Document ID: chunk:federal_register_of_legislation:F2019L00648:body:0:p2
Version: federal_register_of_legislation:F2019L00648
Segment Type: other
Provision Reference: 
Character Range: 2717–5976

all general insurers authorised under the Act (insurers).

3.             Paragraphs 11 to 23 apply to all insurers other than Category C insurers. Paragraphs 25 to 36 apply only to Category C insurers. The remaining paragraphs apply to all insurers.

4.             This Prudential Standard applies to insurers from 1 July 2019.

5.             Subsection 116A(1) of the Act deems certain reinsurance assets to be assets in Australia. Subsection 116A(5) of the Act deems certain amounts owed by a person outside Australia to be assets in Australia. In the event of any inconsistency between section 116A of the Act and a provision of this Prudential Standard, section 116A of the Act prevails.

   Interpretation

6.             Terms that are defined in Prudential Standard GPS 001 Definitions (GPS 001) appear in bold the first time they are used in this Prudential Standard.

7.             In this Prudential Standard:

       (a)          'Austraclear' means the Central Securities Depository service operated by Austraclear Ltd ACN 002 060 773;

       (b)          'Australian depository' means Austraclear and CHESS and any similar facility in Australia for the holding and trading of securities (whether debt or equity);

       (c)          'CHESS' means the service of that name operated by CHESS Depositary Nominees Pty Limited ACN 071 346 506;

       (d)          'Clearstream' means the International Securities Depository Service of Clearstream International S.A., a company domiciled in Luxembourg;

       (e)          'custodian' means a body corporate that holds property for another person under a contractual arrangement, but excludes a sub-custodian or depository;

       (f)           'depository' means an Australian depository or a foreign depository;

       (g)          'Euroclear' means the International Central Securities Depository service of Euroclear Bank SA/NV, a company located in Belgium;

       (h)          'external custody agreement' means any custody arrangement entered into by an insurer that covers assets being held on behalf of the insurer by a party other than the insurer. This includes both intra-group and fully external custody arrangements;

       (i)            'foreign depository' means Euroclear, Clearstream and any similar facility outside Australia for the holding and trading of securities (whether debt or equity);

       (j)            interest in a Special Purpose Vehicle[2] (SPV) means:

           (i)            where the SPV is a company, a share or similar interest; and

           (ii)         where the SPV is a unit trust, a unit or similar interest;

       (k)          'kangaroo bond' means a debt security issued for the purposes of the Australian market where the issuer does not reside in Australia;

       (l)            'locally incorporated insurer' means an insurer that is incorporated in Australia or in a state or territory of Australia, by or under a Commonwealth, state or territory law. Category A insurers, Category B insurers, Category D insurers and Category E insurers are locally incorporated insurers;

       (m)        'managed investment scheme' has the same meaning as in the Corporations Act 2001 (Corporations Act);

       (n)