INSURANCE ACT 1973 - SECT 68 Security trust fund arrangements

INSURANCE ACT 1973 - SECT 68

  (1)   APRA may, by legislative instrument, require Lloyd's to ensure that, at all times when the instrument is in force, there are in existence:

  (a)   such security trust fund arrangements; and

  (b)   such ancillary or incidental arrangements;

as are specified in, or ascertained in accordance with, the instrument.

Note:   The required arrangements may be varied--see subsection   33(3) of the Acts Interpretation Act 1901 .

  (2)   An instrument under subsection   (1) may make provision for or in relation to a matter by conferring a power on APRA.

  (3)   An instrument under subsection   (1) may:

  (a)   require a trust deed for a security trust fund to be approved by APRA; and

  (b)   require alterations of a trust deed for a security trust fund to be approved by APRA; and

  (c)   require the trustee of a security trust fund to be approved by APRA.

  (4)   Subsections   (2) and (3) do not, by implication, limit subsection   (1).

  (5)   If:

  (a)   an instrument under subsection   (1) requires a trust deed for a security trust fund to be approved by APRA; and

  (b)   the approval is not obtained;

the failure to obtain the approval does not affect the validity of the establishment or operation of the fund.

  (6)   If:

  (a)   an instrument under subsection   (1) requires an alteration of a trust deed for a security trust fund to be approved by APRA; and

  (b)   the approval is not obtained;

the alteration has no effect.

  (7)   If:

  (a)   an instrument under subsection   (1) requires the trustee of a security trust fund to be approved by APRA; and

  (b)   the approval is not obtained;

the failure to obtain the approval does not affect the validity of the appointment of the trustee.

  (8)   Before making an instrument under subsection   (1), APRA must consult Lloyd's unless APRA is satisfied that the delay that would be involved in consulting Lloyd's would be likely to prejudice the interests of the holders of contracts of insurance covered, or to be covered, by the fund or funds concerned. A failure to comply with this subsection does not affect the validity of the instrument.

  (9)   Section   70 does not, by implication, limit this section.

  (11)   A reference in subsection   (1) to an ancillary or incidental arrangement includes a reference to an arrangement for the funding of a security trust fund.

  (12)   Lloyd's must comply with an instrument in force under subsection   (1).