Document ID: chunk:federal_register_of_legislation:F2023L00735:body:0:p15
Version: federal_register_of_legislation:F2023L00735
Segment Type: other
Provision Reference: 
Character Range: 37025–39952

OPRP starting amount adjustment equals the AASB 17 SRPN starting amount adjustment in respect of overseas participating business of the fund multiplied by the 'weighted average PH multiple' calculated according to paragraph 48. Where a statutory fund contains overseas participating business with SH share of zero percent, the life company must obtain the written approval of APRA for the method of calculating the AASB 17 OPRP starting amount adjustment of the fund. Where the policy liabilities for participating business are determined using the VSA led method the AASB 17 OPRP starting amount adjustment is zero.
48.         The weighted average PH multiple must be calculated as the average of the PH multiple for each sub-group of overseas participating business, weighted by the proportion that sub-group represents of the total AASB 17 change in shareholder retained profits of the fund allocated to overseas participating business categories (as defined in subparagraph 36(b)).

Other requirements
49.         If, according to LPS 340, APRA approves a change in the method used to determine the policy liabilities for participating business (from the VSA led method to the accounting standard led method or vice versa), APRA may require the life company to make further adjustments to the starting amounts.
50.         At least 6 months before the end of the life company's financial year commencing on the AASB 17 adoption date, the Appointed Actuary of a life company must provide written advice to the company regarding the AASB 17 starting amount adjustments. A summary of this advice must be included in the Financial Condition Report for the financial year commencing on the AASB 17 adoption date.
51.         The advice of the Appointed Actuary must assess the impact of the AASB 17 liability restatements on participating policy owners. Where the Appointed Actuary advises that the present value at the adjustment date of expected future bonus payments to either Australian participating policy owners or overseas participating policy owners reduces as a result of applying the AASB 17 starting amount adjustments defined in paragraphs 43 and 47:
(a)          the Appointed Actuary must recommend alternative values for the AASB 17 starting amount adjustments;
(b)          the recommended alternative values must be audited;
(c)          the life company must submit the audited advice to APRA at least 6 months before the end of the life company's financial year commencing on the AASB 17 adoption date; and
(d)          the life company must use the alternative starting amount adjustments instead of those defined in paragraphs 43 and 47.
52.         For the purposes of paragraph 51, expected future bonus payments must be sufficient to distribute all of the policy owners' retained profits at the adjustment date as well as expected future profit allocations to participating policy owners. Best estimate