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Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Bill 2007

Schedule 1 Amendments commencing on Royal Assent

   

Financial Sector (Collection of Data) Act 2001

1  Subsection 3(1)

After “to assist it in the prudential regulation”, insert “or monitoring”.

2  Paragraph 3(2)(b)

After “that it regulates”, insert “or monitors”.

3  At the end of subsection 5(2)

Add:

               ; or (d)  a discretionary mutual fund.

4  At the end of section 5

Add:

             (5)  A discretionary mutual fund is a fund (however constituted) for making payments on the happening of a specified event (where there is uncertainty as to whether, or when, the event will happen), that is a fund:

                     (a)  to which 2 or more persons contribute, and:

                              (i)  out of which payments may be made in respect of liabilities, losses, damages or expenses of the contributors; and

                             (ii)  that is governed by rules under which any such payment for the benefit of a contributor is subject to a discretion of a person or body; or

                     (b)  that is declared to be a discretionary mutual fund, or included in a class of funds that are declared to be discretionary mutual funds, by regulations made for the purposes of this paragraph.

             (6)  However, a fund (however constituted) is not a discretionary mutual fund if:

                     (a)  a contributor has a right, in law or equity, to a payment of a kind referred to in subparagraph (5)(a)(i); or

                     (b)  the fund is:

                              (i)  declared not to be a discretionary mutual fund; or

                             (ii)  included in a class of funds that are declared not to be discretionary mutual funds;

                            by regulations made for the purposes of this paragraph.

5  At the end of Part 1

Add:

6A   Application of Act

                   This Act does not apply, in relation to a discretionary mutual fund, to State insurance not extending beyond the limits of the State concerned.

6  Section 31

Insert:

discretionary mutual fund has the meaning given by subsections 5(5) and (6).