Document ID: chunk:federal_register_of_legislation:F2019L00646:body:0:p1
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Life insurance (prudential standard) determination No. 1 of 2019

Prudential Standard LPS 700 Friendly Society Benefit Funds

Life Insurance Act 1995
I, Pat Brennan, delegate of APRA:

    (a) under subsection 230A(5) of the Life Insurance Act 1995 (the Act) REVOKE Life Insurance (prudential standard) determination No. 16 of 2012, including Prudential Standard LPS 700 Friendly Society Benefit Funds made under that Determination; and

    (b) under subsection 230A(1) of the Act DETERMINE Prudential Standard LPS 700 Friendly Society Benefit Funds, in the form set out in the Schedule, which applies to all life companies that are friendly societies.

This instrument takes effect on 1 July 2019.

Dated: 17 April 2019

[Signed]

Pat Brennan

Executive General Manager
Policy and Advice Division

Interpretation
In this Determination:

APRA means the Australian Prudential Regulation Authority.

friendly society has the meaning given in section 16C of the Act.

life company has the meaning given in the Dictionary to the Act.

Schedule

Prudential Standard LPS 700 Friendly Society Benefit Funds comprises the 35 pages commencing on the following page.

Prudential Standard LPS 700

Friendly Society Benefit Funds

Table of Contents

Authority
Application
Interpretation
Content of approved benefit fund rules
Operational requirements
Approval and amendment of benefit fund rules and consequential approval of a friendly society's constitution.......
Restructure of approved benefit funds
Termination of approved benefit funds
Unsecured borrowings of an approved benefit fund
Adjustments and exclusions
Determinations made under previous prudential standards

Forms

Form 1: Approval of friendly society benefit fund rules
Form 2: Approval of amendment of approved benefit fund rules
Form 3: Approval of consequential amendments of company's constitution on initiative of a friendly society
Form 4: Approval of consequential amendments of a company's constitution as required by APRA
Form 5: Restructure of approved benefit funds
Schedule 1 to Form 5
Form 6: Termination of approved benefit funds
Schedule 1 to Form 6

Authority
     1.    This Prudential Standard is made under paragraph 230A(1)(a) of the Life Insurance Act 1995 (the Act).

Application
    2.      This Prudential Standard applies to life companies that are friendly societies pursuant to section 16A of the Act.[1]

    3.      This Prudential Standard applies to friendly societies from 1 July 2019.

Interpretation
    4.      Terms that are defined in Prudential Standard LPS 001 Definitions appear in bold the first time they are used in this Prudential Standard.

Content of approved benefit fund rules
General content
    5.      Subject to, and for the purposes of, the requirements of the Act as modified, a friendly society must have approved benefit fund rules that adequately provide for, amongst other things, the following matters with respect to each approved benefit fund:

       (a)          the name of the approved benefit fund;

       (b)          in addition to matters dealt with under the constitution