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Life Insurance Regulations 1995

Authoritative Version
  • - F2016C00086
  • In force - Superseded Version
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SR 1995 No. 141 Regulations as amended, taking into account amendments up to Treasury and Other Laws Amendment (Private Health Insurance Prudential Supervision) Regulation 2015
Principal Regulations
Administered by: Treasury
Registered 21 Jan 2016
Start Date 17 Dec 2015
End Date 19 Dec 2015

Life Insurance Regulations 1995

made under the

Life Insurance Act 1995

Compilation No. 23

Compilation date:                              17 December 2015

Includes amendments up to:            SLI No. 226, 2015

Registered:                                         21 January 2016

 

About this compilation

This compilation

This is a compilation of the Life Insurance Regulations 1995 that shows the text of the law as amended and in force on 17 December 2015 (the compilation date).

This compilation was prepared on 13 January 2016.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on ComLaw for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on ComLaw for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Part 1—Preliminary                                                                                                             1

1............................ Name of regulations............................................................ 1

1.02....................... Commencement.................................................................. 1

1.03....................... Definitions.......................................................................... 1

Part 2—Explanation of key concepts                                                                         2

2.01....................... Contract to pay annuity—term prescribed........................... 2

Part 2A—Special provisions relating to life companies that are friendly societies             3

2A.01.................... Modifications of the Act in its application to friendly societies                3

Part 2B—Special provisions relating to Australian branches of foreign life insurance companies         4

2B.01..................... Eligible foreign life insurance company.............................. 4

Part 4—Statutory funds of life companies                                                             5

4.00....................... Notice of establishment of statutory fund........................... 5

4.00A.................... Charges over the assets of statutory funds: derivative contracts (Act, s 38(3)(c))    5

4.00B..................... Charges over the assets of approved benefit funds (Act s 38(3)(c))        7

4.01A.................... Prohibited investments........................................................ 7

Part 9—Transfers and amalgamations of life insurance business           9

9.01....................... Copy of scheme for transfer etc. to be given to APRA....... 9

9.02....................... Notice of intention to apply for confirmation of scheme..... 9

9.03....................... Application for confirmation of scheme............................ 10

9.04....................... Documents to be lodged with APRA............................... 10

Part 10—Provisions relating to policies                                                                  12

10.01..................... Assignment of life policy—prescribed form..................... 12

10.02..................... Notice of change of trustee of life policy.......................... 12

10.04..................... Division 4 of Part 10 of the Act to apply to certain life policies with modifications (Act, s 206(3))        12

10.05..................... Interest on overdue premiums—prescribed terms............. 12

10.05A.................. Unclaimed money—statements......................................... 13

10.05AA............... Unclaimed money—interest payable................................. 14

10.05B................... Public notice of unclaimed moneys................................... 15

10.06..................... Calculation of net claim value of policy............................ 15

Part 11—Miscellaneous                                                                                                    16

11.01..................... Fee for inspection or copying of documents..................... 16

Part 13—Dictionary                                                                                                            17

13.02..................... Definition of superannuation policy—dictionary.............. 17

Schedule 2—Modification of Division 4 of Part 10 of the Act (Surrender values, paid‑up policies and non‑forfeiture of policies) 18

Schedule 4—Forms                                                                                                     19

Form 2—Memorandum of transfer for assigning rights under a life policy         19

Life Insurance Act 1995................................................................................... 19

Form 3—Statement of unclaimed money                                                              20

Life Insurance Act 1995................................................................................... 20

Form 4—Statement of money paid after the end of the calendar year 21

Life Insurance Act 1995................................................................................... 21

Form 5—Unclaimed money disk lodgment form                                             22

Life Insurance Act 1995................................................................................... 22

Schedule 5—Modifications of the Act in relation to friendly societies        23

Schedule 7—Approved bodies                                                                       29

Endnotes                                                                                                                                    32

Endnote 1—About the endnotes                                                                            32

Endnote 2—Abbreviation key                                                                                33

Endnote 3—Legislation history                                                                             34

Endnote 4—Amendment history                                                                           36

 


Part 1Preliminary

  

1  Name of regulations

                   These regulations are the Life Insurance Regulations 1995.

1.02  Commencement

                   These Regulations commence on 1 July 1995.

1.03  Definitions

                   In these regulations:

Act means the Life Insurance Act 1995.

CPI means the Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Bureau of Statistics.

Friendly Societies Code has the meaning given by item 1 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.

transfer date has the meaning given by section 2 of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.

Part 2Explanation of key concepts

  

2.01  Contract to pay annuity—term prescribed

                   For the purposes of paragraph 9(1)(d) of the Act, the term of 10 years is prescribed as the term that the term of an annuity paid under a contract must exceed for the contract to constitute a life policy.

Part 2ASpecial provisions relating to life companies that are friendly societies

  

2A.01  Modifications of the Act in its application to friendly societies

                   The Act is modified in its application to friendly societies as set out in Schedule 5.

