30Outline of requirements regarding statutory funds

30 Outline of requirements regarding statutory funds

The principal requirements of this Part in relation to statutory funds may be summarised as follows: (a) all amounts received by a life company in respect of the business of a fund must be credited to the fund; (b) all assets and investments related to the business of a fund must be included in the fund; (c) all liabilities (including policy liabilities) of the company arising out of the conduct of the business of a fund must be treated as liabilities of the fund; (d) the assets of a fund are only available for expenditure related to the conduct of the business of the fund; (e) statutory funds may not be restructured or terminated without the approval of APRA; (f) profits and losses of a statutory fund may only be dealt with in accordance with Divisions 5 and 6 (the object of those Divisions being to ensure that such profits and losses are dealt with in a manner that protects the interests of policy owners and is consistent with prudent management of the fund).