Life Insurance (prudential standard) determination No. 2 of 2011 - Prudential Standard LPS 700 - Friendly Society Benefit Funds
Termination of approved benefit fundsTermination of approved benefit funds
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Termination of approved benefit funds
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Under section 53 of the Act, a friendly society may apply to APRA to terminate an approved benefit fund of the friendly society. An application for a termination under section 53 of the Act may only be made in accordance with this Prudential Standard.
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An application for the termination of an approved benefit fund must:
(a) be made using “Form 6” in this Prudential Standard; and
(b) except in so far as APRA otherwise determines in writing, be accompanied by the documents mentioned in “Schedule 1 to Form 6” in this Prudential Standard; and
(c) be lodged with APRA at least 90 days, or such other period as APRA determines in writing, before the proposed date the termination is expected to take effect.
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The applicant must, on request by APRA and within the time specified, produce to APRA a report by an independent actuary (being an actuary, other than the appointed actuary, who is approved by APRA in writing to perform duties as required by APRA and paid for by the friendly society for the purposes of this Prudential Standard) including statements on the same matters as those required of the appointed actuary.
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Subject to this Prudential Standard, APRA may approve an application under paragraph 73 by a friendly society for a termination of any of its approved benefit funds.
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Before APRA can approve an application by a friendly society under paragraph 73, the friendly society must obtain consent for the termination, 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 the approved benefit fund that is proposed to be terminated; 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 termination under paragraph 77, 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 6, 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 77.
- If a proposed termination is approved to in accordance with paragraph 76, the friendly society must:
(a) cease to accept new members and any contributions from existing members in respect of the approved benefit fund; and