Note:          The Act applies to friendly societies subject to the provisions of Part 2A of the Act. See also section 16ZC of the Act.

Part 2BSpecial provisions relating to Australian branches of foreign life insurance companies

2B.01  Eligible foreign life insurance company

                   For paragraph 16ZD(1)(e) of the Act, the conditions are any of the following:

                     (a)  the body corporate:

                              (i)  is authorised to carry on life insurance business in the United States of America; and

                             (ii)  is incorporated in the United States of America;

                     (b)  the body corporate:

                              (i)  is authorised to carry on life insurance business in New Zealand; and

                             (ii)  is incorporated in New Zealand;

                     (c)  the body corporate:

                              (i)  is authorised to carry on life insurance business in Japan; and

                             (ii)  is incorporated in Japan;

                     (d)  the body corporate:

                              (i)  is authorised to carry on life insurance business in Korea; and

                             (ii)  is incorporated in Korea.

Part 4Statutory funds of life companies

  

4.00  Notice of establishment of statutory fund

             (1)  A notice under paragraph 33(1)(d) of the Act of the establishment of a statutory fund must contain particulars of:

                     (a)  the classes of life insurance business to be carried on by the company within the fund; and

                     (b)  the categories of life insurance business to be carried on by the company within each of those classes; and

                     (c)  the kinds of policies to be written by the company within those categories; and

                     (d)  proposed financing arrangements for the writing of new life insurance business to which the fund relates; and

                     (e)  projections of the life insurance business to which the fund relates for whichever is greater of the following periods:

                              (i)  the period of the financing arrangements for that business; or

                             (ii)  10 years; and

                      (f)  a statement of the accuracy of the particulars referred to in paragraph (e) by the appointed actuary of the company.

             (2)  For the purposes of subsection 33(2) of the Act, the notice must be given in writing within 14 days after establishment of the fund.

             (3)  This regulation does not apply to a life company that is a friendly society.

4.00A  Charges over the assets of statutory funds: derivative contracts (Act, s 38(3)(c))

             (1)  A life company may give a charge over, or in relation to, an asset of a statutory fund if:

                     (a)  the charge is given in relation to a derivatives contract entered into:

                              (i)  by, or on behalf of, the life company; or

                             (ii)  by a broker on the instructions, or on account, of the company; or

                            (iii)  by a broker for the benefit of the company; and

                     (b)  the charge is given in order to comply with the rules of an approved body (as defined in subregulation (2)) that requires the performance of obligations in relation to the derivatives contract to be secured; and

                     (c)  the life company has in place a risk management statement that sets out:

                              (i)  policies for the use of derivatives that include an analysis of the risks associated with the use of derivatives within the investment strategy of the company; and

                             (ii)  controls on the use of derivatives that take into consideration the expertise of staff; and

                            (iii)  compliance processes to ensure that the controls are effective (for example, reporting procedures, internal and external audits and staff management procedures); and

                     (d)  the investment to which the charge relates is made in accordance with the risk management statement.

             (2)  In this regulation:

approved body means a body mentioned in Schedule 7.

derivative means a financial asset or liability the value of which depends on, or is derived from, other assets, liabilities or indices.

derivatives contract means an options contract or a futures contract relating to any right, liability or thing.

4.00B  Charges over the assets of approved benefit funds (Act s 38(3)(c))

             (1)  This regulation applies to a friendly society whose approved benefit fund rules provide that the society may apply the assets of an approved benefit fund, or mortgage or charge those assets.

             (2)  The friendly society may apply the assets of an approved benefit fund, or mortgage or charge those assets, if the application, mortgage or charge is made for the advantage of the approved benefit fund, in accordance with the approved benefit fund rules.

             (3)  Subregulation (2) does not apply to a charge over, or in relation to, an asset of an approved benefit fund that satisfies the requirements of subregulation 4.00A(1).

4.01A  Prohibited investments

                   For the purposes of paragraph 43(3)(d) of the Act, an investment of assets of a statutory fund of a life company in a subsidiary of that life company is prohibited if:

                     (a)  the assets of the company that are invested in that subsidiary exceed twice the sum of:

                              (i)  if the company is not an eligible foreign life insurance company:

                                        (A)  the assets of the statutory fund that are invested in the subsidiary; and

                                        (B)  the assets of any other statutory funds of the company that are invested in the subsidiary; or

                             (ii)  if the company is an eligible foreign life insurance company:

                                        (A)  the assets of the statutory fund that are invested in the subsidiary; and

                                        (B)  the assets of any other fund, approved by APRA, invested in the subsidiary; or

                     (b)  the assets of the statutory fund that are invested in that subsidiary are re‑invested, whether directly or indirectly, through 1 or more interposed bodies corporate, trusts or partnerships, with a company that is related to the company (other than as a subsidiary).

