Prudential standards for approved scheme
54DC Prudential standards for approved scheme
(1) A regulation may prescribe standards (the prudential standards) relating to prudential matters that must be complied with under an approved scheme.
(2) Without limiting subsection (1), the prudential standards may provide for the following matters in relation to an approved scheme:
(a) the continuing eligibility of a person to be a trustee of the scheme;
the capital adequacy of the scheme;
the valuation of liabilities;
the effectiveness of risk management strategies and techniques;
(e) requirements for giving information to a specified person or entity about the trustee's decisions to pay or refuse to pay claims.
A regulation prescribing prudential standards may:
(a) provide for the exercise of discretions under the standards, including discretions to approve, impose, adjust or exclude particular matters in relation to an approved scheme; and
(b) apply, adopt or incorporate (with or without changes) the whole or part of a law in force in the Territory, or the whole or part of a document, as in force or existing at a particular time or from time to time.
In this section:
prudential matters, for an approved scheme, means matters relating to the trustees conducting the scheme's affairs:
(a) in a way that keeps the scheme's affairs in a sound financial position; and
with integrity, prudence and professional skill.
This provision refers to the regulations (A regulation
). Made under this Act:
This Act’s bill:Second reading speech
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