Document ID: chunk:federal_register_of_legislation:F2023L01384:body:0:p4
Version: federal_register_of_legislation:F2023L01384
Segment Type: other
Provision Reference: 
Character Range: 8643–11851

Standard; and
(f)           significant financial institution (SFI) – means, in relation to RSE licensees, an RSE licensee that either:
(i)            has total assets in excess of AUD $30 billion in the case of a single RSE operated by an RSE licensee, or if the RSE licensee operates more than one RSE, where the combined total assets of all RSEs exceed this amount; or
(ii)         is determined as such by APRA, having regard to matters such as complexity in its operations or its membership of a group.[6]

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

Resolution planning
13.         APRA may determine a bespoke resolution plan for an APRA-regulated entity or APRA-regulated entities, setting out the steps that APRA may take to protect beneficiaries and maintain critical functions in the event of a resolution. Resolution options may include a wind-down, transfer, or recapitalisation of an entity.
14.         An APRA-regulated entity must support APRA in the development and maintenance of a resolution plan.
15.         An APRA-regulated entity with overseas operations must support the development and maintenance of cross-border components of the resolution plan.

Role of the Board
16.         The Board of an APRA-regulated entity must support APRA in resolution planning and is ultimately responsible for ensuring that the entity meets the requirements of this Prudential Standard. The Board must ensure that there are clear roles and responsibilities at a senior executive level for the purpose of meeting the requirements in this Prudential Standard.
17.         The Board must provide oversight of and approve, where applicable:
(a)          a resolvability assessment; and
(b)          a pre-positioning plan.

Critical functions
18.         An APRA-regulated entity must support APRA in the determination of whether it provides any critical functions, if required by APRA.
19.         APRA may require an APRA-regulated entity to undertake critical functions analysis, taking into account the systemic impact, customer impact and the substitutability by other providers if functions were to cease. An APRA-regulated entity may also be required to identify shared services, including those provided by third parties, upon which critical functions depend.

Resolvability assessment
20.         APRA may require an APRA-regulated entity to conduct a resolvability assessment to assess the feasibility of resolution options. The resolvability assessment must be conducted by personnel with appropriate skills and experience.
21.         For each resolution option, the resolvability assessment must assess:
(a)          any legal, structural, operational or regulatory barriers to implementation;
(b)          timelines for implementation;
(c)          any execution risks; and
(d)          pre-positioning measures required to effectively execute the option.
22.         APRA may require an APRA-regulated entity to have the resolvability assessment independently reviewed.

Pre-positioning plan
23.         APRA may require an APRA-regulated entity to develop and implement a