Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 (44 of 1999)

Schedule 4 Amendment of the Life Insurance Act 1995

11 After Part 2

Insert:

Part 2A - Special provisions relating to life companies that are friendly societies

Division 1 - Preliminary

16A Overview

(1) The concept of a friendly society is defined for the purposes of this Act in section 16C.

(2) A friendly society will be a life company if it carries on life insurance business in Australia.

(3) In working out whether a friendly society does carry on life insurance business (within the meaning of section 11), the effect of Division 3 must be taken into account. The effect of any relevant declarations under section 12A or 12B must also be taken into account.

(4) This Act applies to life companies that are friendly societies subject to:

(a) the modified operation of key concepts set out in Division 3; and

(b) the modifications relating to statutory funds set out in Division 4; and

(5) In addition to the modifications set out in this Part and in regulations for the purposes of section 16ZC, this Act includes some other special provisions in relation to friendly societies. See in particular:

(a) various provisions in Division 2 of Part 6 about auditors of friendly societies; and

(b) various provisions in Division 2 of Part 8 about winding up of friendly societies.

(6) Unless a contrary intention appears, a reference in this Act to a particular provision of this Act also includes, if that provision has been modified as mentioned in subsection (4), a reference to that provision as so modified.

Note: So, for example, if a provision to which section 125A or 125B applies has been modified, an exemption order under that section may be made in relation to the provision as so modified.

16B Definitions

(1) For the purposes of this Act:

adequately adopted , in relation to benefit fund rules or an amendment of benefit fund rules, has the meaning given by subsection (2).

approved benefit fund means a benefit fund for which there are approved benefit fund rules.

approved benefit fund rules means rules (as amended from time to time by amendments in force under section 16T) in relation to which the following conditions are satisfied:

(a) an approval under section 16L is in force in relation to the rules; and

(b) the rules are in force under section 16N.

benefit fund means a fund:

(a) that is established to provide benefits in accordance with rules of a friendly society; and

(b) that is established in the records of the friendly society.

benefit fund rules , in relation to a benefit fund, means the rules referred to in paragraph (a) of the definition of benefit fund .

friendly society has the meaning given by section 16C.

jointly regulated friendly society has the meaning given by subsection 16ZB(2).

(2) For the purposes of this Act, benefit fund rules of a company have, or an amendment of benefit fund rules of a company has, been adequately adopted if:

(a) the rules have, or the amendment has, been adopted by or on behalf of the company, or by or on behalf of the members or a class of the members of the company, in a way set out in Prudential Rules for the purposes of this subsection; and

(b) APRA considers that adoption of the rules or the amendment in that way adequately takes into account the interests of members of the company.

APRA may consult ASIC in considering the matters referred to in paragraph (b).

Division 2 - Friendly societies and how this Act applies to them

16C What is a friendly society?

(1) For the purposes of this Act, a friendly society is a body:

(a) that is registered as a company under the Corporations Law of a State or an internal Territory; and

(b) that is either:

(i) taken to be registered under this Act because of item 11 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999; or

(ii) covered by a determination under subsection (2).

(2) APRA may, in writing, determine that a specified body that is registered as a company under the Corporations Law of a State or an internal Territory is a friendly society for the purposes of this Act.

Note: A company may be specified by name, by inclusion in a specified class or in some other way.

(3) APRA may, in writing, vary or revoke a determination made under subsection (2).

(4) APRA must comply with any applicable requirements in Prudential Rules relating to the circumstances in which the powers under subsections (2) and (3) may be exercised.

(5) If APRA:

(a) makes a determination under subsection (2); or

(b) varies or revokes a determination under subsection (3);

APRA must cause notice of that action to be published in the Gazette. If the action relates to a particular company, otherwise than because the company is included in a specified class of companies, APRA must also give the company written notice of the action.

(6) If APRA:

(a) makes a determination under subsection (2); or

(b) varies or revokes a determination under subsection (3);

APRA must also give notice of that action to ASIC.

