Document ID: chunk:federal_register_of_legislation:F2018L01390:body:0:p5
Version: federal_register_of_legislation:F2018L01390
Segment Type: other
Provision Reference: 
Character Range: 11164–14166

(including an EFLIC);
       (d)          'responsible auditor' has the meaning given in GPS 001, in relation to an authorised insurance NOHC, and, in relation to a registered life NOHC, is an auditor who is required to prepare a report under the Life Insurance Act, prudential standards made under the Life Insurance Act or reporting standards made under the Financial Sector (Collection of Data) Act 2001 (FSCODA);
       (e)          'Appointed Auditor' has the meaning given in Prudential Standard 3PS 310 Audit and Related Matters, in relation to a Level 3 Head; and
       (f)           'Appointed Auditor' has the meaning given in Prudential Standard HPS 310 Audit and Related Matters in relation to a private health insurer.
10.         In this Prudential Standard, the term 'Prudential Acts' is used to refer to the Banking Act, the Insurance Act and the Life Insurance Act.
11.         This Prudential Standard specifies:
       (a)          the senior management responsibilities for the purposes of the definition of senior manager in the Prudential Acts[3] and the definition of officer in the PHIPS Act;
       (b)          the fitness and propriety criteria for auditors and Appointed Actuaries for the purposes of the Prudential Acts[4] and the PHIPS Act;
       (c)          the fitness and propriety criteria for certain responsible persons for the purposes of the Prudential Acts[5] and the PHIPS Act; and
       (d)          the fitness and propriety criteria for the purposes of paragraph 21(3)(b) of the Banking Act.

Fit and Proper Policy
12.         An APRA-regulated institution must prudently manage the risks that persons acting in responsible person positions[6] who are not fit and proper pose to the institution's business and financial standing. To this end, an APRA-regulated institution must maintain a documented policy relating to the fitness and propriety of the institution's responsible persons that meets the requirements of this Prudential Standard (Fit and Proper Policy).
13.         The Fit and Proper Policy must be approved by the Board.[7]
14.         An APRA-regulated institution must take all reasonable steps to ensure that each responsible person is aware of, and understands, the provisions of its Fit and Proper Policy.
15.         The Fit and Proper Policy must form part of an institution's risk management framework.[8]
16.         Nothing in this Prudential Standard prevents an APRA-regulated institution from adopting and applying a group Fit and Proper Policy used by a related body corporate[9], provided that the policy has been approved by the Board in accordance with paragraph 13 and meets the requirements of this Prudential Standard.

Additional requirements of the Head of a group
17.         The Head of a group must maintain a group Fit and Proper Policy (refer to paragraphs 12 to 16).
18.         Where an entity within the group that is not an APRA-regulated institution engages in business activities that may materially affect,