Document ID: chunk:federal_register_of_legislation:F2019L00648:body:0:p11
Version: federal_register_of_legislation:F2019L00648
Segment Type: other
Provision Reference: 
Character Range: 27234–30105

required to maintain assets in Australia, which exceed their liabilities in Australia (adjusted for any surplus or deficit of technical provisions relative to those required by Prudential Standard GPS 340 Insurance Liability Valuation) by an amount that is greater than their PCR.

36.         An asset will not be counted as an asset in Australia for the purposes of paragraph 35 if this Prudential Standard excludes it from being an asset in Australia for the purposes of paragraph 28(a) of the Act, or it is not otherwise an asset in Australia within the meaning of paragraph 28(a) of the Act.

Provisions applying to all insurers

Other cases of foreign assets held through intermediate entities

37.         Where:

       (a)          but for this paragraph, an asset would be treated as an asset in Australia of an insurer;

       (b)          that asset relates to an interest (underlying interest) that is held through one or more interposed entities (including, without limitation, trusts or companies, or a combination thereof); and

       (c)          the underlying interest would not be an asset in Australia (either because it would be excluded under another provision of this Prudential Standard or because it would not otherwise be an asset in Australia within the meaning of paragraph 28(a) of the Act) if the underlying interest were held directly by the insurer (or, in the case of a Category C insurer, if held directly by the Category C insurer's custodian or agent in Australia)

then APRA may, having regard to the risk that the proceeds of the underlying interest may not be available in a winding up of the insurer in Australia, determine, in writing, that the amount is excluded from being an asset in Australia.

Adjustments and exclusions

38.         APRA may, by notice in writing to an insurer, adjust or exclude a specific requirement in this Prudential Standard in relation to that insurer.

Determinations made under previous prudential standards

39.         An exercise of APRA's discretion under a previous version of this Prudential Standard continues to have effect. For the purposes of this paragraph, 'a previous version of this Prudential Standard' means assets in Australia prudential standards made on or subsequent to 25 September 2006.

   [1]  The effect of this Prudential Standard is to exclude certain amounts, which might otherwise be treated as assets in Australia under the common law, from being counted as assets in Australia for the purposes of section 28 of the Act.  This Prudential Standard does not, however, contain an exhaustive list of the circumstances in which assets will be excluded from being assets in Australia. In particular, the common law may exclude certain assets from being assets in Australia.
    [2]  Special Purpose Vehicle is defined in paragraph 7(o).
   [3]  APRA has