We have sent all participating Whole of Life and Endowment policyholders (Policyholders) letters providing updates on a proposed policy restructure Foundation Life (NZ) Limited (Foundation Life) is considering in respect of its participating Whole of Life and Endowment policies.
As mentioned in prior update letters, a comprehensive information pack will be presented to Policyholders before they are asked to vote on the proposed policy restructure. As advised in the April 2020 update letter this is now expected to be later in 2020, once the volatility in financial markets caused by COVID-19 has settled, the proposal is finalised, the Appointed Actuary and Independent Actuary have completed their final reviews, all approvals have been achieved and the first High Court hearing has been held. It will also be necessary for COVID-19 restrictions to reduce to enable policyholders to communicate more freely and attend the Scheme meeting.
The proposed policy restructure would be an arrangement between Foundation Life and its Policyholders under Part 15 of the Companies Act 1993 (Scheme). Foundation Life would need to obtain initial orders from the High Court that the arrangements to send out the relevant information in relation to the Scheme and to hold the Scheme meeting are appropriate before the Scheme proposal can be presented to Policyholders for consideration, and their vote. Foundation Life has appointed an independent actuary to assess the Scheme before it is presented to Policyholders. The Scheme would need to be approved by Policyholders and the process would need to be approved by the High Court before it binds Foundation Life and the Policyholders. Once approved, the Scheme would bind all Policyholders, including those who voted against the Scheme or did not vote at all.