Part 9Transfers and amalgamations of life insurance business

  

9.01  Copy of scheme for transfer etc. to be given to APRA

                   For the purposes of paragraph 191(2)(a) of the Act, a copy of:

                     (a)  the scheme; and

                     (b)  each actuarial report on which the scheme is based;

must be given to APRA before a notice of intention to apply to the Court for confirmation of the scheme is published in accordance with regulation 9.02.

9.02  Notice of intention to apply for confirmation of scheme

             (1)  For the purposes of paragraph 191(2)(b) of the Act, an applicant to the Court for confirmation of a scheme must publish a notice of intention to make the application, in a form approved by APRA:

                     (a)  in the Gazette; and

                     (b)  in one or more newspapers, approved by APRA, circulating in each State and Territory in which there is a register of life policies that includes the relevant policy of an affected policy owner.

             (2)  A notice under subregulation (1) must:

                     (a)  state that an affected policy owner may get a copy of the scheme from the place, within the times, and for the period, set out in subregulation (4); and

                     (b)  give the address of each place at which a copy of the scheme may be obtained.

             (3)  The notice must be published before the scheme is released for public inspection under subregulation (4).

             (4)  A copy of the scheme must be open for public inspection from 9.00 a.m. until 5.00 p.m. every day (except weekends and public holidays), for a period of at least 15 days, at:

                     (a)  an office of the applicant; or

                     (b)  another location approved, in writing, by APRA;

in each State and Territory in which there is a register of life policies that includes the relevant policy of an affected policy owner:

Note 1:       A life company must have a register of life policies for each State and Territory in which it carries on life insurance business: subsection 226 (1) of the Act.

Note 2:       An affected policy owner is the owner of a policy that is referable to a statutory fund affected by a scheme: subsection 191 (1) of the Act.

9.03  Application for confirmation of scheme

             (1)  For the purposes of subsection 193(2) of the Act, an application to the Court for confirmation of a scheme may be made no earlier than whichever is the later of:

                     (a)  the day after the day on which the period referred to in subregulation 9.02(4) ends; or

                     (b)  unless the Court dispenses with the need for compliance with paragraph 191(2)(c) of the Act—15 days after the approved summary of the scheme has been given to every affected policy owner under that paragraph.

Note:          The Court may dispense with the need to comply with paragraph 191(2)(c) of the Act in relation to a particular scheme if it is satisfied that, because of the nature of the scheme or the circumstances attending its preparation, it is not necessary that the paragraph be complied with: subsection 191(5) of the Act.

9.04  Documents to be lodged with APRA

             (1)  For the purposes of subsection 197(1) of the Act, a company to which life insurance business is transferred, or with whose life insurance business any part of the business of another company is amalgamated must give APRA the following documents:

                     (a)  a statement of the nature and terms of the transfer or amalgamation;

                     (b)  a certified copy of each of the following documents:

                              (i)  the scheme providing for the transfer or amalgamation;

                             (ii)  an actuarial report, or other report, on which the scheme, and the agreement or deed, are founded;

                            (iii)  the agreement or deed under which the transfer or amalgamation is effected;

                            (iv)  the Court order confirming the scheme;

                             (v)  a statement of the assets and liabilities of each company associated with the transfer or amalgamation;

                     (c)  a statutory declaration by the principal executive officer:

                              (i)  setting out, in relation to the transfer or amalgamation:

                                        (A)  each payment made; and

                                        (B)  a reasonable estimate of each payment to be made; and

                             (ii)  stating that he or she reasonably believes that no other payment has been made, or will be made, by, or with the knowledge of, a party to the transfer or amalgamation.

             (2)  For the purposes of subsection 197(2) of the Act, and subject to subregulation (3), the documents must be lodged within 30 days after the transfer or amalgamation is completed.

             (3)  A company may apply, in writing, to APRA, before the end of the period referred in subregulation (2), for an extension of the time in which to lodge the documents.

             (4)  If APRA believes that the company cannot reasonably provide the documents within the period referred to in subregulation (2), APRA must, within 14 days of receiving an application:

                     (a)  give an extension, of no longer than 30 days, to the company, to provide the documents; and

                     (b)  so inform the company in writing.

Part 10Provisions relating to policies

  

10.01  Assignment of life policy—prescribed form

                   For the purposes of paragraph 200(2)(a) of the Act, Form 2 in Schedule 4 is prescribed as the form of memorandum of transfer for the purpose of assigning rights under a life policy (other than a policy that is issued by a friendly society).

10.02  Notice of change of trustee of life policy

                   For the purposes of subsection 203(2) of the Act, a notice that a person is the trustee of a life policy must be in the form of a statutory declaration.

10.04  Division 4 of Part 10 of the Act to apply to certain life policies with modifications (Act, s 206(3))

                   Division 4 of Part 10 of the Act (relating to surrender values, paid‑up policies and non‑forfeiture of policies) applies to a class of life policies specified in an item in Schedule 2 subject to the modifications specified in that item.

