Federal Register of Legislation - Australian Government

Primary content

PR No. 48 Rules/Other as made
Revokes and determines Prudential Rules 48 under subsection 252(1) of the Life Insurance Act 1995.
Administered by: Treasury
General Comments: This Determination revokes Prudential Rules No. 48 - Friendly Society Collection of Statistics (26/08/2005) with effect from 31/05/2006. Prudential Rules No. 48 - Collection of Statistics (19/04/2006) was revoked by Life Insurance (Prudential Rules) determination No. 2 of 2007 - Prudential Rules No. 12 - Restricted Investments Returns; Prudential Rules No. 26 - Collection of Statistics; Prudential Rules No. 35 - Financial Statements; Prudential Rules No. 47 - Friendly Society Financial Statements; Prudential Rules No. 48 - Collection of Statistics - Friendly Societies; Prudential Rules No. 49 - Contract Classification for the purpose of regulatory reporting to APRA with effect from 01/01/2008.
Registered 28 Apr 2006
Tabling HistoryDate
Tabled HR09-May-2006
Tabled Senate09-May-2006
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013
Table of contents.

Life Insurance (Prudential Rules) Determination No. 3 of 2006

Prudential Rules No 48 – Friendly Society Collection of Statistics

Life Insurance Act 1995

I, John Francis Laker, Chair of APRA, a delegate of APRA, under subsection 252(1) of the Life Insurance Act 1995 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:

·        REVOKE as from 31 May 2006 the Prudential Rules No. 48 (made on 26 August 2005 under subsection 252(1) of the Act for the purposes of subsections 244(1) and (2) of the Act); and

·        MAKE the Prudential Rules No. 48 set out in the Schedule for the purposes of subsections 244(1) and (2) of the Act.

This Determination shall take effect upon registration on the Federal Register of Legislative Instruments.

 

 

Dated   19 April 2006

 

 

 

 

[Signed]

 

J F Laker

Chair

 

 

 


 

Interpretation

In this Determination

a)      APRA means the Australian Prudential Regulation Authority.

b)      Friendly society means a company registered under the Act which is a friendly society

 

Schedule      

Prudential Rules No. 48 comprise the 37 pages commencing on the following page.

 

 


Prudential Rules No. 48

Collection of Statistics

Life Insurance Act 1995 (ss 244(1) and 244(2))

These Prudential Rules are made under subsection 252(1) of the Life Insurance Act 1995 (the Act) for the purposes of subsections 244(1) and 244(2) of the Act and apply to friendly societies.

 

Application

1.             These Rules:

 

(a)           take effect on 31 May 2006; and

(b)          apply in relation to a quarter ending on or after 31 May 2006.

2.             In these Rules;

(a)           “Category 1” comprises Forms A1, B1, B2 Part i, B3 to B12, B15, C1, C2, C3 Part i, C4 to C6, C9, C10, C12, C14 to C17, D1 and E1;

(b)          “Category 2” comprises Forms A1, B8 to B12, B15, C14 to C17, D1 and E1;

(c)           “quarter” means:

                                (i)                   any of the three month periods ending 31 March, 30 June, 30 September or 31 December; or

                              (ii)                    a period approved by APRA in relation to a particular friendly society.

3.             Despite rule 2(c), if at the commencement of these Prudential Rules, the quarter of a friendly society is a period other than that specified in rule 2, the friendly society may retain that period as its quarter.

 

APRA must collect statistics

4.             Friendly societies must provide, in electronic form to APRA, the statistics to which the Forms in the Schedule relate, at such times and in such manner as prescribed in these rules.

When the statistics must be collected

5.             Subject to rules 6, 7 and 8, a friendly society  must provide the statistics to APRA that are required:

(a)           in Category 1:

                                (i)                   no later than 15 business days after the end of the quarter; and

                              (ii)                   in the form and manner set out in the Schedule; and

(b)          in Category 2:

                                (i)                   no later than 3 months after the end of the year; and

                              (ii)                   in the form and manner set out in the Schedule

6.             APRA may in its discretion from time to time and by notice in writing to one or more life companies extend any of the deadlines in rule 5 for the period and on the conditions (if any) specified in the notice.

7.             Despite rule 5, friendly societies that have a quarter ending on 31 May must provide the statistics to APRA for the May 2006 quarter that are required in Category 1 no later than 9 weeks after the end of the May 2006 quarter.  Friendly societies that have a quarter ending on 30 June must provide the statistics to APRA for the June 2006 quarter that are required in Category 1 no later than 9 weeks after the end of the June 2006 quarter.

8.             Despite rule 5, friendly societies that have a year ending on 31 May must provide the statistics to APRA for the May 2006 year that are required in Category 2 no later than 19 weeks after the end of the May 2006 year.  Friendly societies that have a year ending on 30 June must provide the statistics to APRA for the June 2006 year that are required in Category 2 no later than 19 weeks after the end of the June 2006 year.  

 

Actuarial valuations and calculations must be in accordance with actuarial standards

9.             Actuarial valuations and calculations included in, or used in the preparation of, the statistics must be in accordance with actuarial standards made by the Life Insurance Actuarial Standards Board, as in force from time to time.

