Document ID: chunk:federal_register_of_legislation:F2023L00691:front:0:p2
Version: federal_register_of_legislation:F2023L00691
Segment Type: other
Provision Reference: 
Character Range: 2782–5951

under this Prudential Standard; and
     * will facilitate APRA liaison with an Appointed Auditor if required.

Table of Contents
Authority
Application and commencement
Interpretation
Obligations of a private health insurer – Auditor appointment
Obligations of a private health insurer – fitness and propriety
Appointed Auditor's report
Obligations of a private health insurer – Auditor's report
Other responsibilities of the private health insurer
Special purpose engagements
Adjustments and exclusions
Previous exercise of discretion
Attachment A

Authority
     1. This Prudential Standard is made under subsection 92(1) of the Private Health Insurance (Prudential Supervision) Act 2015 (the Act).

Application and commencement
2.             This Prudential Standard applies to all operations and activities of private health insurers registered under the Act.
3.             All private health insurers must comply with this Prudential Standard in its entirety, unless otherwise expressly indicated.
4.             This Prudential Standard applies to private health insurers from 1 July 2023.

Interpretation
5.             Terms that are defined in Prudential Standard HPS 001 Definitions appear in bold the first time they are used in this Prudential Standard.

Obligations of a private health insurer – Auditor appointment
6.             For the purposes of this Prudential Standard, a private health insurer must appoint an auditor (the Appointed Auditor).
7.             A private health insurer must ensure the terms of engagement of the Appointed Auditor are set out in a legally binding contract between the private health insurer and the Appointed Auditor, including requirements that:
(a)          the Appointed Auditor fulfils the roles and responsibilities of the Appointed Auditor as specified in this Prudential Standard and in the manner specified in this Prudential Standard;
(b)          the Appointed Auditor, in meeting its role and responsibilities to comply with the relevant Standards and Guidance issued from time to time by the AUASB (AUASB standards and guidance) to the extent they are not inconsistent with this Prudential Standard. If they are inconsistent:
(i)            this Prudential Standard prevails; or
(ii)         APRA may notify the private health insurer, in writing, that alternative standards and guidance must be used by the Appointed Auditor.
8.             A private health insurer must ensure its Appointed Auditor has access to all relevant data, information, reports and staff of the private health insurer that its Appointed Auditor reasonably believes are necessary to fulfil his or her responsibilities. This will include access to the private health insurer's Board, Board Audit Committee and Internal Auditors, and any information APRA has provided to the private health insurer, as required.
9.             A private health insurer must take all reasonable steps or make necessary arrangements to ensure its Appointed Auditor has access to contractors of the private health insurer that its Appointed Auditor reasonably believes are necessary to fulfil his or her responsibilities.

Obligations of a private