Life Insurance (prudential standard) determination No. 2 of 2011 - Prudential Standard LPS 700 - Friendly Society Benefit Funds
Adequate adoptionAdequate adoption
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Adequate adoption
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In respect of the benefit fund rule approvals and benefit fund rule amendments dealt with in this Prudential Standard, a friendly society must comply with the adequate adoption requirements under section 16B(2) of the Act and in doing so must give effect to the requirements set out in paragraphs 33 and 34.
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For the purpose of section 16B(2) of the Act, a friendly society adopting new benefit fund rules, or adopting amendments to existing approved benefit fund rules, may only do so by:
(a) a special resolution of the members of the friendly society (or a class of members as determined by APRA) in accordance with section 9 of the Corporations Act 2001; or
(b) subject to paragraph 34, a resolution of the friendly society’s board of directors.
- In respect of a benefit fund rule amendment, a friendly society may make a resolution under paragraph 33(b) if it provides reasons why adoption in this manner is appropriate and APRA is satisfied that:
(a) the amendment is authorised or required by the Act or any other law; or
(b) the amendment will not prejudice the rights of members who have an interest in the benefit fund; or
(c) there is a patent error in the approved benefit fund rules, and the amendment is to correct that error; or
(d) the amendment is in relation to a restructure or termination of an approved benefit fund or funds under section 52 and 53 of the Act, made in accordance with the requirements of this Prudential Standard.