16D Act applies to friendly societies in accordance with this Part

This Act applies to a friendly society subject to the provisions of this Part.

Note: As noted in subsection 16A(5), this Act also contains some other special provisions in relation to friendly societies.

16E Restriction on use of expression friendly society

(1) A body corporate is guilty of an offence if:

(a) it assumes or uses, in Australia, the expression friendly society in relation to a financial business carried on by the body corporate (whether or not in Australia); and

(b) it is not a friendly society; and

Maximum penalty: 50 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

(2) If a body corporate assumes or uses the expression friendly society in circumstances that give rise to the body corporate committing an offence against subsection (1), the body corporate is guilty of an offence against that subsection in respect of:

(a) the first day on which the offence is committed; and

(b) each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day).

Note: This subsection is not intended to imply that section 4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

(3) A consent may be expressed to apply to a particular body corporate or to bodies corporate included in a class of bodies corporate.

(4) APRA may, at any time:

(a) impose conditions, or additional conditions, on a consent; or

(b) vary or revoke conditions imposed on a consent; or

(5) The form of the granting of a consent, or the taking of action under subsection (4) in relation to a consent, is to be as follows:

(a) if the consent applies to a particular body corporate - notice in writing served on the body corporate;

(b) if the consent applies to a class of bodies corporate - notice in writing published in the Gazette.

(6) If APRA:

(a) grants a consent; or

(b) takes action under subsection (4) in relation to a consent;

APRA must also give ASIC notice of the granting of the consent or the taking of that action.

(7) A body corporate is guilty of an offence if:

(a) it has been given a consent under this section; and

(b) it contravenes a condition to which the consent is subject.

Maximum penalty: 50 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

(8) If a body corporate does or fails to do an act in circumstances that give rise to the body corporate committing an offence against subsection (7), the body corporate is guilty of an offence against that subsection in respect of:

(a) the first day on which the offence is committed; and

Note: This subsection is not intended to imply that section 4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

(9) In this section:

financial business means a business that:

(a) consists of, or includes, the provision of financial services; or

(b) relates, in whole or in part, to the provision of financial services.

Division 3 - Modified operation of key concepts

16F Issue, ownership etc. of policies

New interests in benefit funds

(1) A friendly society is taken to issue a policy to a person when it accepts an application by the person for an interest in a benefit fund of the friendly society in accordance with the benefit fund rules. However, acceptance of an application for an increase to, or a continuation of, an existing interest in a benefit fund does not constitute the issue of a policy.

Interests in benefit funds existing as at the transfer date

(2) An interest that a person holds in a benefit fund of a friendly society on the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999 is taken to be a policy issued to the person by the friendly society.

Terms etc. of the policy

(3) If subsection (1) or (2) applies, then:

(a) the benefit fund rules are taken to be the terms of the policy referred to in that subsection; and

(b) the owner of the policy is taken to be:

(i) the person referred to in that subsection; or

(ii) if that person's rights to the interest in the benefit fund have been assigned under this Act or transferred by the operation of the benefit fund rules - the person who has those rights; and

(c) an amount that is required or permitted, by the benefit fund rules, to be paid in respect of those rights is taken to be a premium in respect of the policy; and

(d) the policy is taken to be referable to the benefit fund.

Note 1: Approved benefit fund rules have effect as a contract (see section 16Z).

Note 2: The policy that a friendly society is taken by subsection (1) or (2) to issue or to have issued will, depending on the terms of the benefit fund rules, be:

(a) a life policy (see section 9); or

(b) a sinking fund policy (see the definition in the Schedule); or

(d) some other kind of policy.

(4) Subsections (1), (2) and (3) have effect:

(a) for the purposes of this Act; and

(b) for the purposes of all other laws of the Commonwealth, subject to the expression of a contrary intention.

(5) In this section:

policy is not limited to a life policy, a sinking fund policy or a section 12A or 12B policy.

