52Restructure of statutory funds

52 Restructure of statutory funds

(1) The prudential standards 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), the prudential standards 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 prudential standards in relation to solvency; or (ii) a receiving fund will not satisfy the prudential standards in relation to solvency; or (c) the company is being wound up when the application is made.