Regulatory AlertsPrudential Standard LPS 600 Statutory Funds
The Australian Prudential Regulation Authority issued Prudential Standard LPS 600 to require life insurers to operate statutory funds fairly and equitably for policy owners. The standard mandates specific operational requirements, including the use of single bank accounts, rules for non-participating benefits, and strict procedures for restructuring funds that necessitate APRA approval and independent actuarial reports. It applies to all life companies other than friendly societies and commenced on 1 July 2023, replacing previous determinations to ensure capital adequacy and policyholder protection during fund transfers.
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