Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:1_32
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 1 cl 32
Character Range: 42900–45827

32  APRA may determine prudential standards

 (1) APRA may determine (in writing) standards (prudential standards) relating to prudential matters that must be complied with by:
 (a) all general insurers; or
 (b) all authorised NOHCs; or
 (c) the subsidiaries of general insurers or authorised NOHCs; or
 (d) a specified class of general insurers, authorised NOHCs or subsidiaries of general insurers or authorised NOHCs.

 (2) A prudential standard may impose different requirements to be complied with:
 (a) by different classes of general insurers, authorised NOHCs, or subsidiaries of general insurers or authorised NOHCs; or
 (b) in different situations; or
 (c) in respect of different activities.

 (3A) APRA may modify a prudential standard to replace particular requirements in the standard with an in-house capital adequacy model proposed by a general insurer, authorised NOHC or subsidiary of a general insurer for the purpose of setting its capital requirements. The in-house capital adequacy model proposed by the general insurer, authorised NOHC or subsidiary must comply with criteria set out in the prudential standards.

 (3B) In modifying a prudential standard, APRA must have regard to the particular business and circumstances of the general insurer, authorised NOHC or subsidiary concerned.

 (3C) If APRA modifies a prudential standard in respect of a particular general insurer, authorised NOHC or subsidiary of a general insurer or authorised NOHC under subsection (3A), APRA must give written notice of the modification to the general insurer, authorised NOHC or subsidiary concerned.

 (3D) The prudential standards may provide for APRA to exercise powers and discretions under the standards, including but not limited to discretions to approve, impose, adjust or exclude specific prudential requirements in relation to the following:
 (a) a particular general insurer, authorised NOHC or subsidiary of a general insurer or authorised NOHC;
 (b) specified general insurers, authorised NOHCs or subsidiaries of general insurers or authorised NOHCs;
 (c) a class of general insurers, authorised NOHCs or subsidiaries of general insurers or authorised NOHCs.

 (3E) APRA must obtain the Treasurer's written agreement before modifying a prudential standard under subsection (3A).

 (4) A prudential standard takes effect on the day on which the determination of the standard is made or such later day as is specified in the determination.

 (5) A determination of a prudential standard, or a variation or revocation of a prudential standard, is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.

 (6) Despite section 49A of the Acts Interpretation Act 1901, the standards may make provision for or in relation to a matter by applying, adopting or incorporating any matter contained in an instrument or other writing as in force or existing from time to time.