Document ID: chunk:federal_register_of_legislation:F2023L01348:front:0:p12
Version: federal_register_of_legislation:F2023L01348
Segment Type: other
Provision Reference: 
Character Range: 31397–34541

of the remuneration framework against the requirements of this Prudential Standard at least annually.
55.         In addition to the annual review of compliance, the effectiveness of the remuneration framework must be subject to a comprehensive review by operationally independent, appropriately experienced and competent persons at least every three years.
56.         An APRA-regulated entity must document and report the results of the reviews required under paragraphs 54 and 55 of this Prudential Standard to the Board Remuneration Committee, or relevant oversight function, in a timely manner. The Board Remuneration Committee, or relevant oversight function, must take appropriate and timely action to ensure the findings of these reviews are adequately considered and addressed.
57.         An APRA-regulated entity's effectiveness review required under paragraph 55 of this Prudential Standard must assess:
(a)          compliance of the remuneration framework with paragraph 21 of this Prudential Standard;
(b)          whether the remuneration framework and its elements are operating as intended;
(c)          whether the design of the remuneration framework is appropriate and fit for purpose; and
(d)          the alignment of remuneration outcomes with the performance and risk outcomes achieved.
58.         Where an APRA-regulated entity identifies a material change to the size, business mix and complexity of the operations outside the review required in paragraph 55, it must consider and address the need to amend or review the remuneration framework to take account of these developments at that time.

Other requirements
59.         In relation to the requirements for a Board Remuneration Committee and remuneration policy, where an APRA-regulated entity is part of a group, or corporate group in the case of a private health insurer, the Board of the APRA-regulated entity may:
(a)          use a group Board Remuneration Committee as the Board Remuneration Committee for the APRA-regulated entity, provided that:
(i)            the requirements set out in this Prudential Standard are met;
(ii)         all members of the group Board Remuneration Committee are non-executive directors of the Head of the group in the context of an ADI, general insurer or life company;[16] and
(iii)       the Board of the entity has free and unfettered access to the group Board Remuneration Committee; and
(b)          adopt and apply a group remuneration policy that is also used by a related body corporate or a connected entity provided that the group remuneration policy:
(i)            meets the requirements of this Prudential Standard;
(ii)         has been approved by the Board or relevant oversight function; and
(iii)       gives appropriate regard to the entity's business activities, its specific requirements and its remuneration framework.
60.         An APRA-regulated entity may apply to APRA for approval of alternative Board Remuneration Committee arrangements that meet the objectives of this Prudential Standard. APRA may approve alternative arrangements for the entity if satisfied that those arrangements will,