Document ID: chunk:federal_register_of_legislation:F2023L01535:body:0:p5
Version: federal_register_of_legislation:F2023L01535
Segment Type: other
Provision Reference: 
Character Range: 11295–14242

company (including an EFLIC);
       (d)          'responsible auditor' as defined in GPS 001, in relation to an authorised insurance NOHC and in relation to a registered 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' as defined in Prudential Standard 3PS 310 Audit and Related Matters (3PS 310), in relation to a Level 3 Head; and
       (f)           'Appointed Auditor' as defined in Prudential Standard HPS 310 Audit and Related Matters (HPS 310), in relation to a private health insurer.
10.         This Prudential Standard sets out the minimum requirements that an APRA-regulated institution and the Head of a group must meet in the interests of promoting strong and effective governance.

Additional requirements of the Head of a group
11.         The Head of a group must maintain governance arrangements for the group.
12.         In meeting the requirements of this Prudential Standard on a group basis, the Head of a group must maintain a group internal audit function that meets the requirements of paragraphs 68 and 69 on a group basis.
13.         The Board of the Head of a group is ultimately responsible for oversight of the sound and prudent management of the group and must have the following committees for the group:
       (a)          a group Board Audit Committee that meets the requirements of paragraphs 52 to 67 and that assists the Board by providing an objective non-executive review of the effectiveness of the group's financial reporting and group risk management framework; and
       (b)          a group Board Risk Committee that meets the requirements of paragraphs 80 to 87 and that assists the Board by providing an objective non-executive oversight of the implementation and operation of the group risk management framework.
14.         The Board of a Head of a group must ensure that directors and senior management of the group, collectively, have the full range of skills needed for the effective oversight and prudent management, respectively, of the group. This does not lessen the responsibility of each of the individual Boards of the institutions within the group for their institutions.
15.         Where an entity within the group that is not an APRA-regulated institution engages in business activities that may pose a material risk to the group, the Head of the group must ensure that such business activities are undertaken in a way that complies with the group governance arrangements.[3]

   A.      Governance arrangements – locally incorporated APRA-regulated institutions

The Board and senior management
16.         The Board of directors (the Board) of a locally-incorporated APRA-regulated institution is ultimately responsible for oversight of the sound and