16RAmendment of approved benefit fund rules as required by APRA

16R Amendment of approved benefit fund rules as required by APRA

When this section applies (1) This section applies if APRA considers that approved benefit fund rules of a friendly society are deficient because they are inconsistent with this Act. APRA may give notice requiring amendment (2) APRA may, by written notice given to the friendly society, require the friendly society:

(a) to propose an amendment of the approved benefit fund rules, to rectify the deficiency, in accordance with requirements specified in, or determined in accordance with, the notice; and

(b) to submit the amendment for APRA’s approval.

The notice must specify a reasonable period for the submission of the amendment. Compliance with notice—submission of amendment for approval under section 16Q (3) To submit an amendment for APRA’s approval, the friendly society must apply in writing to APRA for approval of the amendment under section 16Q. Non‑compliance with notice—APRA’s power to determine amendment (4) If:

(a) the friendly society submits an amendment for APRA’s approval before the end of the period specified in the notice, but APRA refuses to approve the amendment under section 16Q; or

(b) the friendly society fails to submit an amendment for APRA’s approval before the end of that period;

APRA may, in writing, determine an amendment of the rules to rectify the deficiency. Non‑compliance with notice—notifying friendly society of amendment determined (5) If APRA determines an amendment of the approved benefit fund rules under subsection (4), APRA must immediately give the friendly society written notice of the amendment. Non‑compliance with notice—notifying members of amendment (6) The friendly society is guilty of an offence if:

(a) APRA gives the friendly society notice of an amendment of the benefit fund rules that APRA has determined; and

(b) Prudential Rules require the friendly society to notify some or all of its members of the amendment; and

(c) the friendly society does not notify those members of the amendment 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.