Document ID: chunk:federal_register_of_legislation:F2018L00486:front:0:p2
Version: federal_register_of_legislation:F2018L00486
Segment Type: other
Provision Reference: 
Character Range: 2700–5674

the nature and terms of the transfer or amalgamation, and the Court order confirming the scheme.
Details on these requirements are contained below.

Prudential Standard
     1. This Prudential Standard, made under section 32 of the Insurance Act 1973 (the Act), applies to all general insurers authorised under the Act.
     2. A transfer or amalgamation of insurance business can occur only under a scheme confirmed by the Federal Court (unless it is undertaken in response to a direction from the Australian Prudential Regulation Authority (APRA)[1]).  This Prudential Standard sets out specific requirements in relation to documentation, notification, public inspection and an application to the Court.
     3. In addition, any transfer or amalgamation of insurance business is subject to the provisions of the Insurance Acquisitions and Takeovers Act 1991 (IATA).  The IATA requires compulsory notification of proposals involving the acquisition of any or all of the interests, rights or benefits of an insurer under contracts of insurance where that transfer amounts to 15% or more of the transferring insurer's premiums or outstanding claims liabilities.

Documents to be Provided to APRA Prior to an Application Being Made to the Court[2]
    4.             An application to the Court for confirmation of a scheme cannot be made unless, amongst other things, an insurer provides a copy of the scheme and any actuarial reports on which the scheme is based to APRA.[3]
    5.             These documents must be provided to APRA before:
       (a)          the relevant notice of intention to apply to the Court for confirmation of the scheme is published;[4]  and

       (b)          the summary of the scheme (approved by APRA) has been given to each affected policyholder.[5]

    6.             In practice, the documents will need to be given to APRA before APRA can approve the summary of the scheme, and it is expected that companies will discuss their intentions with APRA at the earliest opportunity.

Notification Requirements[6]
    7.             An application to the Court for confirmation of a scheme cannot be made unless, amongst other things, a notice of intention to make the application has been published by the insurer.
    8.             Before publishing a notice of intention an insurer must first secure APRA's approval of the summary of the scheme.[7]
    9.             The insurer must publish the notice of intention in a form approved by APRA:
(a)          in the Government Gazette; and

(b)         in one or more newspapers, approved by APRA, circulating in each State and Territory in which an affected policyholder resides.

    10.         The notice must, at a minimum:
(a)          state the places, dates and times that an affected policyholder may obtain a copy of the scheme and any associated documentation; and

(b)         give the address of each place at which a copy of the scheme and any associated documentation