Treasury Laws Amendment (2023 Law Improvement Package No. 1) Act 2023 (76 of 2023)
Schedule 4 Insurance
Part 4 Statutory funds of life companies
Life Insurance Act 1995
73 After section 43
Insert:
43A Investment of statutory funds - investment in subsidiaries of life company
No investment in subsidiaries if less than half of investment in subsidiaries is from statutory funds etc.
(1) For the purposes of paragraph 43(3)(ca), a life company contravenes this subsection at all times at which the following is true in relation to a subsidiary of the life company:
where:
funds investment in subsidiary means the total value of the assets of the following funds invested in the subsidiary:
(a) if the life company is not an eligible foreign life insurance company - the statutory funds of the life company;
(b) if the life company is an eligible foreign life insurance company:
(i) the statutory funds of the life company; and
(ii) any other fund approved under subsection (2) in relation to the eligible foreign life company.
Note: For value , see Schedule 1.
total company investment in subsidiary means the total value of the assets of the life company invested in the subsidiary (including the value of any assets of statutory funds of the life company invested in the subsidiary).
(2) For the purposes of subparagraph (b)(ii) of the definition of funds investment in subsidiary in subsection (1), APRA may, in writing, approve a fund in relation to an eligible foreign life insurance company (whether or not the fund is a statutory fund or other fund of the eligible foreign life insurance company).
(3) If APRA approves a fund, or refuses to approve a fund, in relation to an eligible life insurance company under subsection (2), APRA must give the eligible foreign life insurance company written notice of APRA's decision.
No investment in subsidiaries that invest in bodies corporate that are related to life company
(4) For the purposes of paragraph 43(3)(ca), a life company contravenes this subsection at all times at which:
(a) an asset of a statutory fund of the life company is invested in a subsidiary of the life company; and
(b) subsection (5) of this section applies to that subsidiary.
(5) This subsection applies to a subsidiary of the life company if:
(a) both:
(i) any of the assets of the subsidiary are currently invested in a body corporate, trust or partnership; and
(ii) subsection (6) or (7) of this section applies to that body corporate, trust or partnership; or
(b) both:
(i) any of the assets of the subsidiary are currently invested in another subsidiary of the life company; and
(ii) this subsection applies to that other subsidiary.
(6) This subsection applies to a body corporate if:
(a) the body corporate is not a subsidiary of the life company; and
(b) any of the following subparagraphs apply:
(i) the body corporate is related to the life company;
(ii) any of the assets of the body corporate are currently invested in a subsidiary of the life company, and subsection (5) applies to that subsidiary;
(iii) any of the assets of the body corporate are currently invested in another body corporate, and this subsection applies to that other body corporate;
(iv) any of the assets of the body corporate are currently invested in a trust or partnership, and subsection (7) applies to that trust or partnership.
(7) This subsection applies to a trust or partnership if:
(a) both:
(i) any of the assets of the trust or partnership are currently invested in a subsidiary of the life company; and
(ii) subsection (5) applies to that subsidiary; or
(b) both:
(i) any of the assets of the trust or partnership are currently invested in a body corporate; and
(ii) subsection (6) applies to that body corporate; or
(c) both:
(i) any of the assets of the trust or partnership are currently invested in another trust or partnership; and
(ii) this subsection applies to that other trust or partnership.