Division 4 - Modified operation of provisions relating to statutory funds

Subdivision 1 - Modifications

16G Act generally applies as if references to a statutory fund were references to an approved benefit fund

(1) Subject to subsection (2), this Act applies to a friendly society as if each reference to a statutory fund were instead a reference to an approved benefit fund.

Note: An approved benefit fund is a benefit fund for which there are approved benefit fund rules (see the definition in section 16B). Benefit fund rules are approved benefit fund rules if an approval under section 16L is in force in relation to the rules and the rules are in force under section 16N.

(2) Subsection (1) has effect subject to:

(a) the other provisions of this Subdivision; and

(b) the expression of a contrary intention in a particular provision; and

(3) Other laws of the Commonwealth have effect in relation to friendly societies as if any reference in such a law to a statutory fund of a life company also included a reference to an approved benefit fund of a friendly society, subject to the expression of a contrary intention.

16H Modification of section 34

Section 34 has effect in relation to a friendly society as if subsections (2), (3) and (4) were omitted and the following subsections were substituted:

(2) Assets or investments obtained by the application of assets (other than money) of an approved benefit fund are themselves assets of the fund. If an investment is a joint investment (see subsection (4A)), the asset is an asset of each of the contributing funds in proportion to their respective contributions.

(3) Subject to subsections (4) and (4A), a friendly society must keep assets of an approved benefit fund distinct and separate from assets of other approved benefit funds and from all other money, assets or investments of the friendly society.

(4) A friendly society may maintain a single bank account for money that constitutes assets of 2 or more approved benefit funds if the account is maintained in accordance with Prudential Rules.

(4A) A friendly society may invest assets of 2 or more approved benefit funds in a single investment if:

(a) the approved benefit fund rules of each of those funds provide for the assets of the fund to be invested together with the assets of the other fund or funds; and

(b) the investment complies with the applicable requirements (if any) in Prudential Rules relating to assets of one fund being invested together with assets of another fund or funds.

The investment is referred to as a joint investment , each of the funds is referred to as a contributing fund and the assets of a fund that are invested in the investment are referred to as the fund's contribution .

16I Modification of section 38

Section 38 has effect in relation to a friendly society as if the following subsection were added at the end of the section:

(8) Nothing in this section authorises a friendly society to apply assets of an approved benefit fund, or to mortgage or charge such assets, otherwise than as provided by the approved benefit fund rules.

16J Modification of section 43

Section 43 has effect in relation to a friendly society as if the following paragraph were inserted after paragraph (3)(b):

(ba) nothing in this Act authorises a friendly society to make an investment of assets of an approved benefit fund unless:

(i) the investment is of a kind provided for by the approved benefit fund rules; and

(ii) the investment complies with the requirements (if any) in Prudential Rules;

16K Modification of section 45

Section 45 has effect in relation to a friendly society as if the following subsection were added at the end of the section:

(5) In this section as it applies to a company that is a friendly society, a reference to an approved benefit fund includes a reference to the management fund of the society. The management fund of the society is the fund of the society that consists of the assets and liabilities of the society that do not form part of an approved benefit fund of the society.

Subdivision 2 - Approved benefit fund rules

16L Approval of benefit fund rules

(1) A body that is registered as a company under the Corporations Law of a State or an internal Territory may apply in writing to APRA for approval of benefit fund rules for a benefit fund operated or to be operated by the company.

Note 1: The application may also include an application for approval of consequential amendments of the company's constitution (see section 16U).

Note 2: Rules of a jointly regulated friendly society relating to its health insurance business are not covered by this Subdivision.

(2) The application must be accompanied by a copy of the benefit fund rules and must comply with any applicable requirements in Prudential Rules.

(3) APRA must, in writing, approve the benefit fund rules if:

(a) application has been made for approval of the rules in accordance with subsection (2); and

(b) APRA is satisfied that:

(i) the carrying on of the activities to which the rules relate constitutes the carrying on of life insurance business; and

(ii) the rules are consistent with this Act; and

APRA must give the company written notice of its decision whether to approve the rules.

