Document ID: chunk:federal_register_of_legislation:F2019L00669:body:0:p3
Version: federal_register_of_legislation:F2019L00669
Segment Type: other
Provision Reference: 
Character Range: 5664–8923

adequately address a material risk.

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); and
       (d)          section 92 of the Private Health Insurance (Prudential Supervision) Act 2015 (PHIPS Act).

Application
2.             This Prudential Standard applies to all 'APRA-regulated institutions'[1] 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 non-operating holding companies registered under the Life Insurance Act (registered life NOHCs); and
       (d)          private health insurers registered under the PHIPS Act.
3.             APRA-regulated institutions must comply with this Prudential Standard in its entirety, unless otherwise expressly indicated. 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 institution.
4.             Where an APRA-regulated institution is the 'Head of a group',[2] it must comply with a requirement of this Prudential Standard:
       (a)          in its capacity as an APRA-regulated institution;
       (b)          by ensuring that the requirement is applied appropriately throughout the group, including in relation to institutions that are not APRA-regulated;  and
       (c)          on a group basis.
In applying the requirements of this Prudential Standard on a group basis, references in paragraphs 9, 19 to 56, and Attachment A to an 'APRA-regulated institution' should be read as 'Head of a group' and references to 'institution' should be read as 'group'.
5.             This Prudential Standard commences on 1 July 2019.

Interpretation
6.             In this Prudential Standard:
       (a)          terms that are defined in Prudential Standard 3PS 001 Definitions, Prudential Standard APS 001 Definitions (APS 001), Prudential Standard GPS 001 Definitions (GPS 001), Prudential Standard LPS 001 Definitions or Prudential Standard HPS 001 Definitions appear in bold the first time they are used; and
       (b)          unless the contrary intention appears, a reference to an Act, Regulations or Prudential Standard is a reference to the Act, Regulations or Prudential Standard as in force from time to time.
7.             Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.
8.             For the purposes of this Prudential Standard:
'group' means a Level 2 group or a Level 3 group, as relevant;
'Head of a group' means a Level 2 Head