Document ID: chunk:federal_register_of_legislation:F2023L00682:body:0:p11
Version: federal_register_of_legislation:F2023L00682
Segment Type: other
Provision Reference: 
Character Range: 28165–31134

institution must inform APRA as soon as practicable of:
       (a)          any breach or prospective breach of its PCR;

       (b)          any significant departure from its ICAAP; or

       (c)          any significant adverse changes in the capital base or PCR.

    The notice must include any remedial actions taken or planned to be taken to address the situation, and the timing of these actions.

Adjustments and exclusions
53.         APRA may, by notice in writing to a regulated institution, adjust or exclude a specific requirement in this Prudential Standard in relation to that regulated institution.

Previous exercise of discretion
54.         A regulated institution must contact APRA if it seeks to place reliance, for the purposes of complying with this Prudential Standard, on a previous exemption or other exercise of discretion made by APRA under a previous version of this Prudential Standard.

Attachment A – Run-off plan
     1. Subject to Attachment A paragraphs 14 to 17 of Prudential Standard CPS 320 Actuarial and Related Matters (CPS 320), a run-off insurer must at all times maintain a 'run-off plan' (including a description of the run-off insurer's approach to capital management), unless otherwise agreed to by APRA.
     2. The run-off plan must be approved by the Board:
       (a)          prior to its adoption; and

       (b)          at any time it is amended during its operational cycle.

    3.             The run-off insurer's run-off plan must be a three-year rolling plan and the run-off insurer must review it at least annually (or as close to annually as is practicable). Under CPS 320, the Appointed Actuary of the run-off insurer must also review the run-off plan according to the requirements of CPS 320.
    4.             The run-off insurer must submit to APRA:
       (a)          a run-off plan after each annual review; and
       (b)          any amended run-off plan within 10 business days of Board approval.
    5.             APRA may, in writing, specify that a run-off plan be:
       (a)          a rolling plan of more or less than three years; and
       (b)          reviewed less frequently than as required in paragraph 3 of this Attachment;
    if, having regard to the particular circumstances of the run-off insurer, APRA considers it unnecessary for the purposes of the prudential supervision of the run-off insurer.
    6.             A run-off insurer that is both a Category C insurer and a run-off insurer must prepare a run-off plan in respect of the Australian branch operation but with consideration given to the ability of the insurer to transfer assets into Australia in order to ensure that the requirements of this Prudential Standard are met.
    7.             A run-off plan must include the matters listed in paragraph 8 of this Attachment.

Matters to be included in a run-off plan
    8.             For the purposes of paragraph 7 of this Attachment, the following