Life Insurance (prudential standard) determination No. 1 of 2011 - Prudential Standard LPS 600 - Statutory Funds
Transfer of assetsTransfer of assets
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Transfer of assets
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A life company shall transfer assets from a transferring fund to a receiving fund as soon as practicable after the transfer of liabilities from the transferring fund to the receiving fund.
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Assets that are transferred from a transferring fund to a receiving fund shall be treated as assets of a receiving fund on and from the date the restructure has effect.
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The nature and value of assets to be transferred from a transferring fund to a receiving fund is to be determined by the appointed actuary using a method that:
(a) places a value on the liabilities that is consistent with the value being adopted for the assets; and
(b) considers the nature and value of the assets in aggregate and also in respect of each particular class of assets; and
(c) in view of the nature of the liabilities to be transferred to a receiving fund and those to remain in a transferring fund, has the objectives of:
(i) facilitating the proper operation of the transferring fund and the receiving fund; and
(ii) protecting the interests of the owners of the policies referable to the transferring fund and the receiving fund; and
(d) is consistent with the method that was described in the appointed actuary’s report that:
(i) was lodged with APRA in relation to the application in accordance with Schedule 1 of Form 1; and
(ii) was approved by APRA as part of its approval under paragraph 7.