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Lloyd's security trust fund instrument No. 2 of 2017

Insurance Act 1973

I, Heidi Richards, delegate of APRA, under subsection 70(1) of the Insurance Act 1973 (the Act), MAKE these rules, in the form set out in the Schedule to this instrument, titled "Lloyd's Security Trust Fund Rules", that are applicable to the operation of designated security trust funds.

This instrument takes effect on the date of registration on the Federal Register of Legislation.

Dated: 12 April 2017

[Signed]

_________________________________

Heidi Richards
General Manager
Policy & Advice Division

Interpretation

      In these rules:

APRA means the Australian Prudential Regulation Authority.

designated security trust fund has the meaning given in section 69 of the Act.

Schedule

Lloyd's Security Trust Fund Rules comprises the 13 pages commencing on the following page.

Lloyd's Security Trust Fund Rules

Table of contents

Name of rules
Commencement
Authority
Application
Interpretation
Compliance with the Act and trust deed
Assets
Valuation of assets
Liabilities
Suspense account
Records
Notices
Giving information
Review of APRA's decisions
Determinations made under previous instrument
Attachment A – Accounts and statements
Attachment B - Trustee audit requirements

Name of rules
     1. These rules are the Lloyd's Security Trust Fund Rules.

Commencement
2.             These rules commence on the date of registration on the Federal Register of Legislation.

Authority
3.             These rules are made under subsection 70(1) of the Insurance Act 1973 (the Act).

Application
4.             These rules apply to all trustees in respect of their operation of designated security trust funds.

Interpretation
5.             In these rules:[1]

"Australian Auditing Standards" means is a reference to the Australian Auditing Standards issued by the Auditing and Assurance Standards Board (AUASB) as in force from time to time;

'bank' means an authorised deposit-taking institution within the meaning of subsection 5(1) of the Banking Act 1959 (the Banking Act), but does not include a building society, credit union, provider of purchased payment facilities or an authorised non-operating NOHC within the meaning of subsection 5(1) of the Banking Act;

"Lloyds Security Trust Fund Arrangements" means a legislative instrument, as in force from time to time, made under subsection 68(1) of the Act; and

'trustee' means any trustee of a designated security trust fund.

Compliance with the Act and trust deed
6.             A trustee must comply with:

       (a)          provisions of the Act applicable to trustees; and

       (b)          the trust deed of the security trust fund of which they are the trustee and approved by APRA under the Lloyd's Security Trust Fund Arrangements.

Assets
7.             A trustee must hold the assets of the designated security trust fund of which they are the trustee and apply them in accordance with paragraphs 8 to 11.

8.             An asset of a designated security trust fund must be