Document ID: chunk:federal_register_of_legislation:F2019L00398:schedule:1:p3
Version: federal_register_of_legislation:F2019L00398
Segment Type: schedule
Provision Reference: sch 1 (pt 3/18)
Character Range: 7333–10213

acquisition of an asset that is to be an asset of the fund, but only where the period of the borrowing does not exceed 90 days and the amount borrowed does not exceed 10% of the value of the assets of the fund following the acquisition; or
           (d)          otherwise, for the sole purpose of the benefit of the business of the fund, but only where the borrowing would not result in the total amount of principal outstanding under all borrowings, excluding the amount of a subordinate debt, exceeding the greater of 10% of the assets of the fund or 50% of the amount of free assets of the fund.
       (2)          In this rule, free assets of the fund means assets in excess of the capital adequacy and solvency requirements in accordance with the capital adequacy standard and the solvency standard.
       Note: Section 29 of the Act provides that a transaction entered into in contravention of section 28 is of no effect unless the Federal Court makes an order in respect of the transaction, or the transaction is included in a class of transactions specified in these Rules to be transactions to which subsection 29(1) of the Act applies.

6A. Donating to medical research is a permitted purpose
       (1)          Donating to medical research is a purpose specified for the purposes of subparagraph 28(2)(a)(iv) of the Act.
       (2)          Any donations made from the assets of a health benefits fund to medical research in the period from 1 July 2015 until the commencement of this Rule, are permitted under paragraph 29(1)(b) of the Act.

Part 3 – Restructure of health benefits funds
7.                      Restructure under section 32 of the Act
       (1)          A private health insurer may apply to APRA in the approved form for approval under section 32 of the Act of a restructure of its health benefits fund or funds.
       (2)          In the application, the insurer must set out the restructure proposal (the restructure proposal) by:
           (a)          identifying the date on which, subject to APRA's approval and compliance with the requirements of the Act, the Regulations and the Rules, the restructure proposal is to take effect (the restructure date); and
           (b)          identifying which funds of the insurer are to be restructured under the restructure proposal (the restructuring funds); and
           (c)          identifying the transferring fund (the transferring fund), being the fund whose policies are to become referable to another fund or other funds of the insurer (the receiving fund(s)) on the restructure date; and
           (d)          identifying which policy group or groups of the transferring fund are to become referable to the receiving fund(s) on the restructure date; and
           (e)          stating the risk equalisation jurisdiction or jurisdictions for each receiving fund and other funds