Document ID: chunk:federal_register_of_legislation:F2019L00669:body:0:p13
Version: federal_register_of_legislation:F2019L00669
Segment Type: other
Provision Reference: 
Character Range: 34623–36880

for requirements relating to the risk management of an RSE licensee.
[2]   Where a Level 2 group operates within a Level 3 group, a requirement expressed as applying to a Head of a group is to be read as applying to the Level 3 Head.
[3] A reference to the Board in the case of a foreign ADI, is a reference to the senior officer outside Australia.
[4] This paragraph does not override any requirements applying to an RSE licensee in SPS 220.
[5] For life companies and private health insurers, this includes a view of the material risks at the level of individual statutory or health benefit funds respectively.
[6] Refer to Prudential Standard APS 110 Capital Adequacy, Prudential Standard GPS 110 Capital Adequacy and Prudential Standard LPS 110 Capital Adequacy. A Level 3 Head is not required to have a group ICAAP.  For private health insurers, ICAAP refers to the Capital Management Policy requirements contained in Prudential Standard HPS 110 Capital Adequacy.
[7] 'Prudential requirements' include requirements under the respective Banking Act, the Insurance Act, the Life Insurance Act, the PHIPS Act, the Banking Regulations 1966, the Life Insurance Regulations 1995, the Insurance Regulations 2002, APRA Private Health Insurance Rules, prudential standards, reporting standards, the Financial Sector (Collection of Data) Act 2001, licence conditions, authorisations, directions and any other requirements imposed by APRA under legislation.
[8] Outsourcing any part of the risk management function by an APRA-regulated institution must also meet the requirements in Prudential Standard CPS 231 Outsourcing or Prudential Standard HPS 231 Outsourcing.
[9] For insurers, the review must take into account the Appointed Actuary's annual Financial Condition Report assessments required under Prudential Standard CPS 320 Actuarial and Related Matters.
[10] Where relevant, any qualification of a risk management declaration must identify where the material deviation has occurred and whether it was on a Level 1/individual APRA-regulated institution basis and/or group basis.
[11] Refer to subsection 11AF(2) of the Banking Act, subsection 32(3D) of the Insurance Act, subsection 230A(4) of the Life Insurance Act and subsection 92(4) of the PHIPS Act.