Document ID: chunk:federal_register_of_legislation:C2025C00135:section:53
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 53
Character Range: 152124–153339

53  Termination of statutory funds
 (1) The prudential standards may provide that:
 (a) a life company may apply to APRA to terminate one or more of its statutory funds; and
 (b) if the application is approved, the termination is to take place.
 (2) Without limiting the generality of subsection (1), the prudential standards may provide for the following:
 (a) requirements for making the application;
 (b) criteria for approving or refusing to approve the application;
 (c) requirements to notify interested parties of the outcome of the application;
 (d) matters connected with how the termination takes place, including the following:
 (i) distribution or application of assets;
 (ii) settling of liabilities;
 (iii) the timing of the termination;
 (e) requirements for the company to give APRA information following the termination.
 (3) APRA cannot approve the application if it considers that:
 (a) the termination will result in unfairness to the owners of policies referable to the fund or funds when those owners are viewed as a group; or
 (b) the company is being wound up when the application is made.

Division 4—Additional requirements for transfer of policies between statutory funds by endorsement