(4) The company is guilty of an offence if:

(a) APRA has approved the benefit fund rules; and

(b) Prudential Rules require the company to notify some or all of its members of the rules; and

Maximum penalty for contravention of this subsection: 50 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16M Lodging of benefit fund rules with ASIC after approval by APRA

(1) This section applies if, under section 16L, APRA approves benefit fund rules pursuant to an application made by a company.

(2) The company must lodge a copy of the rules with ASIC in accordance with any requirements determined by ASIC.

(3) The company is guilty of an offence if it does not comply with subsection (2) within 14 days after the day on which APRA approved the rules.

Maximum penalty for contravention of this subsection: 5 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16N When benefit fund rules approved by APRA come into force

Benefit fund rules approved by APRA under section 16L come into force on the later of the following days:

(a) the day on which a copy of the rules is lodged with ASIC;

(b) the day (if any) specified in the rules as the day on which they are to come into force;

(c) if the company that applied for approval of the rules was not a friendly society on the day on which the application was made - the day on which the company becomes a friendly society.

16O Benefit fund rules approved by APRA and in force form part of company's constitution

Benefit fund rules that:

(a) have been approved by APRA under section 16L; and

(b) have come into force under section 16N;

are, by force of this section, part of the constitution of the company that applied for approval of the rules.

16P Amendment of approved benefit fund rules not effective unless approved by APRA

(1) An amendment of approved benefit fund rules of a friendly society is effective if, and only if:

(a) the amendment has been approved by APRA under subsection 16Q(3) and is in force under section 16T; or

(b) the amendment is determined by APRA under subsection 16R(4) and is in force under section 16T.

(2) Without limiting subsection (1), an amendment of approved benefit fund rules that is in force under section 16T takes effect, by force of this section, as an amendment of the constitution of the friendly society.

16Q Amendment of approved benefit fund rules on initiative of friendly society

(1) A friendly society may apply in writing for approval of a proposed amendment of approved benefit fund rules of the friendly society.

Note: The application may also include an application for approval of consequential amendments of the company's constitution (see section 16U).

(2) The application must be accompanied by a copy of the amendment and must comply with any applicable requirements in Prudential Rules.

(3) APRA must, in writing, approve the amendment if:

(a) application has been made for approval of the amendment in accordance with subsection (2); and

(b) APRA is satisfied that the rules, as proposed to be amended, will satisfy the requirements of paragraph 16L(3)(b); and

APRA must give the friendly society written notice of its decision whether to approve the amendment.

(4) The friendly society is guilty of an offence if:

(a) APRA has approved the amendment; and

(b) Prudential Rules require the friendly society to notify some or all of its members of the amendment; and

Maximum penalty for contravention of this subsection: 50 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16R Amendment of approved benefit fund rules as required by APRA

When this section applies

(1) This section applies if APRA considers that approved benefit fund rules of a friendly society are deficient because they are inconsistent with this Act.

APRA may give notice requiring amendment

(2) APRA may, by written notice given to the friendly society, require the friendly society:

(a) to propose an amendment of the approved benefit fund rules, to rectify the deficiency, in accordance with requirements specified in, or determined in accordance with, the notice; and

(b) to submit the amendment for APRA's approval.

The notice must specify a reasonable period for the submission of the amendment.

Compliance with notice - submission of amendment for approval under section 16Q

(3) To submit an amendment for APRA's approval, the friendly society must apply in writing to APRA for approval of the amendment under section 16Q.

Non-compliance with notice - APRA's power to determine amendment

(4) If:

(a) the friendly society submits an amendment for APRA's approval before the end of the period specified in the notice, but APRA refuses to approve the amendment under section 16Q; or

(b) the friendly society fails to submit an amendment for APRA's approval before the end of that period;

APRA may, in writing, determine an amendment of the rules to rectify the deficiency.