10.05  Interest on overdue premiums—prescribed terms

                   For the purposes of subsection 210(3) of the Act, the least favourable terms on which interest may be charged on overdue premiums is the interest rate worked out by the following formula:

                  

where:

XYB is the mean, rounded to the lower 0.25%, of the 10 year Treasury Bond yields (as shown in figures supplied by the Reserve Bank of Australia) at the end of each of the 6 successive half financial years ended before the date of calculation.

10.05A  Unclaimed money—statements

             (1)  For the purposes of this regulation:

                     (a)  a statement that contains 50 or more items must be recorded on computer disk; and

                     (b)  a statement that contains less than 50 items must be recorded either in writing or on computer disk.

             (2)  A statement under subsection 216(1) of the Act of unclaimed money as at the end of a calendar year:

                     (a)  if it is in writing—must be in accordance with Form 3 in Schedule 4; or

                     (b)  if it is recorded on computer disk—must contain particulars of the number and total value of unclaimed policies and particulars, for each policy for which money is unclaimed, of:

                              (i)  the policy number; and

                             (ii)  the full name of the life or lives insured; and

                            (iii)  the last known address of the life or lives insured; and

                            (iv)  the full name of the policy owner; and

                             (v)  the last known address of the policy owner; and

                            (vi)  the amount due to the policy owner; and

                           (vii)  the date the amount became due; and

                          (viii)  the State or Territory for which the policy is registered.

             (3)  A statement under subsection 216(4) of the Act of money paid between the end of the calendar year and the date on which the statement is given to ASIC:

                     (a)  if it is in writing—must be in accordance with Form 4 in Schedule 4; or

                     (b)  if it is recorded on computer disk—must contain particulars of the number and total value of policies claimed and particulars, for each policy for which money has been paid, of:

                              (i)  the policy number; and

                             (ii)  the full name of the claimant; and

                            (iii)  the date of the claim; and

                            (iv)  the date the claim was paid; and

                             (v)  the amount paid.

             (4)  A statement recorded on computer disk must be accompanied by a lodgment form in accordance with Form 5 in Schedule 4.

             (5)  A life company must notify ASIC in writing if there is no unclaimed money.

10.05AA  Unclaimed money—interest payable

             (1)  This regulation sets out how to work out the interest for paragraph 216(7A)(a) of the Act.

             (2)  If the unclaimed money is paid to the Commonwealth in more than one payment, the interest is to be worked out separately for each payment.

             (3)  The interest is to be worked out for the period (the interest period) that:

                     (a)  starts on the later of:

                              (i)  1 July 2013; and

                             (ii)  the day when the unclaimed money was paid to the Commonwealth; and

                     (b)  ends on the 14th day after the Treasurer last authorised the unclaimed money to be paid under subsection 216(7) of the Act.

             (4)  The interest is to be worked out by adding together the interest for each financial year during the interest period.

             (5)  The interest for each financial year is worked out using the following formula, and rounding the result to the nearest cent:

                  

                   where:

amount means the amount of unclaimed money plus the interest (if any) worked out for each earlier financial year for which interest is payable.

days interest payable means the number of days in the financial year for which interest is payable.

days in the financial year means the number of days in the financial year.

interest rate, for a financial year, means:

                     (a)  the percentage change in the All Groups CPI between the 2 March quarters most recently published before the first day of the financial year (rounded up to 4 decimal places); or

                     (b)  if that percentage change is less than 0%—0%.

10.05B  Public notice of unclaimed moneys

                   ASIC may publish, in any form, information contained in a statement given to ASIC for the purposes of section 216 of the Act, by including any or all of the particulars given in the statement in relation to the unclaimed moneys.

10.06  Calculation of net claim value of policy

             (1)  For the purposes of subsection 223(2) of the Act, the net claim value of a policy:

                     (a)  that has matured; or

                     (b)  under which the life insured has died;

is the amount payable in respect of the claim on the happening of the contingency, less the amount of any debt owed to the relevant life company under, or secured by, the policy, at that time.

             (2)  For the purposes of that subsection, the net claim value of a policy, other than a policy described in subregulation (1), at a particular time, is the amount payable in respect of the claim as if the policy had voluntarily been terminated at that time, less the amount of any debt owed to the relevant life company under, or secured by, the policy, at that time.

Part 11Miscellaneous

  

11.01  Fee for inspection or copying of documents

             (1)  For the purposes of subsection 243(2) of the Act, a fee of $10 is prescribed as the fee to inspect a financial statement or an annual statistical return given to APRA under subsection 118(2) of the Act.

             (2)  Subject to subregulation (3), for the purposes of that subsection, a fee of $1 a page is prescribed as the fee for copying the whole, or part of, a document referred to in subregulation (1).

             (3)  In relation to a particular request to copy documents of a company in respect of a financial year, if the fee payable under subregulation (2) would exceed $60, the maximum fee payable for that copying is $60.

