Document ID: chunk:federal_register_of_legislation:F2019L00646:body:0:p6
Version: federal_register_of_legislation:F2019L00646
Segment Type: other
Provision Reference: 
Character Range: 13883–16683

under subsection 16H(4) of the Act, where it complies with paragraphs 27 to 32.

    27.  In respect of a single bank account, a friendly society must:

       (a)          establish a benefit fund account in the records of each approved benefit fund;

       (b)          establish a control account in the records of the friendly society that records all the transactions in the bank account; and

       (c)          reconcile the aggregate of the benefit fund accounts kept in the records of each approved benefit fund with the control account.

    28.  In respect of a single bank account, a friendly society must ensure that the benefit fund account records all drawings from, and receipts by, the bank account to the extent that they relate to the respective approved benefit funds.

    29.  In respect of a single bank account, a friendly society must allocate to the approved benefit funds:

       (a)          income received from the bank account equitably in accordance with their interest in the bank account; and

       (b)          any costs to the approved benefit funds in accordance with their interest in the bank account.

    30.  Subject to paragraphs 31 and 32 the balancing between benefit fund accounts and the control account must be reconciled at least once every seven days, or at such other time as permitted by APRA.

    31.  In respect of a single bank account relating to unitised contracts, a friendly society must carry out the reconciliation referred to in paragraph 30 at least as frequently as when the unit prices relevant to the contract concerned are quoted, but in any event, at least once every seven days or at such other time as permitted by APRA.

    32.  In the case of a single bank account investment in respect of which a friendly society conducts a mark to market exercise on a more frequent basis than once every seven days, the reconciliation referred to in paragraph 30 must be carried out as least as frequently as the mark to market exercise.

Approval and amendment of benefit fund rules and consequential approval of a friendly society's constitution
Adequate adoption
    33.  In respect of the benefit fund rule approvals and benefit fund rule amendments dealt with in this Prudential Standard, a friendly society must comply with the adequate adoption requirements under subsection 16B(2) of the Act and in doing so must give effect to the requirements set out in paragraphs 34 and 35.

    34.  For the purpose of subsection 16B(2) of the Act, a friendly society adopting new benefit fund rules, or adopting amendments to existing approved benefit fund rules, may only do so by:

       (a)          a special resolution of the members of the friendly society (or a class of members as determined by APRA) in accordance