Federal Register of Legislation - Australian Government

Primary content

PR No. 39 Rules/Other as made
These Rules set out the required method of adoption of benefit fund rules or amendments of approved benefit fund rules in order that they may be considered as having been adequately adopted.
Administered by: Treasury
Registered 05 Feb 2009
Gazetted 30 Jun 1999
Date of repeal 01 Jul 2011
Repealed by Life Insurance (prudential standard) determination No. 12 of 2010 - Prudential Standard LPS 700 Friendly Society Benefit Funds

 

 

Life Insurance Act 1995

 

PRUDENTIAL RULES No 39

 

 

 

 

ADEQUATE ADOPTION OF BENEFIT FUND RULES OR

AMENDMENTS OF APPROVED BENEFIT FUND RULES (S 16B(2))

 

 

 

I, Graeme John Thompson, a delegate of the Australian Prudential Regulation Authority (“APRA”), under subsection 252(1) of the Life Insurance Act 1995 (the “Act”) MAKE the following Prudential Rules for the purposes of paragraph 16B(2)(a) of the Act:

 

 

 

Methods of adoption - new benefit fund

 

1.  If a company has benefit fund rules in relation to a benefit fund that are not approved benefit fund rules, the company may adopt those rules, in accordance with paragraph 16B(2)(a) of the Act, by a resolution to approve those rules, made by either the board of directors, or a special resolution of members of the company in accordance with section 9 of the Corporations Law.

 

Methods of adoption - amendments of approved benefit fund rules

 

2.  If a friendly society proposes to amend its approved benefit fund rules in relation to an approved benefit fund, the friendly society may only adopt the amendment or amendments, in accordance with paragraph 16B(2)(a) of the Act, by:

 

(a)       a special resolution of the members of the friendly society in accordance with section 9 of the Corporations Law; or

 

(b)       a resolution of the friendly society’s board of directors in accordance with rule 3.

 

Where amendments of approved benefit fund rules may be made by board of directors

 

3.   A friendly society may make a resolution under subrule 2(b) if APRA is satisfied that:

 

(a)       the amendment is authorised or required by or under the Act or any other act or law; or

 

(b)       the amendment will not prejudice the rights of members who have an interest in the benefit fund; or

 

(c)       there is a patent error in the approved benefit fund rules, to correct that error; or

 


 

(d)       the amendment is in relation to a restructure or termination of an approved benefit fund or funds under section 52 or 53 of the Act, made in accordance with the requirements of Prudential Rules Nos 36 or 37.

 

This instrument commences on the transfer date (as defined in section 2 of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999).

 

 

 

 

Dated 24 June 1999

 

 

[Signed]

 

 

G J Thompson

Chief Executive Officer

Australian Prudential Regulation Authority