Part 13Dictionary

  

13.02  Definition of superannuation policy—dictionary

                   For the purposes of paragraph (b) of the definition of superannuation policy in the Schedule to the Act, a life policy included in any of the following kinds of policies is declared to be a superannuation policy for the purposes of the Act:

                     (a)  a policy of any of the following kinds that is maintained for the purposes of superannuation or retirement:

                              (i)  an immediate annuity policy;

                             (ii)  a deferred annuity policy;

                            (iii)  an allocated annuity policy;

                     (b)  a policy that is owned by the trustee of a scheme, being a scheme that is:

                              (i)  an approved deposit fund; or

                             (ii)  a pooled superannuation trust;

                     (c)  an RSA (within the meaning of the Retirement Savings Accounts Act 1997).


Schedule 2Modification of Division 4 of Part 10 of the Act (Surrender values, paid‑up policies and non‑forfeiture of policies)

(regulation 10.04)

  

 

Item

Class of life policy

Description of policy within the class

Modification of application of Division 4 of Part 10 of the Act

1

Increased ordinary

An ordinary policy under which the contract of insurance (the original contract) is varied at the request of the policy owner, by increasing:

(a) both the amount of the sum insured and the amount of each premium; or

(b) if additional amounts of premium are paid—the amount of the sum insured.

Section 210 of the Act is taken to apply to an increase of the original contract as if the increase were a policy:

(a) that was effected on the date of the increase; and

(b) under which the sum insured is the amount of the increase; and

(c) under which the period for which premiums have been paid started on the date of the increase.

2

Industrial

A policy that, immediately before the commencement of the Act, was an industrial policy within the meaning of subsection 4 (1) of the Life Insurance Act 1945 and that is treated as ordinary business under the Act.

Despite section 210 of the Act, section 101 of the Life Insurance Act 1945, as in force immediately before the commencement of the Act, continues to apply to policies to which that section applied at that time.


Schedule 4Forms

Form 2Memorandum of transfer for assigning rights under a life policy

(regulation 10.01)

Life Insurance Act 1995

 

Date of transfer

Signature of transferor

Signature of transferor’s witness

Full name of transferee

Address of transferee

Occupation
of transferee

Signature
of transferee

Signature
of witness of transferee

Date of transfer of registration by the life company

Signature of principal executive (or authorised person) of the life company

 


Form 3Statement of unclaimed money

(paragraph 10.05A(2)(a))

Life Insurance Act 1995

Year ended:

Company:

Contact officer:

Telephone:

 

Policy number

Life insured: surname, given names, address

Policy owner: surname, given names, address

Amount due

Date amount became due

State where policy registered

 

 

Signed:                                                 Dated:

(Principal Executive Officer of the life company or a person authorised by the Principal Executive Officer)

Form 4Statement of money paid after the end of the calendar year

(paragraph 10.05A(3)(a))

Life Insurance Act 1995

Year ended:

Company:

Contact officer:

Telephone:

 

Policy number

Claimant: surname, given names

Date claimed

Date paid

Amount paid

 

 

Signed:                                                              Dated:

(Principal Executive Officer of the life company or a person authorised by the Principal Executive Officer)


Form 5Unclaimed money disk lodgment form

(subregulation 10.05A(4))

Life Insurance Act 1995

Unclaimed money for year ended:

Company:

Return address:

Contact officer:

Telephone:

Number of disks:

Creation date:

Original or replacement:

 

 

Number

Value

Unclaimed policies at the end of the year:

Policies claimed since the end of the year:

Certification:    The information contained on the accompanying disks is that required by section 216 of the Life Insurance Act 1995 as the statement of unclaimed money, and money paid after the end of the calendar year.

Signed:                                                            Dated:

(Principal Executive Officer of the life company or a person authorised by the Principal Executive Officer)

Schedule 5Modifications of the Act in relation to friendly societies

(regulation 2A.01)

  

1          Section 15

omit

2          Paragraph 30(f)

substitute

                      (f)  surpluses in an approved benefit fund may only be distributed in accordance with section 56.

3          Subsection 35(1)

omit

4          Subsection 35(2)

omit

A policy document

insert

Approved benefit fund rules

5          Subsections 35(3), (4) and (5)

omit

6          Paragraph 36(b)

omit

7          Paragraph 38(2)(c)

omit

Division 6

insert

Division 5

8          Subsection 38(7)

omit

or 6.

insert

or 5.

9          Subsection 45(1)

omit

or 6.

insert

or 5.

10       Part 4, Divisions 5 and 6

substitute

Division 5   Distribution of surplus in approved benefit fund

56             Distribution of surplus

             (1)  If the appointed actuary of a friendly society advises the society, in writing, that there is a surplus in an approved benefit fund of the society, the society may, if the rules of the approved benefit fund so provide, do 1 or more of the following:

                     (a)  pay, apply or allocate all or part of the surplus to the members of the approved benefit fund;

                     (b)  transfer all or part of the surplus to another approved benefit fund of the society;

                     (c)  transfer all or part of the surplus to the management fund of the society.

             (2)  If the surplus includes an asset other than money, the value of the asset is the fair value of the asset determined in accordance with subsection 45(3).

