Document ID: chunk:federal_register_of_legislation:F2023L01348:reg:17:p3
Version: federal_register_of_legislation:F2023L01348
Segment Type: reg
Provision Reference: reg 17 (pt 3/6)
Character Range: 55198–58311

entity.

Specified roles
87.         The Board, or relevant oversight function, must approve the variable remuneration outcomes for persons in specified roles as follows:
(a)          individually for senior managers and executive directors;[24] and
(b)          on a cohort basis for highly-paid material risk-takers, other material risk-takers and risk and financial control personnel.

Other requirements
88.         In relation to the requirements for a remuneration policy, where an APRA-regulated entity is part of a group, or corporate group in the case of a private health insurer, the Board of the APRA-regulated entity may adopt and apply a group remuneration policy that is also used by a related body corporate or a connected entity provided that the group remuneration policy:
(a)          meets the requirements of this Prudential Standard;
(b)          has been approved by the Board or relevant oversight function; and
(c)          gives appropriate regard to the entity's business activities, its specific requirements and its remuneration framework.
89.         Except in circumstances permitted by law, an APRA-regulated entity must not pay any remuneration (whether directly or indirectly) to, or for the benefit of, a person through vehicles or methods that undermine the effect or intent of the requirements of this Prudential Standard. An APRA-regulated entity must at minimum prevent the following:
(a)          the entity indemnifying or insuring (whether directly or through arrangements with another person) the relevant person against the consequences of:
(i)            breaching an obligation under this Prudential Standard; or
(ii)         applying in-period adjustment, malus or clawback under this Prudential Standard; and
(b)          hedging by any person in a specified role who receives equity or equity-linked deferred variable remuneration, of their economic exposure to the resultant equity price risk before the equity-linked remuneration is fully vested and able to be sold for cash by the recipient. The entity must have a prohibition for such hedging, whether in its remuneration policy, contractual or other documentation, and, define and document the process and actions to be taken where any person in a specified role is in breach of the prohibition.
90.         Paragraph 89 does not apply in respect of a liability for legal costs.

Disclosures
91.         An APRA-regulated entity must make clear, comprehensive, meaningful, consistent and comparable public disclosure of information on its remuneration framework and practices, as set out in this Prudential Standard.
92.         An APRA-regulated entity must publish the disclosures required under this Prudential Standard in a standalone document on its website or, provided the information is clearly identified as disclosures made for the purpose of complying with the requirements of this Prudential Standard, as part of other disclosures made by the entity that are available on its website.
93.         An APRA-regulated entity must make disclosures on a financial year basis for each full financial year