Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The distribution of retained profits of a statutory fund must be in accordance with the following rules:
(a) Australian policy owners' retained profits may only be distributed to owners of Australian policies that provide for participating benefits;
(b) subject to paragraph (c), overseas policy owners' retained profits may only be distributed to owners of overseas policies that provide for participating benefits;
(c) overseas policy owners' retained profits may be distributed to owners of Australian policies that provide for participating benefits or transferred to shareholders' funds if the distribution or transfer has been approved by APRA;
(d) shareholders' retained profits (Australian participating) and shareholders' retained profits (overseas and non - participating) may be:
(i) transferred to shareholders' funds; or
(ii) transferred to another statutory fund of the company; or
(iii) distributed to owners of policies that provide for participating benefits.
(2) A distribution of retained profits of a statutory fund may only be made after the directors of the company have received the appointed actuary's written advice as to the likely consequences of the proposed distribution.
(3) A distribution of retained profits of a statutory fund must not be made if:
(a) the distribution would have the result that the prudential standards in relation to solvency would not be satisfied in relation to the fund; or
(b) the distribution would involve a contravention of a direction given by APRA under section 230B in relation to solvency; or
(c) in the case of a distribution of shareholders' retained profits (Australian participating), the distribution would involve a contravention of prudential standards made for the purposes of subsection (5).
(4) Except with the approval of APRA, a distribution of shareholders' retained profits (Australian participating) or shareholders' retained profits (overseas and non - participating) must not be made if:
(a) the distribution would have the result that the prudential standards in relation to capital adequacy would not be satisfied in relation to the fund; or
(b) the distribution would involve a contravention of a direction given by APRA under section 230B in relation to capital adequacy.
(5) The prudential standards may prohibit the distribution of
shareholders' retained profits (Australian participating) unless the
distribution is in accordance with specified requirements relating to the
distribution of Australian policy owners' retained profits.