Life Insurance (prudential standard) determination No. 2 of 2011 - Prudential Standard LPS 700 - Friendly Society Benefit Funds
Approval of application for restructure Approval of application for restructure of statutory funds
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Approval of application for restructure of statutory funds
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Subject to this Prudential Standard, APRA may approve an application by a friendly society for a restructure of its benefit funds.
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APRA may refuse to approve an application by a friendly society for a restructure of its benefit fund or benefit funds if it considers that immediately after the restructure:
(a) a transferring fund; or
(b) a receiving fund;
will not satisfy the capital adequacy standard applicable to it under the Act.
- In order for APRA to approve an application by a friendly society under paragraph 55, the friendly society must obtain consent for the restructure, in relation to each approved benefit fund that is involved in the restructure, by either:
(a) a special resolution, in accordance with section 9 of the Corporations Act 2001, by the members (or a class of members as determined by APRA) of each approved benefit fund that is involved in the restructure; or
(b) if APRA so determines, a resolution of the board of directors of the friendly society.
- A friendly society must, at least 21 days before a meeting of members to provide consent to a restructure under paragraph 57(a), give personally or by post to each member of the approved benefit fund:
(a) a copy of the documents mentioned in items 1, 2 and 6 of Schedule 1 to Form 5, or a summary of those documents, that has been approved by APRA in writing; and
(b) a notice of the meeting and the proposed special resolution in accordance with paragraph 57(a).
- If a proposed restructure is approved to in accordance with paragraph 55, the friendly society must within 30 days of that consent:
(a) provide APRA with a copy of the resolutions made under paragraph 57; and
(b) apply to APRA for approval of, whichever of the following is applicable:
(i) benefit fund rules in accordance with section 16L of the Act; and
(ii) a proposed amendment of its approved benefit fund rules in accordance with section 16Q of the Act; and
(iii) a proposed amendment of its constitution in accordance with section 16U of the Act.