Division When termination has effect - Life Insurance (prudential standard) determination No. 12 of 2010 - Prudential Standard LPS 700 Friendly Society Benefit Funds - When termination has effect | Zoe
Life Insurance (prudential standard) determination No. 12 of 2010 - Prudential Standard LPS 700 Friendly Society Benefit Funds
When termination has effectWhen termination has effect
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Turn the raw legal text into a practical explanation grounded in Life Insurance (prudential standard) determination No. 12 of 2010 - Prudential Standard LPS 700 Friendly Society Benefit Funds.
A termination of an approved benefit fund of a friendly society has effect from when amendments to the approved benefit fund rules to give effect to the termination come into force under section 16T of the Act.
Forms for use in relation to friendly society matters dealt with in this Prudential Standard.
Form 1: Approval of friendly society benefit fund rules
Name and Australian business number of friendly society
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Name of proposed benefit fund
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The items outlined below must be attached to this form:
(a) Particulars of projections of life insurance business to which the fund relates for:
i) whichever is the greater of the following periods:
the period of the financing arrangements for that business; or
10 years; or
ii) the period approved, in writing, by APRA; and
(b) Particulars of the proposed financing arrangements for the writing of new life insurance business to which the fund relates.
(c) A report by the appointed actuary on the establishment of the benefit fund and the proposed benefit fund rules, in accordance with paragraph 17 of Prudential Standard LPS 320 Actuarial and Related Matters.
Contact person
Please provide the contact details for the person to whom enquiries relating to this application should be directed.
Name
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Position title
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Phone
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Email address
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Address for correspondence
Please provide the address to which correspondence relating to this application should be mailed.
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Certification
By signing this form the signatory certifies that:
(a) the procedural requirements for the passing of the resolution in accordance with this Prudential Standard were met. Please attach a copy of the resolution.
(b) the proposed benefit fund rules comply with the requirements of this Prudential Standard. Please attach a copy of the proposed new benefit fund rule for approval.
Signature
This form must be signed by either:
(a) the principal executive officer of the friendly society; or
(b) an officer of the friendly society who has been authorised for that purpose by the principal executive officer, if the principal executive officer has notified APRA in writing of the authorisation.
Name Position title
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Signature Date
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Please send completed form and accompanying documents to your responsible supervisor.
Form 2: Approval of amendment of approved benefit fund rules
Name and Australian business number of friendly society
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Name of the approved benefit fund for which the approved benefit fund rules are proposed to be amended
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Is actuarial advice in accordance Prudential Standard LPS 320 Actuarial and Related Matters required?
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If yes, a copy of the actuary’s advice must be attached to this form.
Contact person
Please provide the contact details for the person to whom enquiries relating to this application should be directed.
Name
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Position title
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Phone
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Email address
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Address for correspondence
Please provide the address to which correspondence relating to this application should be mailed.
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Certification
By signing this form the signatory certifies that:
(a) the procedural requirements for the passing of the resolution in accordance with this Prudential Standard were met. Please attach a copy of the resolution.
(b) the approved benefit fund rules, as proposed to be amended comply with the requirements of this Prudential Standard. A copy of the proposed benefit fund rule amendments must be attached including a copy of the existing rules “marked up” to show the proposed changes.
Signatures
This form must be signed by:
(a) the principal executive officer of the friendly society; or
(b) an officer of the friendly society who has been authorised for that purpose by the principal executive officer, if the principal executive officer has notified APRA in writing of the authorisation.
Name Position title
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Signature Date
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Please send completed form and accompanying documents to your responsible supervisor.
Form 3: Approval of consequential amendments of company’s constitution on initiative of a friendly society
Name and Australian business number of friendly society
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Reason/s for the consequential amendments to the constitution
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Attach extra pages if insufficient space
This application must be accompanied by one of the following; please indicate as applicable:
Image unavailable in extracted text An application (Form 1) for approval of benefit fund rules under section 16L(2) of the Life Insurance Act 1995 (the Act); or
Image unavailable in extracted text An application (Form 2) for approval of amendment of approved benefit fund rules under section 16Q(2) of the Act.
Contact person
Please provide the contact details for the person to whom enquiries relating to this application should be directed.
