Document ID: chunk:federal_register_of_legislation:F2012L02221:body:0:p5
Version: federal_register_of_legislation:F2012L02221
Segment Type: other
Provision Reference: 
Character Range: 10858–13849

RSE;
       (c)          how the RSE licensee will replenish the financial resources held to meet the ORFR target amount, including the source of funding; and
       (d)          the expected date for the RSE licensee to again meet the ORFR target amount.
    21.         An RSE licensee's replenishment plan must be approved by the Board prior to implementation.

    22.         APRA may require an RSE licensee to revise its replenishment plan if APRA considers that the plan does not meet the requirements of this Prudential Standard.

Review and audit
    23.         An RSE licensee must review its ORFR target amount and tolerance limit annually to ensure that the ORFR target amount and tolerance limit are adequate based on the size, business mix and complexity of the RSE licensee's business operations, and that the ORFR target amount and tolerance limit suitably reflect the operational risks identified in the RSE licensee's risk management framework.

    24.         An RSE licensee must review the appropriateness of its ORFR target amount and tolerance limit following any material change to the operational risks identified in its risk management framework or the size, business mix and complexity of an RSE within its business operations.

    25.         An RSE licensee must implement satisfactory internal audit procedures and external audit arrangements to ensure compliance with, and the adequacy and effectiveness of, the ORFR strategy.[10]

    26.         APRA may require the appointment of an appropriate external expert to provide an assessment of, and report on, the adequacy and effectiveness of, the RSE licensee's ORFR strategy. The report must be paid for by the RSE licensee and must be made available to APRA within 10 business days after it has been provided to the RSE licensee.

Notification requirement
27.         An RSE licensee must notify APRA, within 10 business days, if:
       (a)          it determines the ORFR target amount must be adjusted to ensure ongoing compliance with this Prudential Standard;
       (b)          the financial resources have fallen below the tolerance limit;
       (c)          the RSE licensee becomes aware of an emerging operational risk event, or combination of emerging operational risk events, that would require the use of a material amount of the financial resources held to meet the ORFR target amount;
       (d)          the RSE licensee becomes aware that an operational risk event has occurred that it determines may require the use of a material amount of the financial resources held to meet the ORFR target amount; or
       (e)          any other RSE licensee-determined material trigger event has occurred that may require the use of financial resources held to meet the ORFR target amount.
Transitional arrangements
28.         An RSE licensee must build the financial resources to meet the ORFR target amount within three years of the effective date in a manner that ensures that the RSE