Document ID: chunk:federal_register_of_legislation:F2023L00735:body:0:p2
Version: federal_register_of_legislation:F2023L00735
Segment Type: other
Provision Reference: 
Character Range: 3009–5865

bold are defined in Prudential Standard LPS 001 Definitions.

Restructure of statutory funds

Application for restructure of statutory funds
5.             Restructure of statutory funds is subject to the requirements set out in
section 52 of the Act and in this Prudential Standard.
6.             An application for a restructure of a statutory fund under section 52 of the Act must:
(a)          be made using the 'Form 1' to this Prudential Standard; and
(b)          be accompanied by the documents mentioned in 'Schedule 1' to Form 1 and be lodged with APRA at least 30 days before the proposed date of restructure.
7.             The applicant must, on request by APRA and within the time specified, produce to APRA:
(a)          a report by an independent actuary (being an actuary, other than the Appointed Actuary, who is approved by APRA in writing to perform duties as required by APRA and paid for by the life company for the purposes of this Prudential Standard) including statements on the same matters as those required of the Appointed Actuary; and/or
(b)          documents that are provided to policy owners or prospective policy owners of the company that contain details of the terms and conditions of:
(i)            policies of the kind that will remain referable to the transferring fund; and
(ii)         policies of the kind that will become referable to the receiving fund.

Approval of application for restructure of statutory funds
8.             Subject to this Prudential Standard, APRA may approve an application by a life company for a restructure of its statutory funds.
9.             APRA may refuse to approve an application by a life company for a restructure of its statutory fund or funds if it considers that immediately after the restructure:
(a)          a transferring fund; or
(b)          a receiving fund
    will not satisfy the requirements of Prudential Standard LPS 110 Capital Adequacy (LPS 110) and Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112).

Identification of policies
10.         Before a restructure has effect, a life company must make a written determination identifying the policies referable to a transferring fund that are to be referable to a receiving fund.

Transfer of assets
11.         A life company shall transfer assets from a transferring fund to a receiving fund as soon as practicable after the transfer of liabilities from the transferring fund to the receiving fund.
12.         Assets that are transferred from a transferring fund to a receiving fund shall be treated as assets of a receiving fund on and from the date the restructure has effect.
13.         The nature and value of assets to be transferred from a transferring fund to a receiving fund is to be determined by the life company, after receiving advice from the Appointed Actuary