Document ID: chunk:federal_register_of_legislation:F2023L01348:front:0:p5
Version: federal_register_of_legislation:F2023L01348
Segment Type: other
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Character Range: 11374–14237

be exercised in writing.
17.         For the purposes of this Prudential Standard:
(a)          group – means a Level 2 group, Level 3 group or a group comprising the RSE licensee and all connected entities[5] and all related bodies corporate[6] of the RSE licensee, as relevant;[7]
(b)          Head of a group – means a Level 2 Head or Level 3 Head, as relevant;
(c)          Level 2 group – means the entities that comprise:
(i)            Level 2 as defined in APS 001; or
(ii)         a Level 2 insurance group as defined in GPS 001;
(d)          Level 2 Head – means:
(i)            where an ADI that is a member of a Level 2 group is not a subsidiary of an authorised banking NOHC or another ADI, that ADI;
(ii)         where an ADI that is a member of a Level 2 group is a subsidiary of an authorised banking NOHC, that authorised banking NOHC; or
(iii)       the parent entity of a Level 2 insurance group as defined in GPS 001;

Adjustments and exclusions
18.         APRA may adjust or exclude a specific requirement in this Prudential Standard in relation to an APRA-regulated entity.

Previous exercise of discretion
19.         An APRA-regulated entity must contact APRA if it seeks to place reliance, for the purposes of complying with this Prudential Standard, on a previous exemption or other exercise of discretion by APRA under Prudential Standard CPS 510 Governance or Prudential Standard SPS 510 Governance (SPS 510).

Definitions
20.         The following definitions are used in this Prudential Standard:
(a)          Board – for an RSE licensee, means a reference to the Board of directors or group of individual trustees of an RSE licensee where 'group of individual trustees' has the meaning given in subsection 10(1) of the SIS Act;
(b)          clawback – means the recovery of an amount corresponding to some or all variable remuneration subject to recovery that has been paid or vested to a person;
(c)          conduct risk – means the risk associated with misconduct;
(d)          consequence management – means the approach to managing performance, risk and conduct outcomes, which may include downward adjustments to variable remuneration;
(e)          executive director – means a director that is not a non-executive director;
(f)           financial measures – means measures that are based on revenue, sales, profit, the entity's share price, or other measures that directly affect these;
(g)          highly paid material risk-taker – means a material risk-taker whose total fixed remuneration (which includes salary, superannuation, allowances and benefits) plus actual variable remuneration is equal to or greater than 1 million AUD in a financial year of the entity;
(h)          in-period adjustment – means an adjustment made to variable remuneration during the period set for measuring the performance under a variable