Document ID: chunk:federal_register_of_legislation:F2023L01384:body:0:p2
Version: federal_register_of_legislation:F2023L01384
Segment Type: other
Provision Reference: 
Character Range: 2826–6117

prudential standard means Prudential Standard CPS 900 Resolution Planning.

Schedule
Prudential Standard CPS 900 Resolution Planning comprises the document commencing on the following page.

Prudential Standard CPS 900

Resolution Planning
Objectives and key requirements of this Prudential Standard
The objective of this Prudential Standard is to ensure that APRA-regulated entities can be resolved by APRA in an orderly manner if needed, where bespoke planning and pre-positioning is required. The aim of resolution is to protect beneficiaries, minimise disruption to the financial system, and provide continuity of critical functions in the event an entity becomes non-viable.
This Prudential Standard requires significant financial institutions (SFIs), and non-SFIs that provide critical functions, to support resolution planning when notified by APRA.
The key requirements of this Prudential Standard are for an APRA-regulated entity to:
    * conduct a resolvability assessment to identify any barriers to resolution;
    * develop and implement a pre-positioning plan to remove any barriers to resolution;
    * establish and maintain the capabilities to support APRA in effecting a resolution; and

    * review and update the resolvability assessment at least every three years.

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 and commencement
2.             Subject to paragraphs 3 and 4, 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);
(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 and eligible foreign life insurance companies (EFLICs), and registered NOHCs;
(d)          private health insurers; and
(e)          RSE licensees 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 or an EFLIC apply only in relation to the Australian branch operations of that entity.
4.             For the purposes of this Prudential Standard, an APRA-regulated entity is either a significant financial institution (SFI) or a non-significant financial institution (non-SFI). This Prudential Standard applies to SFIs, and non-SFIs determined by APRA to provide critical functions.
5.             Where an APRA-regulated entity is the Head of a group,[2], [3] it must comply with an applicable requirement of this Prudential Standard:
(a)          in its capacity as an APRA-regulated entity;
(b)          by