Federal Register of Legislation
Life Insurance (prudential standard) determination No. 4 of 2023
Prudential Standard LPS 370 Cost of Investment Performance Guarantees
Life Insurance Act 1995
I, Clare Gibney, a delegate of APRA:
(a) under subsection 230A(5) of the Life Insurance Act (the Act) revoke Life Insurance (prudential standard) determination No. 14 of 2012, including Prudential Standard LPS 370 Cost of Investment Performance Guarantees made under that Determination; and
(b) under subsection 230A(1) of the Act, determine Prudential Standard LPS 370 Cost of Investment Performance Guarantees, in the form set out in the Schedule, which applies to all life companies, including friendly societies.
This instrument commences on 29 March 2023.
Dated: 7 March 2023
Clare Gibney Executive Director Policy and Advice Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority. friendly society has the meaning given in section 16C of the Act. life company has the meaning given in the Schedule to the Act.
Schedule
Prudential Standard LPS 370 Cost of Investment Performance Guarantees comprises the document commencing on the following page.
Prudential Standard LPS 370
Cost of Investment Performance Guarantees
Objective and key requirements of this Prudential Standard
This Prudential Standard sets out the requirements for calculating the cost of investment performance guarantees provided in association with investment-linked contracts for the purpose of section 42 of the Life Insurance Act 1995.
The ultimate responsibility for the calculation and compliance with the requirements of the Act in relation to investment performance guarantees lies with the Board of the life company.
The key requirements of this Prudential Standard are that a life company must:
* calculate the cost of any investment performance guarantees associated with its investment-linked business in accordance with this Prudential Standard; and * be able to demonstrate that at all times the cost of any investment performance guarantees represents less than 5 per cent of the total policy liabilities of each statutory fund to which this Prudential Standard applies.
We try to embed the page this law was scraped from. If the site blocks framing, you still get the link and a local excerpt.
Last checked with source on —
Checking whether the official page can be embedded…
Plain-English simplify of this law: a short summary, key points, and both sides of the argument. Generated on first view via Replicate, then cached. Vote on what helps your study.
No study brief is cached for this law yet. Sign up to generate a plain-English brief.
Sign up to generate