             (3)  A distribution under subsection (1) must comply with any applicable prudential standard.

14       Sections 75 and 76

substitute

75        Financial records—friendly societies

                   A friendly society must keep such records of the income and outgoings of the management fund and each approved benefit fund of the society as will record properly the affairs and transactions of the society in respect of each fund.

15       Section 81

omit

If a life company

insert

             (1)  If a friendly society

16       Section 81

insert

             (2)  However, unless Prudential Rules, prudential standards or reporting standards otherwise require, subsection (1) does not apply to the treatment of an asset of the management fund of the friendly society.

17       Paragraph 82(5)(c)

substitute

                     (c)  be given to APRA:

                              (i)  for financial statements prepared for subsection (1)—within the period required by subsection 118(3); and

                             (ii)  in any other case—within 3 months after the time as at which they are prepared.

22       Subsection 134(4)

substitute

             (4)  A direction to a friendly society ceases to have effect if:

                     (a)  an order is made for the winding‑up of the society; or

                     (b)  a special resolution is passed for the voluntary winding‑up of the society under subsection 180(2), and APRA:

                              (i)  is notified of the special resolution; and

                             (ii)  gives written permission to the society for the direction to cease to have effect.

23       Subsection 150(9)

substitute

             (9)  A direction to a friendly society ceases to have effect if:

                     (a)  an order is made for the winding‑up of the society; or

                     (b)  a special resolution is passed for the voluntary winding‑up of the society under subsection 180(2), and APRA:

                              (i)  is notified of the special resolution; and

                             (ii)  gives written permission to the society for the direction to cease to have effect.

24       Subsection 198(1)

omit

or policy document

25       Paragraph 201(1)(b)

omit

or endorsed on the policy

26       Subsection 213(2)

omit everything after paragraph (b), insert

                   the company may register the applicant as the owner of the policy, provided that the approved benefit fund rules allow for registration in the circumstances mentioned in paragraph 213 (1)(a) and that the requirements of the rules are followed.

27       Subsection 213(3)

omit

The company may endorse the policy

insert

However, the company may register the applicant

28       Part 10, Division 7

omit

29       Subsection 226(1)

substitute

             (1)  A friendly society must keep a register of members for each approved benefit fund of the society.

          (1A)  The register must include:

                     (a)  the name and address of each member of the approved benefit fund; and

                     (b)  the date of each member’s admission to membership; and

                     (c)  for each membership terminated—the date and circumstances of the termination.

          (1B)  The register must be kept in parts so that the information for a member living in a particular State or Territory is kept in a part of the register for that State or Territory.

          (1C)  A society that, immediately before the transfer date, did not keep its register in parts as described in subsection (1B) must comply with that subsection:

                     (a)  within 18 months starting on the transfer date; or

                     (b)  a longer period that APRA, in writing, allows.

30       Section 227

omit

31       Subsection 229(2)

omit

32       Section 242

omit

34       Schedule—Dictionary, after definition of life policy

insert

management fund, for a friendly society, means the fund of the society that consists of the assets and liabilities of the society that do not form part of an approved benefit fund of the society.

35       Schedule—Dictionary, after definition of spouse

insert

SSA has the meaning given by item 1 of Schedule 8 to the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.

36       Schedule—Dictionary, after definition of trade union

insert

transfer date has the meaning given by the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999.

Schedule 7Approved bodies

(subregulation 4.00A(2), definition of approved body)

 

Item

Body

1

ASX Clear Pty Limited

2

ASX Limited

5

ASX Clear (Futures) Pty Limited

6

Australian Securities Exchange Limited

7

American Stock Exchange Inc

8

The Amsterdam Stock Exchange

9

Belgium Futures and Options Exchange (BELFOX)

10

Board of Trade of the City of Chicago (CBOT)

11

Board of Trade of Kansas City, Missouri, Inc. (KCBT)

12

Bolsa de Derivados do Porto (The Portuguese Futures and Options Exchange) (BDP)

13

Bolsa de Mercadorias & Futuros (Commodities & Futures Exchange, Brazil) (BM & F)

14

Cantor Financial Futures Exchange (CFFE)

15

Chicago Mercantile Exchange (CME)

16

Coffee, Sugar and Cocoa Exchange, Inc. (CSCE)

17

Commodity Exchange Inc. (COMEX)

18

Copenhagen Stock Exchange (including FUTOP Clearing Centre (FUTOP))

19

Eurex Deutschland

20

Eurex Zurich

21

European Options Exchange (EOE)

22

Financial Futures Exchange Barcelona (MEFF‑RF)

23

Financial Futures Exchange Madrid (MEFF‑RV)

24

Financiele Termijnmarkt Amsterdam N.V. (Financial Futures Market Amsterdam) (FTA)

25

Frankfurt Stock Exchange

26

Helsinki Securities and Derivatives Exchange, Clearing House Limited

27

Hong Kong Futures Exchange Ltd (HKFE)

