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

Schedule 8   Transitional, saving and application provisions

Part 1   Transitional provisions relating to transfer from State and Territory regulatory regimes

Division 5   Transitional provisions relating to operation of the Life Insurance Act 1995

11   Companies taken to be registered etc.

(1) A company (within the meaning of the amended Act) in relation to which all the following conditions are satisfied is taken, on the transfer date, to have been granted registration under section 21 of the amended Act:

(a) immediately before the transfer date, the company was a friendly society;

(b) the company carried on business before the transfer date through one or more eligible benefit funds;

(c) the company was not in winding up immediately before the transfer date;

(d) the company is specified in regulations for the purposes of this item.

For the purposes of paragraph (c), a company was in winding up immediately before the transfer date if, at that time, an appointment of a liquidator of the company was in force in accordance with Part 9 of the Friendly Societies Code of a State or Territory.

Note 1: A company may be specified by name, by inclusion in a specified class or in some other way.

Note 2: If the company was in winding up immediately before the transfer date, the winding up will continue in accordance with Schedule 4 to the Corporations Law (see in particular clause 11 of that Schedule).

(2) APRA must, as soon as practicable after the transfer date, issue to the company a certificate under subsection 21(5) of the amended Act.

(3) The registration may be dealt with under the amended Act as if it had actually been granted under section 21 of that Act.

(4) The regulations may provide for the company to cease to be registered. Regulations for this purpose have effect in addition to the provisions in sections 26 and 27 of the amended Act about cancellation of a company's registration.

(5) If, immediately before the transfer date, the company carried on business:

(a) that was:

(i) insurance business, other than health insurance business or business relating to loss of, or damage to, property; or

(ii) annuity business; and

(b) that, apart from this item, would not be life insurance business (within the meaning of the amended Act);

APRA is taken, on the transfer date, to have made a declaration under section 12A of the amended Act that the business is to be treated as if it were life insurance business.

(6) If, immediately before the transfer date, the company carried on business:

(a) to which section 12B of the amended Act would have applied if it had been in force then; and

(b) that, apart from this item, would not be life insurance business (within the meaning of the amended Act);

APRA is taken, on the transfer date, to have made a declaration under section 12B of the amended Act that the business is to be treated as if it were life insurance business.

(7) The eligible benefit funds of the company are taken to be benefit funds established by the company in accordance with the requirements of the amended Act (as it applies subject to Part 2A of that Act).

(8) The existing benefit fund rules for the eligible benefit funds of the company are taken, on the transfer date, to have been approved under section 16L of the amended Act and to have come into force under section 16N of the amended Act on that date. This approval has effect subject to subitem (10).

(9) A provision of the existing benefit fund rules as so taken to be approved is not effective to the extent that the provision is inconsistent with:

(a) the amended Act; or

(b) any instrument made under the amended Act that is covered by the definition of this Act in the Schedule to the amended Act.

(10) If the existing benefit fund rules for an eligible benefit fund of the company are taken to have an approval by subitem (8), APRA may determine, in writing, that the approval ceases to have effect if:

(a) the rules are inconsistent as mentioned in subitem (9); and

(b) APRA considers that the inconsistency is contrary to the interests of any of the following persons:

(i) owners of policies referable to the benefit fund;

(ii) prospective owners of policies referable to the benefit fund.

A determination under this subitem can only be made during the period beginning on the day that is 18 months after the transfer date and ending on the day that is 30 months after the transfer date.

(11) If APRA makes a determination under subitem (10) in relation to an approval, the approval that those rules are taken to have by subitem (8) ceases to have effect on the day the determination is made.

(12) A reference in section 236 of the amended Act to a reviewable decision includes a reference to a decision to make a determination under subitem (10).

(13) Subject to subsection 77(6) of the amended Act, for the purposes of the amended Act, the financial year of the company is the period that, immediately before the transfer date, was the financial year of the company for the purposes of the Friendly Societies Code under which the company was then registered.

(14) APRA may give notice of any of the following matters in such way as APRA considers appropriate:

(a) the fact that a company is taken, by subitem (1), to have been granted registration under section 21 of the amended Act;

(b) the fact that APRA is taken, by subitem (5), to have made a declaration under section 12A of the amended Act in relation to business carried on by a company;

(c) the fact that APRA is taken, by subitem (6), to have made a declaration under section 12B of the amended Act in relation to business carried on by a company;

(d) the fact that existing benefit fund rules are taken, by subitem (8), to have been approved under section 16L of the amended Act;

(e) that fact that an approval referred to in paragraph (d) ceases to have effect because of subitem (11).