Non-compliance with notice - notifying friendly society of amendment determined

(5) If APRA determines an amendment of the approved benefit fund rules under subsection (4), APRA must immediately give the friendly society written notice of the amendment.

Non-compliance with notice - notifying members of amendment

(6) The friendly society is guilty of an offence if:

(a) APRA gives the friendly society notice of an amendment of the benefit fund rules that APRA has determined; and

(b) Prudential Rules require the friendly society to notify some or all of its members of the amendment; and

Maximum penalty for contravention of this subsection: 50 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16S Lodging of amendment of benefit fund rules with ASIC after approval by APRA

(1) This section applies if, under section 16Q, APRA approves an amendment of benefit fund rules lodged by a friendly society.

(2) The friendly society must lodge a copy of the amendment with ASIC in accordance with any requirements determined by ASIC.

(3) The friendly society is guilty of an offence if it does not comply with subsection (2) within 14 days after the day on which APRA approved the amendment.

Maximum penalty for contravention of this subsection: 5 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16T When amendment of benefit fund rules approved or determined by APRA come into force

An amendment of approved benefit fund rules:

(a) approved by APRA under section 16Q; or

(b) determined by APRA under section 16R;

comes into force on the later of the following days:

(d) the day (if any) specified in the amendment as the day on which it is to come into force.

16U Approval of consequential amendments of company's constitution

(1) An application:

(a) by a company under section 16L for approval of benefit fund rules; or

(b) by a company under section 16Q for approval of a proposed amendment of approved benefit fund rules;

may also include an application for approval of proposed amendments (the consequential amendments ) of the constitution of the company that are consequential on the proposed benefit fund rules or amendment of benefit fund rules.

Note: This covers applications by friendly societies, all of which are companies.

(2) The application for approval of the consequential amendments must be accompanied by a copy of the consequential amendments and must comply with any applicable requirements in Prudential Rules.

(3) APRA may approve the consequential amendments if APRA is satisfied that the changes proposed to be made by the consequential amendments:

(a) are consequential on the proposed benefit fund rules or amendment of benefit fund rules; and

(b) do not also deal with other matters.

APRA may consult ASIC in considering the matters referred to in paragraphs (a) and (b). APRA must give the company written notice of its decision whether to approve the consequential amendments.

(4) The company is guilty of an offence if:

(a) APRA has approved the consequential amendments; and

(b) Prudential Rules require the company to notify some or all of its members of the consequential amendments; and

Maximum penalty for contravention of this subsection: 50 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16V Consequential amendments of constitution as required by APRA

When this section applies

(1) This section applies if APRA considers that the constitution of a company is deficient because, as a result of the adoption or amendment of approved benefit fund rules of the company, the constitution is inconsistent with those rules.

APRA may give notice requiring amendments

(2) APRA may, by written notice given to the company, require the company:

(a) to propose consequential amendments to its constitution, to rectify the deficiency, in accordance with requirements specified in, or determined in accordance with, the notice; and

(b) to submit the amendments for APRA's approval.

The notice must specify a reasonable period for the submission of the amendments.

Compliance with notice - submission of amendments for approval

(3) To submit consequential amendments for APRA's approval, the company must apply in writing to APRA for approval of the amendments under this subsection. The application must be accompanied by a copy of the amendments and must comply with any applicable requirements in Prudential Rules.

Approval of submitted amendments

(4) APRA may approve the consequential amendments if APRA is satisfied that:

(a) an application has been made for approval of the amendments in accordance with subsection (3); and

(b) the amendments rectify the deficiency referred to in subsection (1).

APRA must give the company written notice of its decision whether to approve the consequential amendments.

Non-compliance with notice - APRA's power to determine amendments

(5) If:

(a) the company submits consequential amendments for APRA's approval before the end of the period specified in the notice, but APRA refuses to approve the amendments under subsection (4); or

(b) the company fails to submit consequential amendments for APRA's approval before the end of that period;

APRA may, in writing, determine consequential amendments of the constitution to rectify the deficiency.