28

The International Petroleum Exchange of London Ltd. (IPE)

29

The International Stock Exchange of the United Kingdom and the Republic of Ireland Limited

30

Italian Futures Exchange (MIF)

31

Italian Stock Exchange

32

Korea Futures Exchange (KOFEX)

33

Korea Stock Exchange (KSE)

34

Kuala Lumpur Commodity Exchange (KLCE)

35

Kuala Lumpur Options and Financial Futures Exchange (KLOFFE)

36

The London International Financial Futures Exchange Ltd. (LIFFE)

37

The London Securities and Derivatives Exchange Limited (OMLX)

38

Malaysia Monetary Exchange (MME)

39

Marché à Terme International de France (The French International Futures Market) (MATIF)

40

Marché des Options Négociables de Paris (Paris Traded Options Market) (MONEP)

41

Mercados de Futuros Financieros, SA (Spanish Financial Futures Market) (MEFFSA)

42

The Metal Market and Exchange Company Ltd. (London Metal Exchange) (LME)

43

Mid America Commodity Exchange (MIDAM)

44

Milan Stock Exchange

45

Minneapolis Grain Exchange (MGE)

46

The Montreal Exchange (ME)

47

NASDAQ National Market

48

New York Cotton Exchange (NCE)

49

New York Futures Exchange, Inc. (NYFE)

50

New York Mercantile Exchange (NYMEX)

51

New York Stock Exchange Inc

52

New Zealand Futures & Options Exchange Ltd. (NZFOE)

53

New Zealand Stock Exchange

54

OM Stockholm AB(OMS)

55

Osaka Securities Exchange (OSE)

56

Oslo Stock Exchange (OSLO)

57

Paris Bourse

58

Philadelphia Stock Exchange (PHLX)

59

Philadelphia Board of Trade (PBOT)

60

Singapore Commodity Exchange Limited (SICOM)

61

Singapore Exchange (SGX)

62

South African Futures Exchange (SAFEX)

63

The Stock Exchange of Hong Kong Limited

64

Tokyo Commodity Exchange for Industry (TOCOM)

65

Tokyo Grain Exchange (TGE)

66

Tokyo International Futures Exchange (TIFFE)

67

Tokyo Stock Exchange (TSE)

68

The Toronto Futures Exchange (TFE)

69

Toronto Stock Exchange

70

The Winnipeg Commodity Exchange (WCE)

71

Wiener Börse AG

72

Zurich Stock Exchange

73

A body that performs clearing house functions in relation to a body mentioned in items 5 to 59 (the second body) in accordance with the rules of the second body or a law of the country where the second body is situated

 


Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnotes about misdescribed amendments and other matters are included in a compilation only as necessary.

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the amendment is set out in the endnotes.

Endnote 2—Abbreviation key

 

A = Act

orig = original

ad = added or inserted

par = paragraph(s)/subparagraph(s)

am = amended

    /sub‑subparagraph(s)

amdt = amendment

pres = present

c = clause(s)

prev = previous

C[x] = Compilation No. x

(prev…) = previously

Ch = Chapter(s)

Pt = Part(s)

def = definition(s)

r = regulation(s)/rule(s)

Dict = Dictionary

Reg = Regulation/Regulations

disallowed = disallowed by Parliament

reloc = relocated

Div = Division(s)

renum = renumbered

exp = expires/expired or ceases/ceased to have

rep = repealed

    effect

rs = repealed and substituted

F = Federal Register of Legislative Instruments

s = section(s)/subsection(s)

gaz = gazette

Sch = Schedule(s)

LI = Legislative Instrument

Sdiv = Subdivision(s)

LIA = Legislative Instruments Act 2003

SLI = Select Legislative Instrument

(md) = misdescribed amendment

SR = Statutory Rules

mod = modified/modification

Sub‑Ch = Sub‑Chapter(s)

No. = Number(s)

SubPt = Subpart(s)

o = order(s)

underlining = whole or part not

Ord = Ordinance

    commenced or to be commenced

 

Endnote 3—Legislation history

 

Number and year

FRLI registration or gazettal

Commencement

Application, saving and transitional provisions

141, 1995

15 June 1995

1 July 1995

 

