16L

16L Approval of benefit fund rules

(1) A body that is registered as a company under the Corporations Law of a State or an internal Territory may apply in writing to APRA for approval of benefit fund rules for a benefit fund operated or to be operated by the company.

Note 1: The application may also include an application for approval of consequential amendments of the company’s constitution (see section 16U).

Note 2: Rules of a jointly regulated friendly society relating to its health insurance business are not covered by this Subdivision.

(2) The application must be accompanied by a copy of the benefit fund rules and must comply with any applicable requirements in Prudential Rules. (3) APRA must, in writing, approve the benefit fund rules if:

(a) application has been made for approval of the rules in accordance with subsection (2); and

(b) APRA is satisfied that:

(i) the carrying on of the activities to which the rules relate constitutes the carrying on of life insurance business; and

(ii) the rules are consistent with this Act; and

(c) APRA is satisfied that the rules have been adequately adopted.

APRA must give the company written notice of its decision whether to approve the rules. (4) The company is guilty of an offence if:

(a) APRA has approved the benefit fund rules; and

(b) Prudential Rules require the company to notify some or all of its members of the rules; and

(c) the company does not notify those members of the rules in accordance with that requirement.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.