Life Insurance (prudential standard) determination No. 2 of 2014 - Prudential Standard LPS 320 - Actuarial and Related Matters
Special purpose reviewSpecial purpose review
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Special purpose review
- When requested to do so in writing by APRA, a life company must arrange for its Appointed Actuary to:
(a) undertake a special purpose review of matters set out in writing by APRA relating to the life company’s operations, risk management or financial affairs; and
(b) prepare a report in respect of that review.
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A special purpose review may be conducted by an actuary other than the actuary appointed under paragraph 7 but only where this is agreed to by APRA and the actuary satisfies the criteria set out in paragraph 8.
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The review must be completed in accordance with any relevant professional standards and guidance notes (as appropriate to the nature of the special purpose review), to the extent that they are not inconsistent with the requirements of this Prudential Standard. Where APRA considers, having regard to the nature of the life company’s operations and the purpose of the special purpose review, that the review should not be completed in accordance with those professional standards and guidance notes, APRA may advise the life company in writing that an alternative standard must be used (which is not inconsistent with the requirements of this Prudential Standard and the Act).
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The cost of a special purpose review will be borne by the life company.
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The actuary must submit the final report to APRA and the life company simultaneously within three months of the review being commissioned, or such other period as APRA agrees.