Document ID: chunk:federal_register_of_legislation:F2019L01578:body:0:p7
Version: federal_register_of_legislation:F2019L01578
Segment Type: other
Provision Reference: 
Character Range: 17696–20801

the Financial Sector (Collection of Data) Act 2001.

    34.         If the Board qualifies the risk management declaration, the qualified declaration must include a description of any material deviation from the RSE licensee's risk management framework and the steps taken, or proposed to be taken, to remedy those deviations.

Notification requirements
    35.         An RSE licensee must notify APRA within 10 business days when it:

       (a)          becomes aware of a significant breach of, or material deviation from, the risk management framework; or

       (b)          discovers that the risk management framework did not adequately address a material risk.

    36.         An RSE licensee must notify APRA, as soon as practicable, when it becomes aware of any material changes to the size, business mix and complexity of the RSE licensee's business operations.

Adjustments and exclusions
    37.         APRA may, by notice in writing to an RSE licensee, adjust or exclude a specific prudential requirement in this Prudential Standard in relation to that RSE licensee.[17]

Attachment A

Risk management declaration
For the purposes of paragraph 32 of this Prudential Standard, an RSE licensee's risk management declaration must cover the following matters:

    (a)          the RSE licensee has in place systems for ensuring compliance with all prudential requirements;

    (b)          the systems and resources that are in place for managing and monitoring risks, and the risk management framework, are appropriate to the RSE licensee, having regard to the size, business mix and complexity of the RSE licensee's business operations;

    (c)          the RSE licensee has assessed the risks of outsourcing any business activity, and is satisfied that the risks and relevant controls relating to these risks are appropriate to the RSE licensee, having regard to the size, business mix and complexity of the RSE licensee's business operations and the operational capabilities of the RSE licensee itself;

    (d)          the risk management and internal control systems in place are operating effectively and are adequate having regard to the risks they are designed to control;

    (e)          the RSE licensee has an RMS that complies with this Prudential Standard, and that the RSE licensee has complied with each measure and control described in the RMS;

    (f)           the RSE licensee is satisfied with the efficacy of the processes and systems surrounding the production of financial information for each RSE within its business operations;

    (g)          the RSE licensee has adequate reporting systems and internal controls supporting the preparation and reporting of accurate financial and statistical information to APRA; and

    (h)          information provided to APRA accurately represents the transactions for the year and financial position at year end in accordance with the provisions of the SIS Act and FSCOD Act.

    [1]  For the purposes of this Prudential Standard, 'RSE licensee' has the meaning given in section 10(1) of the