Document ID: chunk:federal_register_of_legislation:C2024A00104:section:376
Version: federal_register_of_legislation:C2024A00104
Segment Type: section
Provision Reference: s 376
Character Range: 591673–594204

376  Commissioner may make Financial and Prudential Standards
 (1) The Commissioner may, by legislative instrument, make standards in relation to financial and prudential matters.
Note 1: These standards are the Financial and Prudential Standards: see section 7.
Note 2: It is a condition of registration that a registered provider must comply with the provisions of the Financial and Prudential Standards that apply to the provider: see section 150. If a registered provider breaches a condition of registration, the provider may be liable to a civil penalty: see subsection 142(3).
 (2) The standards may only deal with the following:
 (a) requirements in relation to the liquidity and capital adequacy of registered providers;
 (b) requirements in relation to the keeping of financial records relating to the delivery of funded aged care services, including records about refundable deposits, fees, payments and contributions;
 (c) requirements in relation to governance systems and strategies that registered providers must have in place to ensure that they remain:
 (i) financially viable and sustainable; and
 (ii) able to comply with the other applicable requirements in the standards;
 (d) requirements in relation to the disclosure and reporting, by registered providers, of information that may assist the Commissioner to:
 (i) monitor the financial viability and sustainability of registered providers; and
 (ii) monitor the compliance of registered providers with the other applicable requirements in the standards; and
 (iii) quantify prudential and financial risk relating to registered providers;
 (e) requirements in relation to the management of investments by registered providers to ensure that they remain financially viable and sustainable;
 (f) requirements in relation to any other prudential matter prescribed by the rules.
 (3) Without limiting subsection (1), the standards may provide that a provision of the standards applies to the following:
 (a) all registered providers;
 (b) registered providers in specified provider registration categories;
 (c) specified kinds of registered providers.
 (4) Without limiting paragraph (2)(f), rules prescribing a prudential matter for the purposes of that paragraph may also prescribe that any standards made under subsection (1) dealing with that prudential matter only apply to registered providers in a specified provider registration category.
 (5) Subsections (3) and (4) of this section do not limit subsection 33(3A) of the Acts Interpretation Act 1901.