Life Insurance (prudential standard) determination No. 2 of 2011 - Prudential Standard LPS 700 - Friendly Society Benefit Funds
Notification of interested personsNotification of interested persons
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Notification of interested persons
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A friendly society that restructures a benefit fund must, within 6 weeks of the restructure having effect, give written notice of the restructure of the fund to the owner of every policy referable to any of the funds involved in the restructure.
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A notice under paragraph 67 must set out the following matters:
(a) the name and identifying details of the funds involved in the restructure;
(b) the date of the restructure;
(c) a statement, in relation to each fund affected by the restructure, whether the restructure affects the whole or part of the fund;
(d) a summary of how the restructure affects the interests of policy owners of each fund; and
(e) details of:
(i) any proposed new benefit fund rules; and
(ii) any proposed amendments to approved benefit fund rules; and
(iii) any proposed consequential amendments to the constitution of the friendly society;
in order to recognise the restructure.
- A notice under paragraph 68 must be accompanied by a document:
(a) describing (in summary form) the reasons for the restructure; and
(b) containing relevant extracts from any report by the appointed actuary on the proposed restructure under item 3 of Schedule 1 to Form 5 which deals with implications for policy owners.
- APRA may grant an exemption, subject to any conditions it thinks fit, from any of the requirements of paragraphs 67 to 69, if it considers that notification in accordance with those paragraphs is not necessary.