Document ID: chunk:federal_register_of_legislation:F2019L00646:body:0:p16
Version: federal_register_of_legislation:F2019L00646
Segment Type: other
Provision Reference: 
Character Range: 40051–43224

of subsection 38(4) of the Act, a friendly society must not borrow money by means of unsecured borrowing, for the purposes of the business of an approved benefit fund, if the result would be that the total amount of principal outstanding under all unsecured borrowing relating to the fund would exceed 50 per cent of the free assets of the fund.

    In relation to an approved benefit fund, 'free assets' means the excess of the capital base over the Prudential Capital Requirement for the fund as defined in LPS 110 and LPS 112.

Adjustments and exclusions
    91.  APRA may, by notice in writing to a life company, adjust or exclude a specific requirement in this Prudential Standard in relation to that life company.

Determinations made under previous prudential standards
    92.  An exercise of APRA's discretion under a previous version of this Prudential Standard continues to have effect under this Prudential Standard.

Forms for use in relation to friendly society matters dealt with in this Prudential Standard

Form 1: Approval of friendly society benefit fund rules

     1. Name and Australian business number of friendly society

    2.             Name of proposed benefit fund

    3.             The items outlined below must be attached to this form:

       (a)          particulars of projections of life insurance business to which the fund relates for:

           (i)            whichever is the greater of the following periods:

               1. the period of the financing arrangements for that business; or

                2. 10 years; or

           (ii)         the period approved, in writing, by APRA;

       (b)          particulars of the proposed financing arrangements for the writing of new life insurance business to which the fund relates; and

       (c)          a report by the Appointed Actuary on the establishment of the benefit fund and the proposed benefit fund rules, in accordance with Attachment B of Prudential Standard CPS 320 Actuarial and Related Matters.

    4.             Contact person

    Please provide the contact details for the person to whom enquiries relating to this application should be directed.

    Name

    Position title

    Phone

    Email address

    5.             Address for correspondence

    Please provide the address to which correspondence relating to this application should be mailed.

    6.             Certification

By signing this form the signatory certifies that:

       (a)          The procedural requirements for the passing of the resolution in accordance with this Prudential Standard were met. Please attach a copy of the resolution.

       (b)          The proposed benefit fund rules comply with the requirements of this Prudential Standard. Please attach a copy of the proposed new benefit fund rule for approval.

    7.             Signature

This form must be signed by either:

       (a)          the principal executive officer of the friendly society; or

       (b)          an officer of the friendly society who has been authorised for that purpose by the principal executive officer, if the principal