under section 28 (1) of the Act; and
(b)	must contain a statement, signed by the actuary, to the effect that the abstract is in accordance with the valuation report on which it purports to be based; and
(c)	if the actuary is a permanent officer of the fund concerned, must contain a statement, signed by the actuary, to the effect that the actuary is satisfied that the data on which the valuation is based is accurate; or

(c)	the documents to accompany an application for approval of an alteration or addition to the rules of a funeral contribution fund (clause 6);
(d)	limitations on certain management expenses of a funeral contribution fund (clause 7);

(f)	particulars to appear in the register kept by a funeral contributions fund (clause 9);
(g)	the contents of the abstract of an actuary’s report on a funeral contributions fund (clause 10);
(h)	the documents to accompany an application for registration as trustees of a pre-arranged funeral fund (clause 11);

(j)	the manner in which the funds of a pre-arranged funeral fund may be invested (clause 13);
(k)	the maximum commission chargeable by a pre-arranged funeral fund (clause 14);

(o)	the qualifications to be held by the auditor of a pre-arranged funeral fund (clause 18);
(p)	the form and content of an auditor’s report on a pre-arranged funeral fund (clause 19);
(q)	the access to financial records that is required to be given by a pre-arranged funeral fund to an auditor (clause 20);