Document ID: chunk:federal_register_of_legislation:F2019L00648:body:0:p10
Version: federal_register_of_legislation:F2019L00648
Segment Type: other
Provision Reference: 
Character Range: 24612–27503

for responsible persons under CPS 520.[16]

Any reference in this Prudential Standard to authorisation by an agent in Australia includes authorisation by a delegate.

Repatriation of assets

30.         Any declared repatriation of net assets in Australia by a Category C insurer out of the current year profits of its branch in Australia is excluded from being an asset in Australia.[17] For the purposes of this paragraph, Category C insurers must also consider paragraphs 11 to 23.

Assets held through a corporate agent

31.         An asset held under an agreement between a Category C insurer and a corporate agent is excluded from being an asset in Australia if the corporate agent engages in any business or commercial activity other than activities in its capacity as agent in Australia, unless that activity:

       (a)          is necessary for, or reasonably incidental to, the corporate agent's activities as agent in Australia; or

       (b)          has been approved by APRA in writing.

32.         APRA may give approval under paragraph 31(b) if satisfied that the corporate agent's conduct of that business or activity will not prejudice the efficient and proper discharge of the corporate agent's duties as an agent in Australia.

Assets must be of a kind that would not be excluded if held by a locally incorporated insurer

33.         An asset held:

       (a)          for a Category C insurer in accordance with paragraph 25; or

       (b)          directly by the Category C insurer in accordance with paragraph 27

   is excluded from being an asset in Australia if it would not be an asset in Australia if it were held by or for a locally incorporated insurer (either because it would be excluded under a provision of this Prudential Standard or because it would not otherwise be an asset in Australia within the meaning of paragraph 28(a) of the Act).[18]

34.         To facilitate the operation of paragraph 33, APRA may, where appropriate, exercise any power in the provisions of this Prudential Standard relating to locally incorporated insurers, as if an asset or assets held by a custodian or agent in Australia for a Category C insurer were instead held by or for a locally incorporated insurer.

Prudential Capital Requirement for Category C insurers

35.         As noted in Prudential Standard GPS 110 Capital Adequacy, Category C insurers do not typically have capital instruments of the type specified in GPS 112. Category C insurers are nevertheless required to meet a variant of the Prudential Capital Requirement (PCR). Specifically, Category C insurers are required to maintain assets in Australia, which exceed their liabilities in Australia (adjusted for any surplus or deficit of technical provisions relative to those required by Prudential Standard GPS 340 Insurance Liability Valuation) by an amount that is greater than