16ZA Assignment of an interest in a benefit fund that is, because of section 16F, taken to be a policy
An assignment of an interest in a benefit fund that is, because of section 16F, taken to be a policy is taken to satisfy the requirements of subsection 200(2) if:
(a) the relevant benefit fund rules set out the requirements for the assignment to take place; and
(b) the assignment is made in a way that meets those requirements.
16ZB Certain friendly societies may continue to carry on health insurance business—modified operation of this Act
(1) A friendly society:
(a) that is taken to be registered under this Act because of item 11 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999; and
(b) that was carrying on health insurance business immediately before being taken to be so registered;
may continue to carry on that health insurance business after being taken to be so registered.
(2) A reference in this Act to a jointly regulated friendly society is a reference to a friendly society that carries on life insurance business and that also carries on health insurance business in accordance with subsection (1).
Note: The society’s life insurance business is regulated under this Act, while its health insurance business is regulated under the National Health Act 1953.
(3) Section 234 has effect subject to subsection (1) of this section.
(4) Without limiting the matters that may be dealt with in regulations under section 16ZC, regulations under that section may set out modifications of this Act as it applies in relation to jointly regulated friendly societies.
16ZC Other modifications
(1) The regulations may set out modifications of this Act that are to apply in relation to friendly societies (in addition to the modifications set out in the other provisions of this Part).
(2) Modifications set out in regulations for the purposes of subsection (1) cannot:
(a) modify a provision of this Act that creates an offence; or
(b) include new provisions that create offences.
(3) This Act applies to a friendly society subject to any modifications set out in regulations for the purposes of subsection (1).
modifications includes omissions, additions and substitutions.
12 At the end of section 17
Add:
(4) If a declaration is in force under section 12A or 12B in relation to business carried on or proposed to be carried on by a company, the company must not intentionally carry on that business unless the company is registered under this Act.
Note: The heading to section 17 is replaced by the heading “When registration is required”.
13 Paragraphs 21(3)(a), (b), (c) and (ca)
Repeal the paragraphs.
14 Paragraph 21(3)(e)
(e) that the company is not able, or is unlikely to be able, to comply with the provisions of this Act;
15 Subsections 21(4) and (8)
16 Sections 23 and 24
Repeal the sections.
17 Paragraph 30(e)
Omit “divided or amalgamated”, substitute “restructured or terminated”.
18 At the end of subsection 35(4)
Add:
Note: If the fund or funds to which a policy is referable is changed in this way, section 55 must be complied with.
19 Paragraphs 46(a) and (b)
(a) change the statutory fund or funds to which a policy is referable; or
(b) terminate a statutory fund;
Note: The heading to section 46 is replaced by the heading “Restriction on restructure or termination of statutory funds”.
20 Section 46
Omit “except with the written approval of APRA under Division 3”, substitute:
except in accordance with:
(c) subsection 35(4) and section 55; or
(d) Division 3.
21 At the end of section 46
Add:
(2) Subsection (1) does not prevent a liquidator doing anything authorised or required by or under this Act or any other law of the Commonwealth or of a State or Territory.
22 Division 3 of Part 4
Repeal the Division, substitute:
Division 3—Restructure and termination of statutory funds
52 Restructure of statutory funds
(1) Prudential Rules may provide that:
(a) a life company may apply to APRA to restructure its statutory funds by making one or more policies that are referable to a statutory fund or funds of the company become referable to another statutory fund or funds of the company (whether existing or proposed); and
(b) if the application is approved, the restructure is to take place.
(2) The fund, or each fund, to which the policies are referable before the restructure is a transferring fund, and the fund, or each fund, to which the policies will become referable after the restructure is a receiving fund.
(3) Without limiting the generality of subsection (1), Prudential Rules may provide for the following:
(a) requirements for making the application;
(b) criteria for approving or refusing to approve the application;
(c) requirements to notify interested persons of the outcome of the application;
(d) matters connected with how the restructure takes place, including the following:
(i) policies becoming referable to a receiving fund or funds;
(ii) policy and other liabilities becoming referable to a receiving fund or funds;
(iii) assets of a transferring fund becoming assets of a receiving fund or funds;
(iv) the timing of the restructure;
(v) if a receiving fund is a proposed new statutory fund—the establishment of that fund;
(e) requirements for the company to give APRA information following the restructure.
(4) APRA cannot approve the application if it considers that:
(a) the restructure will result in unfairness to the owners of policies referable to a transferring fund or a receiving fund when those owners are viewed as a group; or
(b) immediately after the restructure:
(i) a transferring fund will not satisfy the solvency standard applicable to it; or
(ii) a receiving fund will not satisfy the solvency standard applicable to it; or
(c) the company is being wound up when the application is made.
53 Termination of statutory funds
(1) Prudential Rules may provide that:
(a) a life company may apply to APRA to terminate one or more of its statutory funds; and
(b) if the application is approved, the termination is to take place.
(2) Without limiting the generality of subsection (1), Prudential Rules may provide for the following:
(a) requirements for making the application;
(b) criteria for approving or refusing to approve the application;
(c) requirements to notify interested parties of the outcome of the application;
(d) matters connected with how the termination takes place, including the following:
(i) distribution or application of assets;
(ii) settling of liabilities;
(iii) the timing of the termination;
(e) requirements for the company to give APRA information following the termination.
(3) APRA cannot approve the application if it considers that:
(a) the termination will result in unfairness to the owners of policies referable to the fund or funds when those owners are viewed as a group; or
(b) the company is being wound up when the application is made.
54 Prudential Rules may deal with transitional matters
Prudential Rules may deal with matters of a transitional, saving or application nature relating to the transition:
(a) from Division 3 of Part 4 of this Act, as in force before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, to this Division; and
(b) from the Friendly Societies Codes (as defined in item 1 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999), as in force before the date that is the transfer date for the purposes of that Act, to this Division.
23 Division 4 of Part 4 (heading)
Division Div 5 - Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 - Other modifications | Zoe