Life insurance (prudential standards) determination No. 1 of 2004
References to accounting standards
Insurance Act 1973
I, John Francis Laker, Chair of APRA, under subsection 230A(5) of the Life Insurance Act 1995 (the “Act”), VARY the prudential standards referred to in the Schedule as provided for in the Schedule.
This variation comes into force on 1 January 2005.
Dated 15 December 2004
[signed]
……………………............
John Francis Laker
Chair
Note 1 The prudential standards referred to in the Schedule have effect, for the purposes of the Act, by application of regulation 33 of the Financial Sector Reform (Amendments and Transitional Provisions) Regulations 1999.
Note 2 A life company that does not comply with a standard may be issued with directions by APRA under section 230B of the Act. Non-compliance with a direction is an offence (see section 230F of the Act).
Interpretation
In this Notice
APRA means the Australian Prudential Regulation Authority.
life company has the meaning given in the Dictionary in the Act.
Schedule
[1] Prudential Standard (Friendly Societies) 6.4 (Part A, relating to subsidiaries), footnote 2
substitute
‘For the purposes of this Standard, ‘associate’ has the meaning in Accounting Standard AASB 1016 (as it applied in relation to reporting periods that began immediately before 1 January 2005).’
[2] Prudential Standard (Friendly Societies) 6.4C (relating to guarantees), paragraph 6.4.3.h
substitute
‘The provision of guarantees and indemnities may create contingent liabilities which are to be disclosed in the friendly society’s financial statements to APRA in accordance with the applicable Australia Accounting Standards (as those standards applied in relation to reporting periods that began immediately before 1 January 2005).’