Non-compliance with notice - notifying company of amendments determined

(6) If APRA determines consequential amendments of the constitution under subsection (5), APRA must immediately give the company written notice of the amendments.

Notifying members of amendments

(7) The company is guilty of an offence if:

(a) APRA has either:

(i) approved consequential amendments under subsection (4); or

(ii) given the company notice of consequential amendments that APRA has determined under subsection (5); and

(b) Prudential Rules require the company to notify some or all of its members of the consequential amendments; and

Maximum penalty for contravention of this subsection: 50 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16W Lodging of consequential amendments with ASIC after approval by APRA

(1) This section applies if, under subsection 16U(3) or subsection 16V(4), APRA approves consequential amendments of the constitution of a company pursuant to an application by the company.

(2) The company must lodge a copy of the consequential amendments with ASIC in accordance with any requirements determined by ASIC.

(3) The company is guilty of an offence if it does not comply with subsection (2) within 14 days after the day on which APRA approved the consequential amendments.

Maximum penalty for contravention of this subsection: 5 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

16X When consequential amendments approved or determined by APRA come into force

Consequential amendments:

(a) approved by APRA under subsection 16U(3) or subsection 16V(4); or

(b) determined by APRA under subsection 16V(5);

come into force on the later of the following days:

(d) the day (if any) specified in the amendments as the day on which they are to come into force.

16Y Consequential amendments approved by APRA and in force take effect as amendments of company's constitution

A consequential amendment of a company's constitution that is in force under section 16X takes effect, by force of this section, as an amendment of the constitution of the company.

16Z Contractual effect of approved benefit fund rules and policies

(1) Approved benefit fund rules of a friendly society have effect as a contract between the friendly society and each person who is, because of section 16F, taken to be the owner of a policy referable to the benefit fund.

(2) Without limiting the generality of subsection (1), a policy that is, because of section 16F, taken to be issued by a friendly society has effect, and may be enforced, as a contract between:

(a) the person who is, because of that section, taken to be the owner of the policy; and

(b) either:

(i) the friendly society that is taken to have issued the policy; or

(ii) if that friendly society's liabilities under the policy have been transferred or assigned to another company - that other company.

Division 5 - Other modifications

16ZA Assignment of an interest in a benefit fund that is, because of section 16F, taken to be a policy

An assignment of an interest in a benefit fund that is, because of section 16F, taken to be a policy is taken to satisfy the requirements of subsection 200(2) if:

(a) the relevant benefit fund rules set out the requirements for the assignment to take place; and

(b) the assignment is made in a way that meets those requirements.

16ZB Certain friendly societies may continue to carry on health insurance business - modified operation of this Act

(1) A friendly society:

(a) that is taken to be registered under this Act because of item 11 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999; and

(b) that was carrying on health insurance business immediately before being taken to be so registered;

may continue to carry on that health insurance business after being taken to be so registered.

(2) A reference in this Act to a jointly regulated friendly society is a reference to a friendly society that carries on life insurance business and that also carries on health insurance business in accordance with subsection (1).

Note: The society's life insurance business is regulated under this Act, while its health insurance business is regulated under the National Health Act 1953.

(3) Section 234 has effect subject to subsection (1) of this section.

(4) Without limiting the matters that may be dealt with in regulations under section 16ZC, regulations under that section may set out modifications of this Act as it applies in relation to jointly regulated friendly societies.

16ZC Other modifications

(1) The regulations may set out modifications of this Act that are to apply in relation to friendly societies (in addition to the modifications set out in the other provisions of this Part).

(2) Modifications set out in regulations for the purposes of subsection (1) cannot:

(a) modify a provision of this Act that creates an offence; or

(b) include new provisions that create offences.

(3) This Act applies to a friendly society subject to any modifications set out in regulations for the purposes of subsection (1).

(4) In this section:

modifications includes omissions, additions and substitutions.

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