Document ID: chunk:federal_register_of_legislation:F2023L01380:body:0:p2
Version: federal_register_of_legislation:F2023L01380
Segment Type: other
Provision Reference: 
Character Range: 2798–5934

(Supervision) Act 1993.

subsidiary has the meaning given in Prudential Standard GPS 001 Definitions.

the prudential standard means Prudential Standard CPS 190 Recovery and Exit Planning.

Schedule
Prudential Standard CPS 190 Recovery and Exit Planning comprises the document commencing on the following page.

Prudential Standard CPS 190

Recovery and Exit Planning
Objectives and key requirements of this Prudential Standard
The objective of this Prudential Standard is to ensure that all APRA-regulated entities are adequately prepared for scenarios that may impact the financial viability of their business, including, in the case of an RSE licensee, its ability to act in the best financial interests of beneficiaries on an ongoing basis.
This Prudential Standard requires APRA-regulated entities to develop and maintain a recovery and exit plan, and capabilities to be able to anticipate, manage and respond to periods of stress. The plan must be appropriate to the size, business mix and complexity of the entity, and be approved by the Board.
The key requirements of this Prudential Standard are that an APRA-regulated entity must maintain a credible plan that includes:
     * actions that could be taken to restore the financial resilience of the entity during or following stress;
     * actions that could effect an orderly exit from the industry, if recovery actions are not effective; and
     * indicators of potential stress to achieve timely and effective execution of recovery or exit actions if needed.

Authority
     1. This Prudential Standard is made under:

(a)          section 11AF of the Banking Act 1959 (Banking Act);
(b)          section 32 of the Insurance Act 1973 (Insurance Act);
(c)          section 230A of the Life Insurance Act 1995 (Life Insurance Act);
(d)          section 92 of the Private Health Insurance (Prudential Supervision) Act 2015 (PHIPS Act); and
(e)          section 34C of the Superannuation Industry (Supervision) Act 1993 (SIS Act).

Application, definitions and commencement
2.             Subject to paragraphs 3 and 4, this Prudential Standard applies to all APRA-regulated entities, defined as:

(a)          authorised deposit-taking institutions (ADIs) and non-operating holding companies authorised under the Banking Act (authorised banking NOHCs), but excluding purchased payment facility providers;
(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 registered NOHCs;
(d)          private health insurers; and
(e)          RSE licensees under the SIS Act in respect of their business operations.[1]
3.             The obligations imposed by this Prudential Standard on, or in relation to, a Category C insurer or an EFLIC apply only in relation to the Australian branch operations of that entity. This Prudential Standard does not apply to a foreign ADI unless APRA determines that all