Life Insurance Act 1995 Prudential Rules No. 40 Approval of Benefit Fund Rules (Cth)

Life Insurance (Prudential Rules)

Prudential Rules No 40 – Approval of Benefit Fund Rules

as amended

made under subsection 252(4) of the

Life Insurance Act 1995

This compilation was prepared on 30 June 2010
taking into account amendments up to Life Insurance (prudential rules) determination No. A1 of 2010

Prepared by Legal Group, APRA, Canberra

I, Graeme John Thompson, a delegate of the Australian Prudential Regulation Authority (“APRA”), under subsection 252(1) of the Life Insurance Act 1995 (the “Act”), MAKE the following Prudential Rules for the purposes of subsection 16L(2) and paragraph 16L(4)(b) of the Act:

Application for approval of benefit fund rules

1. An application under subsection 16L(2) of the Act must:

(a)       be in writing; and

(b)       state the name of the benefit fund; and

(c)       state that the procedural requirements for the passing of the resolution in accordance with Prudential Rules No 39 were met; and

(d)       be accompanied by a copy of the resolution made in accordance with Prudential Rules No 39; and

(e)       certify that the benefit fund rules accompanying the application comply with the requirements of Prudential Standard LPS 902 Approved Benefit Fund Requirements; and

(f)        contain particulars of the proposed financing arrangements for the writing of new life insurance business to which the fund relates; and

(g)       contain particulars of projections of life insurance business to which the fund relates for:

(i)         whichever is the greater of the following periods:

(A)       the period of the financing arrangements for that business; or

(B)       10 years; or

(ii)        the period approved, in writing, by APRA; and

(h)       be accompanied by a report by the appointed actuary on establishment of the benefit  fund and the proposed benefit fund rules, in accordance with paragraph 17 of the  Prudential Standard LPS 320 Actuarial and Related Matters; and

(i)        be signed by:

(i)         the principal executive officer of the company; or

(ii)        an officer of the company who has been authorised for that purpose by the principal executive officer, if the principal executive officer has notified APRA in writing of the authorisation.

Notification of the benefit fund rules to members

2.   Subject to rule 3, if:

(a) APRA approves the benefit fund rules under subsection 16L(3) of the Act; and

(b) the benefit fund rules approved by APRA have come into force under section 16N of the Act;

the friendly society must give a written notice to its members, no later than the day on which notice is given of the next general meeting of the friendly society:

(c)       stating the date on which the benefit fund rules came into force; and

(d)       giving a summary of the benefit fund rules.

3.   If APRA gives its prior approval, the notice under rule 2 may be given to members by an advertisement published in a newspaper circulating generally in the area of each State or Territory in which the friendly society operates.

This instrument commences on the transfer date (as defined in section 2 of the FinancialSector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999).

Notes to Life Insurance (Prudential Rules)

Prudential Rules No 40 – Approval of Benefit Fund Rules

Note 1

Life Insurance (Prudential Rules) – Prudential Rules No 40 – Approval of Benefit Fund Rules (in force under section 252(4) of the Life Insurance Act 1995) as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Year and Number	Date of Gazettal/FRLI registration	Date of commencement	Application, saving or transitional provisions
Prudential Rules No. 40 – Approval of Benefit Fund Rules (F2009B00142)	30 June 1999 (see Gazette 1999, No. GN26)	1 July 1999 (see Gazette 1999, No. S283)
Variation of Prudential Rules No. 40 – Approval of Benefit Fund Rules (F2009B00143)	1 Sept 1999 (see Gazette 1999, No. GN35)	1 Sept 1999	—
No. A1 of 2010	8 July 2010 (see F2010L01878)	8 July 2010	—

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted
Provision affected	How affected
Rule 1.(i).................................	rs. F2009B00143
Rule 1.(e)...............................	am. No. A1 of 2010
Rule 1.(h)...............................	am. No. A1 of 2010