Document ID: chunk:federal_register_of_legislation:F2019L00648:body:0:p3
Version: federal_register_of_legislation:F2019L00648
Segment Type: other
Provision Reference: 
Character Range: 5682–8738

a Commonwealth, state or territory law. Category A insurers, Category B insurers, Category D insurers and Category E insurers are locally incorporated insurers;

       (m)        'managed investment scheme' has the same meaning as in the Corporations Act 2001 (Corporations Act);

       (n)          'responsible entity' has the same meaning as in the Corporations Act;

       (o)          SPV means:

           (i)            a subsidiary of an insurer; or

           (ii)         a unit trust in which an insurer has invested

       where the predominant function of the subsidiary or trust is to hold an  investment or investments (whether directly or indirectly) for the insurer (or for the insurer and one or more related bodies corporate of the insurer), but excludes:

           (i)            a managed investment scheme; and

           (ii)         a trust where the entire interest of the relevant insurer as beneficiary in the trust is a proprietary interest in a particular asset or particular assets (rather than, for example, a mere interest in the due administration of the trust)[3];

       (p)          'sub-custodian' means:

           (i)            a person to whom a custodian has contractually delegated the task of holding property for a customer of the custodian; and

           (ii)         a person to whom a sub-custodian of the kind referred to in paragraph (i) has contractually delegated the task of holding such property, or to whom that task has been further contractually delegated

           but does not include a depository.

8.             APRA may determine, in writing, for the purposes of the definition of SPV, that the predominant function of a subsidiary or unit trust is to hold investments (whether directly or indirectly) for an insurer (or for the insurer and one or more related bodies corporate of the insurer), but a subsidiary or trust may fall within that definition even if APRA does not make such a determination.

9.             Where this Prudential Standard refers to an asset (however described) being excluded from being an asset in Australia, an amount corresponding to the value of the asset is taken to be so excluded for the purposes of paragraph 28(a) of the Act.[4]

Locally incorporated insurers

10.         Paragraphs 11 to 23 apply to all insurers other than Category C insurers. However, Category C insurers must consider paragraphs 11 to 23 for the purposes of paragraph 30.

Intangibles and certain other assets

11.         Assets that must be deducted from a locally incorporated insurer's capital base[5] under Prudential Standard GPS 112 Capital Adequacy: Measurement of Capital (GPS 112) are excluded from being assets in Australia.[6]

Chattels and real property

12.         A chattel or real property of a locally incorporated insurer is excluded from being an asset in Australia if it is located outside Australia.

Loans and amounts due (including debentures)

13.         Subject to subsection 116A(1) and subsection 116A(5) of the Act, an