Federal Register of Legislation - Australian Government

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PR No. 46 Rules/Other as made
This Rule specifies various accounting procedures for the maintenance and administration of a single bank account.
Administered by: Treasury
Registered 06 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Repealed by Life Insurance (prudential standard) determination No. 12 of 2010 - Prudential Standard LPS 700 Friendly Society Benefit Funds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 46

 

 

 

 

SINGLE BANK ACCOUNT FOR FRIENDLY SOCIETY APPROVED

BENEFIT FUNDS (S 16H(4))

 

 

 

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 subsection 16H(4) of the Act (section 16H modifies the application of section 34 of the Act in relation to friendly societies):

 

 

 

Application

 

1.   A friendly society may only maintain a single bank account for money that constitutes assets of 2 or more approved benefit funds, in accordance with the following rules.

 

Benefit fund account and control account

 

2.   The friendly society must:

 

(a)       establish a benefit fund account in the records of each approved benefit fund; and

 

(b)       establish a control account in the records of the friendly society that records all the transactions in the bank account; and

 

(c)       reconcile the aggregate of the benefit fund accounts kept in the records of each approved benefit fund with the control account.

 

3.   The friendly society must ensure that the benefit fund account records all drawings from, and receipts by, the bank account to the extent that they relate to the respective approved benefit funds.

 

Allocation of income and expenses

 

4.   The friendly society must allocate to the approved benefit funds:

 

(a)       income received from the bank account equitably in accordance with their interest in the bank account; and

 

(b)       any costs to the benefit funds in accordance with their interest in the bank account.


2

 

 

 

Reconciliation of accounts

 

5.   Subject to rules 6 and 7, the balancing between benefit fund accounts and the control account must be carried out at least once every 7 days, or at such other time as permitted by APRA.

 

6.   In the case of a bank account relating to unitised contracts, the friendly society must carry out the reconciliation referred to in rule 5 at least as frequently as when the unit prices relevant to the contract concerned are quoted, but in any event, at least once every 7 days or at such other time as permitted by APRA.

 

7.   In the case of an investment in respect of which a friendly society conducts a mark to market exercise on a more frequent basis than once every 7 days, the reconciliation referred to in rule 5 must be carried out as least as frequently as the mark to market exercise.

 

 

 

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