Document ID: chunk:federal_register_of_legislation:F2023L01384:body:0:p3
Version: federal_register_of_legislation:F2023L01384
Segment Type: other
Provision Reference: 
Character Range: 5841–8886

determined by APRA to provide critical functions.
5.             Where an APRA-regulated entity is the Head of a group,[2], [3] it must comply with an applicable requirement of this Prudential Standard:
(a)          in its capacity as an APRA-regulated entity;
(b)          by ensuring that the requirement is applied appropriately throughout the group,[4] including in relation to entities that are not APRA-regulated; and
(c)          on a group basis.
6.             In applying the requirements of this Prudential Standard on a group basis, references to an 'APRA-regulated entity' must be read as 'Head of a group' and references to 'entity' must be read as 'group'.
7.             This Prudential Standard commences on 1 January 2024. An APRA-regulated entity will be subject to the requirements of this Prudential Standard following notification from APRA.

Interpretation
8.             Terms that are defined in Prudential Standard 3PS 001 Definitions (3PS 001), Prudential Standard APS 001 Definitions (APS 001), Prudential Standard GPS 001 Definitions (GPS 001), Prudential Standard LPS 001 Definitions (LPS 001) or Prudential Standard HPS 001 Definitions (HPS 001) appear in bold the first time they are used in this Prudential Standard.
9.             In this Prudential Standard, 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.
10.         Where this Prudential Standard provides for APRA to exercise a power or discretion, the power or discretion is to be exercised in writing.

Definitions
11.         The following definitions are used in this Prudential Standard:
(a)          critical function – means any function provided by an APRA-regulated entity that is important to financial system stability or the availability of essential financial services to a particular industry or community;
(b)          non-significant financial institution (non-SFI) – means, in relation to RSE licensees, an RSE licensee that is not a significant financial institution;[5]
(c)          resolution – means the process by which APRA or other relevant persons manage or respond to an APRA-regulated entity:
(i)            being unable to meet its obligations; or
(ii)         being considered likely to be unable, or being considered likely to become unable, to meet its obligations; or
(iii)       suspending payment, or being considered likely to suspend payment;
including through the exercise of powers and functions under prudential standards or any other law;
(d)          resolution option – means a strategy that APRA may use to effect a resolution;
(e)          resolution plan – means a plan developed by APRA under paragraph 13 of this Prudential 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