Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In this section, listed corporation has the same meaning as in the Corporations Act 2001 .
(2) The general rule regarding investment of assets of a statutory fund is that a life company may invest such assets in any way that is likely to further the business of the fund.
(3) The general rule stated in subsection (2) is subject to the following qualifications:
(a) nothing in this Act authorises a life company to make an investment the company would otherwise be prohibited from making;
(b) nothing in this Act authorises a life company to make an investment the company would not otherwise have power to make;
(c) except with the approval of APRA, a life company must not invest assets of a statutory fund in a company that is related to the life company but is not a subsidiary of the life company;
(ca) a life company must not contravene subsection 43A(1) or (4);
(d) a life company must not invest assets of a statutory fund, or keep such assets invested, in a subsidiary of the life company if the investment, or the retention of the investment, as the case requires, is prohibited by the regulations.
(4) Nothing in paragraph (3)(c), (ca) or (d) prevents a life company investing assets of a statutory fund, or keeping such assets invested, in ordinary voting shares of listed corporations related to the life company (whether or not they are subsidiaries) if the total value of the assets of the fund so invested does not exceed 2.5% of the total value of all assets of the fund.
(5) A transaction is not ineffective merely because it involves a contravention of paragraph (3)(c) , (ca) or (d).
(6) Nothing in this section:
(a) prevents a life company from investing money of a statutory fund by way of deposit with a bank; or
(b) requires the approval of APRA for such an investment.
(7) For the purposes of this Part, an investment by way of a loan is to be taken to be made when the loan agreement is entered into.