Document ID: chunk:federal_register_of_legislation:C2025C00135:section:52
Version: federal_register_of_legislation:C2025C00135
Segment Type: section
Provision Reference: s 52
Character Range: 150109–152124

52  Restructure of statutory funds
 (1) The prudential standards may provide that:
 (a) a life company may apply to APRA to restructure its statutory funds by making one or more policies that are referable to a statutory fund or funds of the company become referable to another statutory fund or funds of the company (whether existing or proposed); and
 (b) if the application is approved, the restructure is to take place.
 (2) The fund, or each fund, to which the policies are referable before the restructure is a transferring fund, and the fund, or each fund, to which the policies will become referable after the restructure is a receiving fund.
 (3) 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 persons of the outcome of the application;
 (d) matters connected with how the restructure takes place, including the following:
 (i) policies becoming referable to a receiving fund or funds;
 (ii) policy and other liabilities becoming referable to a receiving fund or funds;
 (iii) assets of a transferring fund becoming assets of a receiving fund or funds;
 (iv) the timing of the restructure;
 (v) if a receiving fund is a proposed new statutory fund—the establishment of that fund;
 (e) requirements for the company to give APRA information following the restructure.
 (4) APRA cannot approve the application if it considers that:
 (a) the restructure will result in unfairness to the owners of policies referable to a transferring fund or a receiving fund when those owners are viewed as a group; or
 (b) immediately after the restructure:
 (i) a transferring fund will not satisfy the prudential standards in relation to solvency; or
 (ii) a receiving fund will not satisfy the prudential standards in relation to solvency; or
 (c) the company is being wound up when the application is made.