Document ID: chunk:federal_register_of_legislation:F2023L01348:front:0:p2
Version: federal_register_of_legislation:F2023L01348
Segment Type: other
Provision Reference: 
Character Range: 2885–6221

GPS 001 Definitions.

private health insurer has the meaning given in section 4 of the Private Health Insurance (Prudential Supervision) Act 2015.

registered NOHC has the meaning given in the Schedule to the Life Insurance Act 1995.

RSE licensee has the meaning given in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.

subsidiary has the meaning given in Prudential Standard GPS 001 Definitions.

the prudential standard means Prudential Standard CPS 511 Remuneration in the form set out in the Schedule.

Schedule
Prudential Standard CPS 511 Remuneration comprises the document commencing on the following page.

Prudential Standard CPS 511

Remuneration
Objectives and key requirements of this Prudential Standard
The objective of this Prudential Standard is to ensure that APRA-regulated entities maintain remuneration arrangements which appropriately incentivise individuals to prudently manage the risks they are responsible for, and that there are appropriate consequences for poor risk outcomes.
The key requirements of this Prudential Standard are that:
     * the Board of an APRA-regulated entity is responsible for the remuneration framework and its effective application, consistent with the size, business mix and complexity of the entity;
     * an entity must maintain a remuneration framework that promotes effective management of financial and non-financial risks;
     * remuneration outcomes must be commensurate with performance and risk outcomes;
     * higher standards must be met for key roles and certain large, complex entities; and

     * an APRA-regulated entity must make clear, comprehensive, meaningful, consistent and comparable public disclosures on remuneration.

Table of Contents
Authority
Application
Interpretation
Adjustments and exclusions
Previous exercise of discretion
Definitions
A. Requirements for SFIs
Remuneration framework
Role of the Board
Board Remuneration Committee
Remuneration design
Deferral
Remuneration outcomes
Specified roles
Review of the remuneration framework
Other requirements
Disclosures
B. Requirements for Non-SFIs
Remuneration framework
Role of the Board
Remuneration design
Remuneration outcomes
Specified roles
Other requirements
Disclosures

Authority
     1. This Prudential Standard is made under:
(a)          section 11AF of the Banking Act 1959 (Banking Act);
(b)          section 32 of the Insurance Act 1973 (Insurance Act);
(c)          section 230A of the Life Insurance Act 1995 (Life Insurance Act);
(d)          section 92 of the Private Health Insurance (Prudential Supervision) Act 2015 (PHIPS Act); and
(e)          section 34C of the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Application
2.             Subject to paragraphs 3 and 4, and in accordance with paragraphs 9 to 11, this Prudential Standard applies to all APRA-regulated entities, defined as:
(a)          authorised deposit taking institutions (ADIs), including foreign ADIs, and non-operating holding companies authorised under the Banking Act (authorised banking NOHCs) but excluding purchased payment facility providers;
(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)