Life Insurance Act 1995 Prudential Rules No. 38 Restructure and Termination of Statutory Funds (Cth)

Life Insurance Act 1995

PRUDENTIAL RULES No 38

RESTRUCTURE AND TERMINATION OF STATUTORY FUNDS -

TRANSITIONAL MATTERS (S 54)

I, Graeme John Thompson, a delegate of the Australian Prudential Regulation Authority (“APRA”), under subsection 252(1) of the Life Insurance Act 1995 MAKE the following Prudential Rules for the purposes of section 54 of the Act (as amended by item 22 of Schedule 4 to the FSR (A&TP) Act 1999):

Definitions

1.   In these Prudential Rules:

Act has the meaning given by item 78 of Schedule 4 to the FSR (A&TP) Act 1999;

APRA means the Australian Prudential Regulation Authority;

Friendly Societies Code has the meaning given by item 1 of Division 1 of Part 1 of Schedule 8 to the FSR (A&TP) Act 1999;

friendly society has the meaning given by item 1 of Division 1 of Part 1 of Schedule 8 to the FSR(A&TP) Act 1999;

FSR (A&TP) Act 1999 means the Financial Sector Reform (Amendments andTransitional Provisions) Act (No. 1) 1999;

SSA has the meaning given by item 1 of Division 1 of Part 1 of Schedule 8 to the FSR (A&TP) Act 1999; and

transfer date has the meaning given by section 2 of the FSR (A&TP) Act 1999.

Life companies other than friendly societies - things done under the Act before the transfer date

2.   Subject to rule 4, anything done before the transfer date in relation to Division 3 of Part 4 of the Act in relation to a life company other than a friendly society (for example, lodging an application under Prudential Rules) is to be treated on and after the transfer date as if it had been done in relation to sections 52 or 53 of the Act and any applicable Prudential Rules administered by APRA after the transfer date.

Friendly societies - things done under the Friendly Societies Code before the transfer date

3.   Subject to rule 4, anything done before the transfer date in relation to Divisions 3 and 4 of Part 4A of the Friendly Societies Code in relation to a friendly society, including:

(a)        the lodgement of a restructure or termination statement with an SSA;

(b)       an approval of a restructure or termination statement given by an SSA in relation to the restructure or termination of a benefit fund of a friendly society;

(c)       an approval by a special resolution of the relevant members of the friendly society or if the SSA so determines, by a resolution of the Board of a friendly society, in relation to the restructure or termination of a benefit fund of a friendly society; or

(d)       an application to register an amendment of the friendly society’s rules in relation to a restructure or termination;

is to be treated on and after the transfer date as if it had been done in relation to sections 52 or 53 of the Act and any applicable Prudential Rules administered by APRA after the transfer date.

4. For the purposes of section 54 of the Act, as amended by item 22 of Schedule 4 to the FSR (A&TP) Act 1999, APRA may, by written notice given to a life company, request the life company to provide further information, as set out in that notice, to ensure that things done under rules 2 and 3 comply more fully with the Act.

This instrument commences on the transfer date.

Dated 24 June 1999

[Signed]

G J Thompson

Chief Executive Officer

Australian Prudential Regulation Authority