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.
A comprehensive information pack will be presented to Policyholders before they are asked to vote on the proposed policy restructure once the proposal is finalised, the Appointed Actuary, Independent Actuary and Reserve Bank of New Zealand have completed their reviews, all approvals have been achieved and the first High Court hearing has been held. However, we continue to experience delays in finalising the details of the Scheme to ensure it delivers the best results for policyholders, shareholders and related parties, predominantly due to the current low interest rate environment and the uncertainty COVID-19 has caused. The information pack will now likely be sent later in 2021. A further update on the Scheme will be included with policyholders’ annual bonus certificates which are scheduled to be distributed from the 26th January 2021.
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.