Transfer of assetsTransfer of assets

Transfer of assets

60. Paragraphs 61 to 63:

(a) apply to all friendly societies other than those specified in paragraph 60(b); and

(b) do not apply to a friendly society where the restructure consists only of a transfer of all assets and liabilities from a single transferring benefit fund to a single receiving fund.

61. A friendly society 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.

62. 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.

63. 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 item 3 of Schedule 1 to Form 5; and

(ii) was approved by APRA as part of its approval under paragraph 56.