Document ID: chunk:federal_register_of_legislation:F2023L01242:body:0:p3
Version: federal_register_of_legislation:F2023L01242
Segment Type: other
Provision Reference: 
Character Range: 5917–9143

(b)          general insurers, including Category C insurers, non-operating holding companies authorised under the Insurance Act (authorised insurance NOHCs) and parent entities of Level 2 insurance groups;
       (c)          life companies, including friendly societies, eligible foreign life insurance companies (EFLICs) and registered NOHCs;
       (d)          private health insurers registered under the PHIPS Act; and
       (e)          registrable superannuation entity licensees (RSE licensees) under the SIS Act in respect of their business operations.[1]
3.             The obligations imposed by this Prudential Standard on, or in relation to, a foreign ADI, a Category C insurer and an EFLIC apply only in relation to the Australian branch operations of that entity.
4.             Where an APRA-regulated entity is the Head of a group,[2] it must comply with a requirement of this Prudential Standard:
       (a)          in its capacity as an APRA-regulated entity;
       (b)          by ensuring that the requirement is applied appropriately throughout the group,[3] including in relation to entities that are not APRA-regulated; and
       (c)          on a group basis.
5.             In applying the requirements of this Prudential Standard on a group basis, references to an APRA-regulated entity are to be read as 'Head of a group' and references to entity are to be read as 'group'.
6.             This Prudential Standard commences on 1 July 2025.
7.             Where an APRA-regulated entity has pre-existing contractual arrangements in place with a service provider, the requirements in this Prudential Standard will apply in relation to those arrangements from the earlier of the next renewal date of the contract with the service provider or 1 July 2026.

Interpretation
8.             Terms that are defined in Prudential Standard APS 001 Definitions, Prudential Standard GPS 001 Definitions, Prudential Standard LPS 001 Definitions, Prudential Standard HPS 001 Definitions or Prudential Standard 3PS 001 Definitions appear in bold the first time they are used in this Prudential Standard.
9.             In this Prudential Standard, unless the contrary intention appears, a reference to an Act, Regulation or Prudential Standard is a reference to the Act, Regulation or Prudential Standard as in force from time to time.
10.         Where this Prudential Standard provides for APRA to exercise a power or discretion, the power or discretion is to be exercised in writing.

Adjustments and exclusions
11.         APRA may adjust or exclude a specific prudential requirement in this Prudential Standard in relation to an APRA-regulated entity.[4]

Key principles
12.         An APRA-regulated entity must:
       (a)          effectively manage its operational risks, and set and maintain appropriate standards for conduct and compliance;
       (b)          maintain its critical operations within tolerance levels through severe disruptions; and
       (c)          manage the risks associated with the use of service providers.
13.         An APRA-regulated entity must identify, assess and manage operational risks that may result from inadequate or failed internal processes or systems, the