Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p55
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 55/71)
Character Range: 530686–533557

Prescription of standards—winding‑up of accumulation funds
  For the purposes of subsection 31(1) of the Act, the standards contained in regulations 9.43, 9.44 and 9.45 are prescribed as standards applicable to the operation of accumulation funds which this Division applies.

9.43  Winding‑up of accumulation funds
 (1) Subject to subregulation (4), the trustee of an accumulation fund to which this Division applies that is in a period of technical insolvency must initiate winding‑up proceedings in accordance with this Division if;
 (a) the fund fails to comply with regulation 9.38 or 9.39 during a period of technical insolvency; or
 (b) the fund is not solvent within the meaning of that term in subregulation 9.35(2) on the date on which that period ends;
and regulation 9.44 does not apply.
 (2) Winding‑up proceedings initiated under subregulation (1) must be carried out in accordance with this Division.
 (3) Subject to subregulation (4), if a trustee of an accumulation fund to which this Division applies initiates winding‑up proceedings in relation to the fund otherwise than under subregulation (1), the winding‑up proceedings must be carried out in accordance with this Division.
 (4) This regulation does not apply to an accumulation fund in respect of which the Regulator formulates a scheme for the winding‑up of the fund.

9.44  Alternative programs approved by the Regulator for accumulation funds
 (1) If, as an alternative to commencing winding‑up proceedings, the fund's actuary recommends in writing to the trustee of the fund a specified course of action, the trustee, if he or she wishes to accept the recommendations of the fund's actuary, must, within 21 days after receiving the recommendations, forward a copy of the recommendations to the Regulator, together with a request that the Regulator approve the recommendations.
 (2) If the Regulator approves the recommendations of the fund's actuary and notifies the trustee in writing of the approval, the trustee must follow the specified course of action as recommended.

9.45  Accumulation fund winding‑up proceedings—priorities
 (1) If a trustee of an accumulation fund initiates winding‑up proceedings in relation to the fund, priority must be given to the liabilities of the fund in accordance with this regulation.
 (2) The first charge on the assets of the fund must be the liability in respect of the administration and other costs associated with the winding‑up proceedings.
 (3) In determining the priorities to be given to the remaining liabilities of the fund, the trustee must ensure compliance with subregulations (4) and (5).
 (4) If the fund is solvent at the winding‑up date, the amount allocated to each individual member of the fund at the winding‑up date must not be less than the minimum guaranteed benefit of the member.
 (5) If the fund is technically insolvent at the