Regulatory AlertsLPS 700 Friendly Society Benefit Funds
The Australian Prudential Regulation Authority issued Prudential Standard LPS 700 to require all friendly societies to operate approved benefit funds in a fair and equitable manner for their members. The standard mandates specific operational requirements, including the classification of funds as defined contribution or defined benefit, strict rules for surplus allocation, and rigorous reconciliation processes for joint investments and single bank accounts. Additionally, it establishes comprehensive procedures for the approval and amendment of benefit fund rules and the restructuring or termination of funds, ensuring member notification and APRA oversight throughout these processes.
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