Name
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Position title
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Phone
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Email address
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Address for correspondence
Please provide the address to which correspondence relating to this application should be mailed.
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Signatures
This form must be signed by:
(a) the principal executive officer of the friendly society; or
(b) an officer of the friendly society who has been authorised for that purpose by the principal executive officer, if the principal executive officer has notified APRA in writing of the authorisation.
Name Position title
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Signature Date
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Please send completed form and accompanying documents to your responsible supervisor.
Form 4: Approval of consequential amendments of a company’s constitution as required by APRA
Name and Australian business number of friendly society
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Contact person
Please provide the contact details for the person to whom enquiries relating to this application should be directed.
Name
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Position title
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Phone
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Email address
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Address for correspondence
Please provide the address to which correspondence relating to this application should be mailed.
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Certification
By signing this form, the signatory certifies that the proposed consequential amendments rectify the deficiency referred to in the APRA notice given under section 16V(2) of the Life Insurance Act 1995.
Signatures
This form must be signed by:
(a) the principal executive officer of the friendly society; or
(b) an officer of the friendly society who has been authorised for that purpose by the principal executive officer, if the principal executive officer has notified APRA in writing of the authorisation.
Name Position title
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Signature Date
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Please send completed form and accompanying documents to your responsible supervisor.
Form 5: Restructure of approved benefit funds
Name and Australian business number of friendly society
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Date from which the restructure is proposed to have effect
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Required documentation
By indicating “Yes” below, the signatory to this form confirms that the documents mentioned in Schedule 1 to this form have been attached.
Image unavailable in extracted textImage unavailable in extracted text Yes No
Contact person
Please provide the contact details for the person to whom enquiries relating to this application should be directed.
Name
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Position title
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Phone
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Email address
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Address for correspondence
Please provide the address to which correspondence relating to this application should be mailed.
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Signatures
This form must be signed by:
(a) the principal executive officer of the friendly society; or
(b) an officer of the friendly society who has been authorised for that purpose by the principal executive officer, if the principal executive officer has notified APRA in writing of the authorisation.
Name Position title
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Signature Date
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Please send completed form and accompanying documents to your responsible supervisor.
Schedule 1 to Form 5
Specified documents required to be lodged with Form 5
1. A statement of the nature of the proposed restructure and terms and conditions on which the restructure is to take place. The statement must, unless otherwise advised by APRA, include the following information:
(a) the name of each fund that is to be involved in the restructure, any proposed change in the name of any such fund and the proposed name of any new fund; and
(b) the date from which the restructure is proposed to have effect; and
(c) the reasons for the proposed restructure; and
(d) the effect of the proposed restructure on the interests of the members of each fund that is to be involved in the restructure; and
(e) the assets and undertakings of, and liabilities referable to, each transferring fund that will become assets and undertakings of and liabilities referable to a receiving fund, in accordance with the report of the appointed actuary given under item 3 of this schedule; and
(f) the category or categories of members of each transferring fund that, under the restructure, will become members of a receiving fund; and
(g) any interest that any officer of the society has in the proposed restructure; and
(h) any compensation or other consideration proposed to be paid, or any other incentive proposed to be given, to any officer or member of the society in relation to the proposed restructure; and
(i) if applicable, an estimate of the rate of any bonuses payable from each fund up to the date on which it is proposed that the restructure will take effect; and
(j) in the case of a transfer of part of a fund, details of any reserves that the society proposes to retain in the fund in accordance with the recommendations of the appointed actuary; and
(k) whether there has been any material change to the financial position of the fund since the date at which the profit and loss statements or balance sheets were prepared under item 2 of this schedule; and
(l) such other information as APRA requires.
2. Unless APRA determines in writing that they are not required, the most recent audited:
(a) profit and loss statement; and
(b) balance sheet
prepared in accordance with the relevant reporting standards applicable to friendly societies made by APRA under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 for each fund that is to be involved in the restructure, provided that they were prepared at a date no earlier than 6 months before the date of the application under paragraph 52 of this Prudential Standard.
