Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 (44 of 1999)
Schedule 4 Amendment of the Life Insurance Act 1995
22 Division 3 of Part 4
Repeal the Division, substitute:
Division 3 - Restructure and termination of statutory funds
52 Restructure of statutory funds
(1) Prudential Rules may provide that:
(a) a life company may apply to APRA to restructure its statutory funds by making one or more policies that are referable to a statutory fund or funds of the company become referable to another statutory fund or funds of the company (whether existing or proposed); and
(b) if the application is approved, the restructure is to take place.
(2) The fund, or each fund, to which the policies are referable before the restructure is a transferring fund , and the fund, or each fund, to which the policies will become referable after the restructure is a receiving fund .
(3) Without limiting the generality of subsection (1), Prudential Rules may provide for the following:
(a) requirements for making the application;
(b) criteria for approving or refusing to approve the application;
(c) requirements to notify interested persons of the outcome of the application;
(d) matters connected with how the restructure takes place, including the following:
(i) policies becoming referable to a receiving fund or funds;
(ii) policy and other liabilities becoming referable to a receiving fund or funds;
(iii) assets of a transferring fund becoming assets of a receiving fund or funds;
(iv) the timing of the restructure;
(v) if a receiving fund is a proposed new statutory fund - the establishment of that fund;
(e) requirements for the company to give APRA information following the restructure.
(4) APRA cannot approve the application if it considers that:
(a) the restructure will result in unfairness to the owners of policies referable to a transferring fund or a receiving fund when those owners are viewed as a group; or
(b) immediately after the restructure:
(i) a transferring fund will not satisfy the solvency standard applicable to it; or
(ii) a receiving fund will not satisfy the solvency standard applicable to it; or
(c) the company is being wound up when the application is made.
53 Termination of statutory funds
(1) Prudential Rules may provide that:
(a) a life company may apply to APRA to terminate one or more of its statutory funds; and
(b) if the application is approved, the termination is to take place.
(2) Without limiting the generality of subsection (1), Prudential Rules may provide for the following:
(a) requirements for making the application;
(b) criteria for approving or refusing to approve the application;
(c) requirements to notify interested parties of the outcome of the application;
(d) matters connected with how the termination takes place, including the following:
(i) distribution or application of assets;
(ii) settling of liabilities;
(iii) the timing of the termination;
(e) requirements for the company to give APRA information following the termination.
(3) APRA cannot approve the application if it considers that:
(a) the termination will result in unfairness to the owners of policies referable to the fund or funds when those owners are viewed as a group; or
(b) the company is being wound up when the application is made.
54 Prudential Rules may deal with transitional matters
Prudential Rules may deal with matters of a transitional, saving or application nature relating to the transition:
(a) from Division 3 of Part 4 of this Act, as in force before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, to this Division; and
(b) from the Friendly Societies Codes (as defined in item 1 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999), as in force before the date that is the transfer date for the purposes of that Act, to this Division.