Document ID: chunk:federal_register_of_legislation:F2023L01348:front:0:p6
Version: federal_register_of_legislation:F2023L01348
Segment Type: other
Provision Reference: 
Character Range: 13984–17081

variable remuneration is equal to or greater than 1 million AUD in a financial year of the entity;
(h)          in-period adjustment – means an adjustment made to variable remuneration during the period set for measuring the performance under a variable remuneration arrangement;
(i)            independent director – means a director defined as independent in Prudential Standard CPS 510 Governance and in subsection 10(1) of the SIS Act;
(j)            malus – means an adjustment to reduce the value of all or part of deferred variable remuneration before it has vested;
(k)          material risk-taker – means a person whose activities have a material potential impact on the entity's risk profile, performance and long-term soundness, and in addition for an RSE licensee, means a person whose activities have a material potential impact on performing its duties and exercising its powers in the best financial interests of beneficiaries;
(l)            misconduct – means an action or inaction by a person covered by an entity's remuneration policy that does not meet applicable:
(i)            legal and prudential obligations;
(ii)         requirements or standards of a recognised professional body; or
(iii)       policies and procedures covering conduct and ethical standards set by the entity;
(m)        non-executive director – has the meaning given in Prudential Standard CPS 510 Governance and for an RSE licensee, Prudential Standard SPS 510 Governance;
(n)          non-financial measures – means measures that are not financial measures;
(o)          non-significant financial institution (non-SFI) – means, in relation to RSE licensees, an RSE licensee that is not an SFI;[8]
(p)          relevant oversight function – means for foreign ADIs and Category C insurers, the senior officer outside Australia, and for EFLICs, the Compliance Committee;
(q)          remuneration arrangement – means an arrangement that includes measures of performance, the mix of forms of remuneration (such as fixed and variable components, and cash and equity-related benefits) and the timing of eligibility to receive payments. All forms of remuneration are captured by this Prudential Standard, regardless of where, or from whom, the remuneration is sourced;
(r)           remuneration framework – means the totality of systems, structures, policies, processes and people within an entity that identify, measure, evaluate, monitor, report and control or mitigate all internal and external sources of risks relating to remuneration;
(s)           risk and financial control personnel – means persons whose primary role is in risk management, compliance, internal audit, financial control or actuarial control;
(t)            senior manager –
(i)            in relation to ADIs, has the meaning given in the Banking Act;
(ii)         in relation to general insurers, has the meaning given in the Insurance Act;
(iii)       in relation to life insurers, has the meaning given in the Life Insurance Act;
(iv)        in relation to private health insurers, means any person specified in paragraph (c)