Document ID: chunk:federal_register_of_legislation:F2023L01572:front:0:p2
Version: federal_register_of_legislation:F2023L01572
Segment Type: other
Provision Reference: 
Character Range: 3013–5975

provisions of this Prudential Standard relating to separation and disclosure (paragraphs 13 to 18), risk management framework (paragraph 72) and self-assessment (paragraph 73 only).
4.             A reference to an ADI in this Prudential Standard, unless otherwise indicated, is a reference to:
(a)          an ADI on a Level 1 basis; and
(b)          a group of which an ADI is a member on a Level 2 basis.
5.             If an ADI to which this Prudential Standard applies is:
(a)          the holding company for a group, the ADI must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable; or
(b)          a subsidiary of an authorised NOHC, the authorised NOHC must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable.

Interpretation
6.             In this Prudential Standard:
(a)                        terms that are defined in Prudential Standard APS 001 Definitions appear in bold the first time they are used; and
(b)          unless the contrary intention appears, a reference to an Act, Regulations, Prudential Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
7.             Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

Scope
8.             Except where otherwise provided, this Prudential Standard applies to all roles undertaken by, and investments of, an ADI in a securitisation. This Prudential Standard applies whether the exposures in the pool have been:
(a)          on an ADI's balance sheet;
(b)          originated by an ADI into the pool without being first on the ADI's balance sheet; or
(c)          originated by any other entity.
9.             An ADI must apply the capital adequacy requirements set out in this Prudential Standard to securitisation exposures held in its banking book. Securitisation exposures held in an ADI's trading book are subject to Prudential Standard APS 116 Capital Adequacy: Market Risk, except that securitisation exposures held in the trading book must be deducted from Common Equity Tier 1 Capital if they are required by this Prudential Standard to be deducted if held in the banking book.
10.         This Prudential Standard applies to securitisations, whether traditional, synthetic or containing features common to both. APRA may determine that this Prudential Standard applies to a particular arrangement, as if it were a securitisation, if APRA considers that it has features similar to a securitisation and gives rise to similar prudential risks.
11.         For the purpose of calculating the Level 2 Regulatory Capital requirement, for the underlying exposures in the pool or the securitisation exposures, of an overseas banking subsidiary that is prudentially regulated by a prescribed New Zealand authority, an ADI must calculate