Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe principal requirements of this Part in relation to statutory funds may be summarised as follows:
(a) all amounts received by a life company in respect of the business of a fund must be credited to the fund;
(b) all assets and investments related to the business of a fund must be included in the fund;
(c) all liabilities (including policy liabilities) of the company arising out of the conduct of the business of a fund must be treated as liabilities of the fund;
(d) the assets of a fund are only available for expenditure related to the conduct of the business of the fund;
(e) statutory funds may not be restructured or terminated without the approval of APRA;
(f) profits and losses of a statutory fund may only be dealt
with in accordance with Divisions 5 and 6 (the object of those
Divisions being to ensure that such profits and losses are dealt with in a
manner that protects the interests of policy owners and is consistent with
prudent management of the fund).