(1) The Minister may, in writing, determine standards (the prudential standards ) for this Act relating to prudential matters that must be complied with by an approved scheme.
Note Power given under an Act to make a statutory instrument includes power to make different provision for different categories, eg different kinds of schemes (see Legislation Act, s 48).
(2) The prudential standards may—
(a) require approval of the trustees of the approved scheme; and
(b) make provision in relation to—
(i) the capital adequacy of the scheme; and
(ii) the valuation of liabilities; and
(iii) the effectiveness of risk management strategies and techniques; and
(iv) requiring the giving of information to the commissioner for fair trading, or any other entity prescribed under the prudential standards, about decisions by the trustees to pay or refuse to pay claims.
Note An Act that authorises the making of a statutory instrument (eg prudential standards) also authorises an instrument to be made with respect to any matter required or permitted to be prescribed under the authorising law or that is necessary or convenient to be prescribed for carrying out or giving effect to the authorising law (see Legislation Act, s 44).
(3) The prudential standards may—
(a) provide for the exercise of discretions under the standards, including discretions to approve, impose, adjust or exclude particular prudential requirements in relation of an approved scheme; and
(b) apply, adopt or incorporate a law or instrument, or a provision of a law or instrument, as in force from time to time.
Note 1 The text of an applied, adopted or incorporated law or instrument, whether applied as in force from time to time or as at a particular time, is taken to be a notifiable instrument if the operation of the Legislation Act, s 47 (5) or (6) is not disapplied (see s 47 (7)).
Note 2 A notifiable instrument must be notified under the Legislation Act.
(4) A determination under this section is a disallowable instrument.
Note A disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act.
(5) In this section:
"prudential matters", for an approved scheme, means matters relating to the conduct by the trustees of the scheme of any of the scheme's affairs—
(a) in a way that keeps the scheme's affairs in a sound financial position; and
(b) with integrity, prudence and professional skill.