Document ID: chunk:federal_register_of_legislation:F2013L01247:body:0:p4
Version: federal_register_of_legislation:F2013L01247
Segment Type: other
Provision Reference: 
Character Range: 8275–11285

required under this paragraph are referred to as 'regular investigations'.

    15.         Where an RSE licensee establishes a new defined benefit fund, the RSE licensee must appoint an RSE actuary to carry out a first investigation as at the date of the establishment or conversion to defined benefit status of the fund. For the purposes of this Prudential Standard, investigations required under this paragraph are referred to as 'initial investigations'.

Actuarial investigations – APRA direction
    16.         APRA may, in writing, direct an RSE licensee to appoint an RSE actuary, who may be the existing RSE actuary or another actuary, to undertake an actuarial investigation into the defined benefit fund if APRA considers, on reasonable grounds, that to do so would be in the best interests of beneficiaries. The RSE licensee must advise APRA of the name of the RSE actuary. If APRA notifies an RSE licensee that an RSE actuary is not acceptable to APRA, the RSE licensee must appoint a different actuary and advise APRA of the name of the actuary.

Actuarial investigations – interim investigation
    17.         An RSE licensee must:

       (a)          appoint an RSE actuary to carry out an actuarial investigation for a defined benefit fund as soon as practicable if:

           (i)            it appears to the RSE licensee that the fund is or may be in breach of its shortfall limit; and

           (ii)         a regular investigation scheduled under paragraph 14 is not due for six months or more; or

       (b)          seek actuarial advice from an RSE actuary as to whether action should be taken prior to the completion of the next regular investigation if:

           (i)            it appears to the RSE licensee that the fund is or may be in breach of its shortfall limit; and

           (ii)         the next regular actuarial investigation under paragraph 14 is due to commence within six months

    unless an investigation is currently taking place, a restoration plan is already in place under paragraph 32 or the fund is technically insolvent.

    18.         For the purposes of this Prudential Standard, investigations required under paragraph 17(a) are referred to as 'interim investigations'.

Actuarial investigations – sub-funds
    19.         Where a defined benefit fund contains one or more defined benefit sub-funds each sub-fund must be investigated in accordance with this Prudential Standard.[13]

Actuarial investigations – professional standards and guidance
    20.         An RSE actuary appointed to carry out an investigation must do so having regard to professional standards and guidance issued by the Institute of Actuaries of Australia, to the extent that they are not inconsistent with the requirements of this Prudential Standard. In the event of any inconsistency arising from application of the professional standards and this Prudential Standard, the requirements of this Prudential Standard prevail.

Report of the actuarial