Document ID: chunk:federal_register_of_legislation:F2022L01578:front:0:p3
Version: federal_register_of_legislation:F2022L01578
Segment Type: other
Provision Reference: 
Character Range: 5867–8948

Standard applies to all:
(a)          authorised deposit-taking institutions (ADIs), including foreign ADIs, and non-operating holding companies authorised under the Banking Act (authorised banking NOHCs);
(b)          general insurers, including Category C insurers, non-operating holding companies authorised under the Insurance Act (authorised insurance NOHCs), and parent entities of Level 2 insurance groups;
(c)          life companies including friendly societies and eligible foreign life insurance companies (EFLICs), and non-operating holding companies registered under the Life Insurance Act (registered life NOHCs); and
(d)          RSE licensees under the SIS Act in respect of their business operations.[1]
3.             The requirements in this Prudential Standard apply in respect of each 'APRA covered entity', defined as:
(a)          an ADI, including a foreign ADI, and an authorised banking NOHC;
(b)          a general insurer, including a Category C insurer, an authorised insurance NOHC and a parent entity of a Level 2 insurance group;
(c)          a life company, including a friendly society and an EFLIC, and a registered life NOHC; and
(d)          a registrable superannuation entity under the SIS Act (RSE).
4.             A requirement imposed on an APRA covered entity that is also the Head of a Level 2 group is to be read as requiring that APRA covered entity to ensure that each member of the Level 2 group that is a covered counterparty complies with the requirements of this Prudential Standard as if it were itself an APRA covered entity.[2]
5.             The requirements in this Prudential Standard apply to transactions which are booked in the accounts of an APRA covered entity. For a foreign ADI, Category C insurer or EFLIC, the requirements in this Prudential Standard apply only to transactions booked in accounts of the Australian branch of that entity.
6.             This Prudential Standard commences on 1 January 2023.

Interpretation
7.             Terms that are defined in Prudential Standard APS 001 Definitions (APS 001), Prudential Standard GPS 001 Definitions (GPS 001) or Prudential Standard LPS 001 Definitions appear in bold the first time they are used in this Prudential Standard.
8.             Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing. In this Prudential Standard, unless the contrary intention appears, a reference to an Act, Regulations, Prudential Standard or Australian Accounting Standard is a reference to the instrument as in force from time to time.

Definitions
9.             The following definitions are used in this Prudential Standard:
(a)          aggregate month-end average notional amount — is the simple average of the total notional amount[3] of outstanding non-centrally cleared derivative transactions as at the end of each month in the reference period. The total notional amount is the aggregate of all outstanding non-centrally cleared derivative transactions across all entities within the