Document ID: chunk:federal_register_of_legislation:F2017L01306:body:0:p8
Version: federal_register_of_legislation:F2017L01306
Segment Type: other
Provision Reference: 
Character Range: 18724–21644

the board of that body; and

       (f)          details of risk management systems (including group reporting arrangements) applying to the transferred business; and

       (g)         written assurances from the board of the receiving body that it:

          (i)           is satisfied, on the basis of appropriate due diligence, that the liabilities and assets transferred are fairly valued; and

          (ii)        will have management resources, systems and controls in place to manage effectively the business transferred; and

          (iii)      will meet all APRA requirements and directions, and will have systems in place to meet all prudential and statistical requirements; and

          (iv)       will observe any prudential requirements imposed by, or agreed with, APRA relating to the transfer; and

       (h)         where the receiving institution is foreign owned or incorporated outside Australia, written advice from the home supervisor as to whether it consents to the transfer of business.

   Note   For the purposes of subsection 10(2) of the Act, a third letter (to be sent after adoption of the transfer has taken place) is prescribed in rule 15 below.

Prescribed adoption processes (paragraph 13(a) of the Act)

    11.  Rules 12 to 14 below prescribe ways in which a transfer may be adopted by or on behalf of a body, or by or on behalf of members of a body, for the purposes of paragraph 13(a) of the Act.

         Note 1  Parallel legislative obligations

   In addition to the prescribed or varied (where applicable) adequate adoption process, a transferring or receiving body may be required to comply with additional requirements.

   Where the transfer of business proposal would vary or cancel class rights of members under Part 2F.2 of the Corporations Act 2001, the procedures in the Corporations Act 2001 for holding meetings of different classes will be required.  Part 5 of Schedule 4 to the Corporations Act 2001 may also apply.

   Applicants should also consider any obligations that may arise towards policy owners or depositors from the reporting obligations in Chapter 7 of the Corporations Act 2001 including, but not limited to, those arising under section 1017B in planning a transfer of business.

   Applicants should also consider the laws referred to in section 43 of the Act and the way those laws apply, as prescribed in the Financial Sector (Transfers of Business) Regulations 1999.

   Note 2   A prescribed way of adopting a transfer will only constitute 'adequate adoption' (within the meaning of section 13 of the Act) of a transfer if, in accordance with paragraph 13(b) of the Act, APRA considers that the adoption of the transfer in that way adequately takes into account the interest of members of the body.

   Note 3   Before proceeding to adopt a transfer, the applicants should discuss with APRA whether APRA is likely to consider that their