317, 1995

26 Oct 1995

26 Oct 1995

431, 1995

22 Dec 1995

1 Jan 1996

89, 1996

5 June 1996

5 June 1996

305, 1996

18 Dec 1996

18 Dec 1996

100, 1997

7 May 1997

7 May 1997

119, 1997

29 May 1997

2 June 1997 (r 1 and Gazette 1997, No S202)

239, 1997

10 Sept 1997

10 Sept 1997

191, 1998

30 June 1998

r 9 and 20: 30 June 1998
Remainder: 1 July 1998

146, 1999

30 June 1999

1 July 1999 (r 2 and Gazette 1999, No S293)

19, 2002

21 Feb 2002

11 Mar 2002 (r 2 and Gazette 2001, No GN42)

148, 2002

27 June 2002

30 June 2002

317, 2004

11 Nov 2004

1 Jan 2005 (r 2)

342, 2007

8 Oct 2007 (
F2007L03937)

r 1–3 and Sch 1: 24 Sept 2007 (r 2(a))
Schedule 2: 1 Jan 2008

24, 2010

26 Feb 2010 (F2010L00391)

r 1–3 and Sch 1: 27 Feb 2010 (r. 2(a))
Sch 2: 26 Aug 2010

48, 2011

8 Apr 2011 (F2011L00588)

9 Apr 2011

193, 2011

21 Oct 2011 (F2011L02103)

31 Oct 2011

311, 2012

11 Dec 2012 (F2012L02401)

1 Mar 2013 (s 2(1)) and F2013L00297)

117, 2013

17 June 2013 (F2013L01010)

Sch 1 (items 7, 8): 18 June 2013

171, 2014

3 Nov 2014 (F2014L01468)

Sch 1 (items 6–8, 18): 12 Dec 2014 (s 2 items 2, 4)
Sch 1 (item 13): 15 Jan 2015 (s 2 item 3 and C2015G00020)

218, 2015

27 Nov 2015 (F2015L01859)

Sch 2: 20 Dec 2015 (s 2(1) item 3)

226, 2015

16 Dec 2015 (F2015L02022)

Sch 1 (items 3–9): 17 Dec 2015 (s 2(1) item 1)

 

Endnote 4—Amendment history

 

Provision affected

How affected

Part 1

 

r 1.01................................

rs No 146, 1999

r 1.03................................

rs No 146, 1999

 

am No 117, 2013; No 218, 2015

Part 2A

 

Part 2A.............................

ad No146, 1999

r 2A.01.............................

ad No 146, 1999

 

rs No 226, 2015

r 2A.02.............................

ad No 146, 1999

 

rep No 342, 2007

r 2A.03.............................

ad No 146, 1999

 

rep No 342, 2007

Part 2B

 

Part 2B..............................

ad No 317, 2004

r 2B.01.............................

ad No 317, 2004

 

rs No 311, 2012

 

am No 171, 2014; No 218, 2015

Part 3................................

rep No 342, 2007

r 3.01................................

rep No 342, 2007

r 3.02................................

am No 191, 1998

 

rep No 342, 2007

Part 4

 

r 4.00................................

ad No 317, 1995

 

am No 146, 1999

r 4.00A.............................

ad No 191, 1998

 

am No 19, 2002

r. 4.00B............................

ad No 146, 1999

r 4.01................................

am No 342, 2007

 

rep No 48, 2011

r 4.01A.............................

ad No 431, 1995

 

am No 317, 2004

r 4.01B.............................

ad No 305, 1996

 

am No 100, 1997; No 191, 1998

 

rep No 342, 2007

r 4.02................................

ad No 317, 1995

 

rep No 146, 1999

Part 6................................

rep No 342, 2007

Part 9

 

r 9.01................................

am No 191, 1998; No 146, 1999; No 226, 2015

r 9.02................................

am No 191, 1998; No 146, 1999; No 226, 2015

r 9.04................................

am No 191, 1998

Part 10

 

r 10.01..............................

am No 146, 1999

r 10.03..............................

rep No 191, 1998

 

ad No 146, 1999

 

rep No 148, 2002

r 10.05A...........................

ad No 317, 1995

 

am No 191, 1998

r 10.05AA........................

ad No 117, 2013

r 10.05B...........................

ad No 305, 1996

 

am No 191, 1998

Part 11

 

r 11.00..............................

ad No 317, 1995

 

am No 191, 1998; No 317, 2004

 

rep No 24, 2010

r 11.01..............................

am No 191, 1998

r 11.02–11.04...................

rs No 239, 1997

 

rep No 191, 1998

Part 12..............................

rep No 342, 2007

r 12.01..............................

rep No 342, 2007

Part 13

 

r 13.01..............................

am No 191, 1998

 

rep No 146, 1999

r 13.02..............................

am No 119, 1997; No 191, 1998

Schedule 1........................

am No 191, 1998; No 146, 1999; No 317, 2004

 

rep No 342, 2007

Schedule 2

 

Schedule 2........................

am No 89, 1996; No 191, 1998: No 342, 2007

 

rs No 24, 2010

Schedule 3........................

am No 191, 1998; No 146, 1999

 

rep No 342, 2007

Schedule 4

 

Form 1..............................

rep No 342, 2007

Form 3..............................

ad No 317, 1995

Form 4..............................

ad No 317, 1995

Form 5..............................

ad No 317, 1995

Schedule 5

 

Schedule 5........................

ad No 146, 1999

 

am No 342, 2007; No 24, 2010; No 226, 2015

Schedule 6........................

ad No 146, 1999

 

am No 342, 2007

 

rep No 226, 2015

Schedule 7

 

Schedule 7........................

ad No 19, 2002

 

am No 193, 2011