Document ID: chunk:federal_register_of_legislation:F2023L00735:body:0:p16
Version: federal_register_of_legislation:F2023L00735
Segment Type: other
Provision Reference: 
Character Range: 39685–42711

52.         For the purposes of paragraph 51, expected future bonus payments must be sufficient to distribute all of the policy owners' retained profits at the adjustment date as well as expected future profit allocations to participating policy owners. Best estimate assumptions at the adjustment date must be used to value the future bonus payments.

Distribution of Shareholders' Retained Profits (Australian Participating)
53.         For the purposes of subsection 62(5) of the Act, the distribution of shareholders' retained profits (Australian participating) from a statutory fund is prohibited if:
(a)          there is not, at the same time, a distribution of Australian policy owners' retained profits from the statutory fund; and
(b)          immediately after the distribution, the shareholders' retained profits (Australian participating) of the statutory fund that remain undistributed are less than 25 per cent (or such lower percentage as is specified in the life company's constitution) of the Australian policy owners' retained profits of the statutory fund that remain undistributed.

Unsecured borrowings of a statutory fund
54.         For the purposes of subsection 38(4) of the Act, a life company must not borrow money by means of unsecured borrowing, for the purposes of the business of a statutory 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 a statutory 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
55.         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.

Previous exercise of discretion
56.         A life company must contact APRA if it seeks to place reliance, for the purposes of complying with this Prudential Standard, on a previous exemption or other exercise of discretion made by APRA under a previous version of this Prudential Standard.

Form 1: Restructure of Statutory Funds
     1. Name and Australian Business Number of life company
2.             Date from which the restructure is proposed to have effect

3.             Required documentation
By indicating 'Yes' below, the signatory to this form confirms that the documents mentioned in Schedule 1 to this form have been attached.
          Yes                 No
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.             Signatures
This form must be signed by:
(a)          the principal executive officer of the life company;