Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p19
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 49764–52925

provided those hedges are effective.
    [PHI] material risks are those risks that could have a material impact, both financial and non-financial on the APRA-regulated institution, or on the interests of depositors and/or policy holders of the APRA-regulated institution. Material risks may include, but are not limited to, the examples included in Prudential Standard CPS 220 Risk Management.
    [LI] minimum paid-up value is as defined in Prudential Standard LPS 360 Termination Values, Minimum Surrender Values and Paid-up Values.
    [LI] minimum surrender value is as defined in Prudential Standard LPS 360 Termination Values, Minimum Surrender Values and Paid-up Values.
    [LI] minimum termination value is as defined in Prudential Standard LPS 360 Termination Values, Minimum Surrender Values and Paid-up Values.
    [ADI] model approval refers to the written approval from APRA to an ADI to adopt an internal model approach to a particular risk.
    [ADI] net credit balance has the meaning in section 5 of the Banking Act.
    [LI] net life contract liabilities equals the sum of the insurance, reinsurance and investment contract liabilities (net of insurance and reinsurance assets) disclosed in the statutory accounts determined under Australian Accounting Standards.
    [ADI] netting refers to the process under a netting agreement of combining all relevant outstanding transactions between two counterparties and reducing them to a single net sum for a party to either pay or receive.
    [GI, PHI] non-APRA-authorised reinsurer means any reinsurer that is not an APRA-authorised reinsurer.
    [ADI] non-consolidated subsidiaries is as defined in Attachment A to this Prudential Standard.
    [ADI] non-operating holding company (NOHC) has the meaning in section 5 of the Banking Act.
    [GI] non-operating holding company (NOHC) has the meaning in the Insurance Act.
    [LI] non-operating holding company (NOHC) has the meaning in the Life Insurance Act.
    [PHI] non-operating holding company (NOHC) has the meaning in the Insurance Act.
    [LI] non-participating benefit has the meaning given in section 15 of the Life Insurance Act.
    [GI, PHI] non-reinsurance recoveries are recoveries determined under Prudential Standard CPS 320 Actuarial and Related Matters that do not relate to exposures to a reinsurer.
    [ADI] non-significant financial institution (non-SFI) means an ADI or authorised NOHC that is not a significant financial institution.
    [GI] non-significant financial institution (non-SFI) means an insurer, authorised NOHC or parent entity of a Level 2 insurance group that is not a significant financial institution.
    [LI] non-significant financial institution (non-SFI) means a life company or registered NOHC that is not a significant financial institution.
    [PHI] non-significant financial institution (non-SFI) means a private health insurer that is not a significant financial institution.
    [ADI] offshoring means the outsourcing by an ADI of a material business activity associated with its Australian business to a service provider (including a related body corporate) where the outsourced activity