Treasury Laws Amendment (2023 Law Improvement Package No. 1) Act 2023 (76 of 2023)

Schedule 4   Insurance

Part 3   Friendly societies

Division 1   Main amendments

Life Insurance Act 1995

62   At the end of the Act

Add:

Schedule 2 - Modifications relating to friendly societies

Note: See sections 16KA and 16ZAA.

Part 1 - Modification of Part 4 of this Act

1 Modification of Part 4 of this Act

Part 4 of this Act has effect in relation to a friendly society as if Divisions 5 and 6 of that Part were omitted and the following Division substituted:

Division 6 - 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 one 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 (within the meaning of subsection 45(5)).

Note: For subsection 45(5), see section 16K.

(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 requirements in the prudential standards.

Part 2 - Modification of Part 6 of this Act

2 Sections 75 and 76 of this Act

Part 6 of this Act has effect in relation to a friendly society as if sections 75 and 76 were omitted and the following section substituted:

75 Financial records - friendly societies

A friendly society must keep such records of the income and outgoings of:

(a) the management fund of the society (within the meaning of subsection 45(5)); and

(b) each approved benefit fund of the society;

as will record properly the affairs and transactions of the society in respect of each fund.

Note: For subsection 45(5), see section 16K of this Act.