LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 NO. 191 LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 NO. 191 - TABLE OF PROVISIONS 1. Commencement 2. Amendment 3. Regulation 3.02 (Time for giving notice-change of circumstances) 4. New regulation 4.00A 5. Regulation 4.01B (Ascertainment of income and outgoings of statutory funds) 6. Regulation 9.01 (Copy of scheme for transfer etc to be given to APRA) 7. Regulation 9.02 (Notice of intention to apply for confirmation of scheme) 8. Regulation 9.04 (Documents to be lodged with APRA) 9. Regulation 10.03 (Division 4 of Part 10 of the Act not to apply to certain life policies (Act, s 206 (2))) 10. Regulation 10.05A (Unclaimed money-statements) 11. Regulation 10.05B (Public notice of unclaimed moneys) 12. Regulation 11.00 (Form and content of Register of Life Companies) 13. Regulation 11.01 (Fee for inspection or copying of documents) 14. Regulation 11.02 (Financial sector supervisory agencies (Act, s 251)) 15. Regulation 11.03 (Law enforcement agencies (Act, s 251)) 16. Regulation 11.04 (Overseas financial sector supervisory agencies (Act, s 251)) 17. Regulation 13.01 (Definition of eligible assets-dictionary) 18. Regulation 13.02 (Definition of superannuation policy-dictionary) 19. Schedule 1 (Requirements for applications for registration) 20. Schedule 2 (Modification of Division 4 of Part 10 of the Act (Surrender values, paid-up policies and non-forfeiture of policies)) 21. Schedule 3 (Modification of the operation of Divisions 5 and 6 of Part 4 of the Act in relation to existing life companies) LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 1 1. Commencement 1.1 Subject to subregulations 1.2 and 1.3, these regulations commence on 1 July 1998. 1.2 Regulations 9 and 20 commence on 30 June 1998. LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 2 2. Amendment 2.1 The Life Insurance Regulations are amended as set out in these regulations. LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 3 3. Regulation 3.02 (Time for giving notice-change of circumstances) 3.1 Omit "the Commissioner", substitute "APRA". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 4 4. New regulation 4.00A 4.1 After regulation 4.00, insert: Charges over the assets of statutory funds: derivative contracts (Act, s 38 (3) (c)) "4.00A. (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) Australian Stock Exchange Ltd; (b) Options Clearing House Pty Ltd; (c) Sydney Futures Exchange Ltd; (d) Sydney Futures Exchange Clearing House Pty Ltd; (e) a body that is an approved foreign exchange within the meaning of regulation 1.2A.02 of the Corporations Regulations; (f) a body specified in Schedule 11 to those Regulations; (g) a body that performs clearing house functions in relation to a body mentioned in paragraph (e) or (f) (the second body) in accordance with the rules of the second body or a law of the country where the second body is incorporated. 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 option contract or futures contract relating to any right, liability or thing, including in particular: (a) an option contract as defined in section 9 of the Corporations Law; and (b) a futures contract within the meaning of section 72 of that Law; and (c) an agreement to which section 72A or 92A of the Law applies.". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 5 5. Regulation 4.01B (Ascertainment of income and outgoings of statutory funds) 5.1 Omit "Commissioner's rules", substitute "Prudential Rules". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 6 6. Regulation 9.01 (Copy of scheme for transfer etc to be given to APRA) 6.1 Omit "the Commissioner", substitute "APRA". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 7 7. Regulation 9.02 (Notice of intention to apply for confirmation of scheme) 7.1 Subregulation 9.02 (1): Omit "the Commissioner" (wherever occurring), substitute "APRA". 7.2 Paragraph 9.02 (4) (b): Omit "the Commissioner", substitute "APRA". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 8 8. Regulation 9.04 (Documents to be lodged with APRA) 8.1 Subregulations 9.04 (1) and (3): Omit "the Commissioner", substitute "APRA". 8.2 Subregulation 9.04 (4): Omit "the Commissioner" (wherever occurring), substitute "APRA". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 9 9. Regulation 10.03 (Division 4 of Part 10 of the Act not to apply to certain life policies (Act, s 206 (2))) 9.1 Omit the regulation. LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 10 10. Regulation 10.05A (Unclaimed money-statements) 10.1 Subregulations 10.05A (3) and (5): Omit "the Commissioner", substitute "ASIC". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 11 11. Regulation 10.05B (Public notice of unclaimed moneys) 11.1 Omit "The Commissioner", substitute "ASIC". 11.2 Omit "the Commissioner", substitute "ASIC". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 12 12. Regulation 11.00 (Form and content of Register of Life Companies) 12.1 Paragraph 11.00 (b): Omit the paragraph, substitute: "(b) the State or Territory where the company is incorporated and each State or Territory where the company intends to carry on business; and". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 13 13. Regulation 11.01 (Fee for inspection or copying of documents) 13.1 Subregulation 11.01 (1): Omit "the Commissioner", substitute "APRA". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 14 14. Regulation 11.02 (Financial sector supervisory agencies (Act, s 251)) 14.1 Omit the regulation. LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 15 15. Regulation 11.03 (Law enforcement agencies (Act, s 251)) 15.1 Omit the regulation. LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 16 16. Regulation 11.04 (Overseas financial sector supervisory agencies (Act, s 251)) 16.1 Omit the regulation. LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 17 17. Regulation 13.01 (Definition of eligible assets-dictionary) 17.1 Subparagraph 13.01 (2) (b) (i): Omit "a bank", substitute "an ADI". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 18 18. Regulation 13.02 (Definition of superannuation policy-dictionary) 18.1 Omit "classes", substitute "kinds". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 19 19. Schedule 1 (Requirements for applications for registration) 19.1 Part A, paragraph (1) (b): Omit the paragraph, substitute: "(b) the State or Territory where the company is incorporated and each State or Territory where the company intends to carry on business;". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 20 20. Schedule 2 (Modification of Division 4 of Part 10 of the Act (Surrender values, paid-up policies and non-forfeiture of policies)) 20.1 Definition of relevant actuarial standard: Add at the end: "; and (c) in force on 29 June 1998.". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - REG 21 21. Schedule 3 (Modification of the operation of Divisions 5 and 6 of Part 4 of the Act in relation to existing life companies) 21.1 Clause 3 (substituted subsection 58 (2), definitions of balance of the revenue account and net liabilities): Omit "Commissioner's rules", substitute "Prudential Rules". LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - NOTE 1 NOTES *1* Notified in the Commonwealth of Australia Gazette on 30 June 1998. LIFE INSURANCE REGULATIONS (AMENDMENT) 1998 No. 191 - NOTE 2 *2* Statutory Rules 1995 No. 141 as amended by 1995 Nos. 317 and 431; 1996 Nos. 89 and 305; 1997 Nos. 100, 119 and 239. - NOTES LIFE INSURANCE REGULATIONS*2* (AMENDMENT) 1998 No. 191*1* - Dated 30 June 1998.