Document ID: chunk:federal_register_of_legislation:F2020L01591:body:0:p6
Version: federal_register_of_legislation:F2020L01591
Segment Type: other
Provision Reference: 
Character Range: 13623–16517

be able to demonstrate to APRA that its home supervisor is aware of the obligations and has no objection to the transaction.

Group badging and disclosures
24.         An ADI must not use a brand name in common with members of its conglomerate group except where the ADI and group members clearly and prominently disclose their roles and responsibilities in order to reduce the risk of giving the impression that a non-ADI member of the group is an ADI, or that a group member is guaranteed or supported by an ADI in the group.
25.         Unless otherwise prohibited by the laws of a foreign jurisdiction, when there are financial transactions between an external counterparty and a member of the ADI's group that uses a common brand name with the ADI, the ADI must ensure that disclosure to the external counterparty includes that:
(a)          the group member with whom the counterparty is dealing is not an ADI (where this is the case) and that the member's obligations do not represent deposits or other liabilities of the ADI in the group;
(b)          the ADI does not stand behind the group member, unless support is provided for in legal documentation (refer to paragraphs 20 and 23 of this Prudential Standard). Where support is provided for, the nature and limitations of the ADI's obligations arising from its involvement must be disclosed; and
(c)          the investor is exposed to investment risk including possible delays in repayment and loss of income and principal invested, as relevant.
26.         APRA may require an ADI to not use a brand name in common with a group member if that would give rise to a prudential concern having regard to the following factors:
(a)          the presence of appropriate disclosures;
(b)          the type of entity involved (whether the group member is regulated or unregulated);
(c)          the group member's risk profile, reputation and associations;
(d)          the manner in which various products and services are marketed;
(e)          the types of customers involved with the group member; and
(f)           other factors on a case-by-case basis.

Participation in group operations
27.         An ADI must establish policies and procedures to address risks posed to the ADI from participating in group operations including, but not limited to, sharing premises with other group members, centralising back-office functions or outsourcing services to other group members.
28.         Where an ADI participates in group operations, the ADI must:
(a)          ensure that those operations do not adversely affect the safety and soundness of the ADI as a stand-alone entity;
(b)          be satisfied that any exposures generated are addressed by the ADI's policies and procedures on participating in group operations;
(c)          ensure dealings with other parties arising from participation in group operations are appropriately