 

Statistics must be expressed in Australian dollars

10.         Amounts of money in the statistics must be expressed in units of one, one thousand or one million Australian dollars.  (All Forms relating to a particular benefit fund must use the same units.)

11.         A foreign currency amount must be converted to Australian dollars at the market exchange rate prevailing at the end of the period to which the statistics in which the amount is included relate.

 

Statistics must be consistent with financial statements

12.         The statistics provided in accordance with these rules must be consistent with, and prepared on the same basis as, the friendly society’s regulatory financial statements prepared in accordance with Prudential Rules No 47, except to the extent that compliance with these Prudential Rules No 48 or with the requirements of specific forms necessitates deviation from such regulatory financial statements.  In particular:

(a)           class, category and subcategory classifications; and

(b)          policy liability valuations;

           must be consistent with the regulatory financial statements.

 

Statistics must be consistent between forms

13.         The statistics in Category 1, Forms B3, B4, B7 to B12, B15, C4, C5, C10, C12 and C14 to C17 must be consistent with, and prepared on the same basis as, the statistics in Category 1, Forms B1, B2, B5, B6, C1 to C3, C6 and C9, except to the extent that compliance with these rules or with the specific requirements of particular forms necessitates deviation from the basis for preparing the statistics in forms B1, B2, B5, B6, C1 to C3, C6 and C9.

 

Statistics must be prepared on a look-through basis where this basis is applied under solvency and capital adequacy standards

14.         Where a look-through basis is adopted in calculating solvency and capital adequacy under actuarial standards made by the Life Insurance Actuarial Standards Board, the statistics in Forms B8 to B12, B15, C14 to C17 and E1 must be prepared on the same basis.

 

[David1] Contract classification

15.         In relation to the reporting of revenue, expense and liabilities of a benefit fund, the statistics in forms B1, B3, B4, B8, B13 and B14 must deal separately with:

(a)           life insurance business that consists of life insurance contracts;

(b)          life insurance business that consists of investment-linked contracts; and

(c)           life insurance business that consists of other life investment contracts.

 

References to controlled entities

16.         For the purposes of these rules, whether one entity controls another entity is to be determined in the same way as under the Corporations Act 2001.

 

How the statistics must be approved on behalf of the friendly society

17.         The statistics must include a statement that they comply with the requirements of these Prudential Rules No 48 and have been approved by :

(a)           the Managing Director or Chief Executive Officer; and

(b)          a Director or the Secretary.

 

Certain statistics must be audited

18.         The statistics in Category 2 must be audited by the approved auditor of the friendly society.

19.         Those statistics must be accompanied by a report signed by the approved auditor stating:

(a)           that they have been prepared in accordance with these rules; and

(b)          that the records of the friendly society on which they are based properly record the affairs and transactions of the friendly society; and

(c)           that they truly represent the financial position of the friendly society prepared in accordance with these rules.

 

Review of APRA’s decisions concerning approval of quarters

20.         A decision by APRA approving, or refusing to approve, a period under rule 2 of these rules is a “financial period decision”.

21.         Subsections 236(2) to (10) and section 237 of the Act apply in relation to a request for reconsideration and application for review of a financial period decision as if, in those provisions of the Act:

(a)           “person affected by a reviewable decision” means a friendly society in relation to which a financial period decision has been made; and

(b)          “reviewable decision” means a financial period decision.

22.         When APRA notifies a friendly society of a financial period decision, APRA must inform the company in writing that:

(a)           the company may, if dissatisfied with the decision, seek a reconsideration of the financial period decision by APRA in accordance with rule 21; and

(b)          the company may, if dissatisfied with the reconsideration of the financial period decision, apply to the Administrative Appeals Tribunal for review of the reconsideration in accordance with rule 21.

23.         When APRA notifies a friendly society of the reconsideration of a financial period decision, APRA must inform the company in writing that the company may, if dissatisfied with the reconsideration, apply to the Administrative Appeals Tribunal for review of the reconsideration in accordance with rule 21.

24.         A failure by APRA to comply with rule 22 or 23 does not affect the validity of the financial period decision or of any reconsideration of the financial period decision concerned.

 

Health fund returns to be submitted to APRA

25.         Jointly regulated friendly societies which are subject to the financial reporting requirements imposed by the Private Health Insurance Administration Council (PHIAC) must provide a copy of the returns which are submitted to PHIAC to APRA within four weeks of the date on which each return is required to be submitted to PHIAC.

[David2] [RGE3] [David4] 

 

 

 

[David5] 


 




 


 

 


 



 

 









 

                                                                                             

 









 


 [David1]I think para 18 sufficies, although I think it sits better with para 12.  However, a version of para 19 may be appropriate in PR 48.

 [David2]Do we need something about publication of statistics?  See PR 26.

 [RGE3]I considered this but rejected it as we need the Stats people to agree to publish. I presume this needs to go through a committee like @APRA first and I don’t think we have time. Also, we should have consulted on this, so I suggest we consult as a separate issue after @APRA agrees to publish.

 [David4]OK.

 [David5]Do we need something about publication of statistics?  See PR 26.