3. A report by the appointed actuary on the proposed restructure, including:
(a) in relation to a restructure that does not consist of a transfer of all the assets and liabilities from a single transferring fund to a single receiving fund:
(i) a statement setting out the basis on which the nature and value of the assets to be transferred is to be determined; and
(ii) a statement as to whether the assets to be transferred are appropriate to the liabilities to be transferred; and
(b) a statement as to whether the restructure will result in unfairness to the owners of the policies referable to any of the funds involved in the restructure; and
(c) a statement as to whether, immediately after the restructure, a transferring fund and receiving fund will satisfy the solvency standard and capital adequacy standard applicable to it under the Act.
A copy of:
(a) any proposed new benefit fund rules; and
(b) any proposed amendments to approved benefit fund rules; and
(c) any proposed consequential amendments to the constitution of the friendly society in order to recognise the restructure.
5. A copy of the notice proposed to be issued by the friendly society to notify members of each fund involved in the restructure, as required by paragraph 67 of this Prudential Standard.
6. A certificate signed by the directors of the friendly society certifying that, having regard to all matters relevant to the proposed restructure, the directors consider that the restructure would be in the interests of the members of each fund that is to be involved in the restructure.
Form 6: Termination of approved benefit funds
Name and Australian business number of friendly society
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Name of the approved benefit fund that the friendly society proposes to terminate
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Date from which the approved benefit fund termination is proposed to take effect
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Required documentation
By indicating “Yes” below, the signatory to this form confirms that the documents mentioned in Schedule 1 to this form have been attached.
Image unavailable in extracted textImage unavailable in extracted text Yes No
Contact person
Please provide the contact details for the person to whom enquiries relating to this application should be directed.
Name
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Position title
Image unavailable in extracted text
Phone
Image unavailable in extracted text
Email address
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Address for correspondence
Please provide the address to which correspondence relating to this application should be mailed.
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Signatures
This form must be signed by:
(a) the principal executive officer of the friendly society; or
(b) an officer of the friendly society who has been authorised for that purpose by the principal executive officer, if the principal executive officer has notified APRA in writing of the authorisation.
Name Position title
Image unavailable in extracted textImage unavailable in extracted text
Signature Date
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Please send completed form and accompanying documents to your responsible supervisor.
Schedule 1 to Form 6
Specified documents required to be lodged with Form 6
A statement of the nature of the proposed termination and the terms and conditions on which the termination is to take place. Unless otherwise advised by APRA in writing, the statement must include the following information:
(a) the name of the approved benefit fund that is proposed to be terminated; and
(b) the date from which the termination is proposed to have effect; and
(c) the reasons for the proposed termination; and
(d) the manner in which the friendly society intends to distribute the assets of the approved benefit fund that is to be terminated; and
(e) the effect of the proposed termination on the interests of the members of the approved benefit fund; and
(f) any interest that any officer of the friendly society has in the proposed termination; and
(g) any compensation or other consideration proposed to be paid, or any other incentive proposed to be given, to any officer or member of the friendly society in relation to the proposed termination; and
(h) whether there has been any material change to the financial position of the approved benefit fund since the date at which the profit and loss statement or balance sheet were prepared under item 2 of this schedule; and
(i) such other information as APRA requires in writing.
Unless APRA determines in writing that they are not required, the most recent audited:
(a) profit and loss statement; and
(b) balance sheet
prepared in accordance with the relevant reporting standards applicable to friendly societies made by APRA under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 for each fund that is to be involved in the termination, provided that they were prepared at a date no earlier than 6 months before the date of the application under paragraph 73.
A certificate signed by the appointed actuary certifying that, having regard to all matters relevant to the proposed termination, the actuary considers that the termination would be in the interests of the members of the approved benefit fund.
A copy of:
(a) proposed amendments to the approved benefit fund rules; and
(b) any proposed consequential amendments to the constitution of the friendly society.
in order to recognise the termination of the approved benefit fund.
A copy of the notice proposed to be issued by the friendly society to notify members of the approved benefit fund of the proposed termination of the approved benefit fund, as required by paragraph 82.
A certificate signed by the directors certifying that, having regard to all matters relevant to the proposed termination, the directors consider that the termination would be in the interests of the members of the approved benefit fund.