Document ID: chunk:federal_register_of_legislation:F2022L01572:body:0:p2
Version: federal_register_of_legislation:F2022L01572
Segment Type: other
Provision Reference: 
Character Range: 2844–5721

1 basis; and

       (b)          a group of which an ADI is a member on a Level 2 basis.

   4.            In the case of a foreign ADI, a reference to an ADI in this Prudential Standard shall be taken to refer to the foreign ADI's Australian operations as if it was a stand-alone ADI.
   5.            Where an ADI to which this Prudential Standard applies is a subsidiary of an authorised non-operating holding company (authorised NOHC), the authorised NOHC must ensure that the requirements in this Prudential Standard are met on a Level 2 basis. This includes ensuring that any immediate parent non-operating holding company (NOHC) of the ADI, its Board of directors (Board) and senior management meet the requirements in this Prudential Standard.
   6.            A reference to an intermediate holding company in this Prudential Standard means the immediate parent NOHC of an ADI. When applying this Prudential Standard on a Level 2 basis, a reference to an ADI will, where relevant, be taken to refer to an intermediate holding company or authorised NOHC at the head of a Level 2 group. Similarly, in a Level 2 context, references to the auditor, internal auditor, chief executive officer (CEO) or equivalent and other senior management, the Board and Board Audit Committee of an ADI must be taken to refer to equivalent persons of the intermediate holding company or authorised NOHC, as appropriate.
   7.            In the case of a foreign ADI, a reference to the Board or a Board Committee in this Prudential Standard will be taken to refer to the senior officer outside Australia to whom authority has been delegated in accordance with Prudential Standard CPS 510 Governance (CPS 510). For a foreign ADI, a reference to the CEO refers to the senior manager in Australia with overall responsibility for the conduct of the foreign ADI's Australian operations.
   8.            This Prudential Standard commences on 1 January 2023.

Interpretation

   9.            Terms that are defined in Prudential Standard APS 001 Definitions (APS 001) appear in bold the first time they are used in this Prudential Standard.
   10.        Where this Prudential Standard provides for APRA to exercise a power or discretion, the power or discretion is to be exercised in writing.
   11.        In this Prudential Standard, unless the contrary intention appears, a reference to an Act, Regulations, Prudential Standard or Reporting Standard is a reference to the Act, Regulations, Prudential Standard or Reporting Standard as in force from time to time[1].

Scope

   12.        This Prudential Standard applies to all operations and activities of an ADI.

Adjustments and exclusions

   13.        APRA may adjust or exclude a specific prudential requirement in this Prudential Standard in relation to one or more specified ADIs or authorised NOHCs.[2]

Previous exercise of