Document ID: chunk:federal_register_of_legislation:F2016L01436:body:0:p3
Version: federal_register_of_legislation:F2016L01436
Segment Type: other
Provision Reference: 
Character Range: 5629–8677

This Prudential Standard applies to all 'APRA-regulated institutions',[1] defined as:
(a)          all authorised deposit-taking institutions (ADIs), including foreign ADIs, and non-operating holding companies authorised under the Banking Act (authorised banking NOHCs);
(b)          all 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; and
(c)          all life companies, including friendly societies and eligible foreign life insurance companies (EFLICs), and non-operating holding companies registered under the Life Insurance Act (registered life NOHCs.)
3.             All APRA-regulated institutions have to comply with this Prudential Standard in its entirety, unless otherwise expressly indicated. The obligations imposed by this Prudential Standard on, or in relation to, a foreign ADI, a Category C insurer or an EFLIC apply only in relation to the Australian branch operations of that institution.
4.             Where an APRA-regulated institution 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 institution;
(b)          by ensuring that the requirement is applied appropriately throughout the group, including in relation to institutions that are not APRA-regulated; and
(c)          on a group basis.
In applying the requirements of this Prudential Standard on a group basis, references in paragraphs 20 to 46 to an 'APRA-regulated institution' should be read as 'Head of a group' and references to 'institution' should be read as 'group'.
5.             Nothing in this Prudential Standard prevents an APRA-regulated institution from adopting and applying a group policy used by a related body corporate,[3] provided that the policy has been approved by the Board[4] and meets the requirements of this Prudential Standard.
6.             This Prudential Standard commences on 1 July 2017.

Interpretation
7.             Terms that are defined in Prudential Standard 3PS 001 Definitions, Prudential Standard APS 001 Definitions (APS 001), Prudential Standard GPS 001 Definitions (GPS 001) or Prudential Standard LPS 001 Definitions appear in bold the first time they are used in this Prudential Standard.
8.             Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.
9.             For the purposes of this Prudential Standard:
'group' means a Level 2 group or a Level 3 group, as relevant;
'Head of a group' means a Level 2 Head or Level 3 Head, as relevant;
'Level 2 group' means the entities that comprise:
(a)          Level 2 as defined in APS 001; or
(b)          a Level 2 insurance group as defined in GPS 001;
'Level 2 Head' means:
(a)          where an ADI that is a member of a Level 2 group is not a subsidiary of an authorised banking NOHC or another ADI, that ADI;
(b)          where an