Document ID: chunk:federal_register_of_legislation:F2023L01348:reg:17:p5
Version: federal_register_of_legislation:F2023L01348
Segment Type: reg
Provision Reference: reg 17 (pt 5/6)
Character Range: 60905–63558

(excluding one-off payments), a description of the method used to ensure risk management outcomes are assessed and consequence management applied in the event of a material breach or misconduct; and
(f)           a description of the ways in which the APRA-regulated entity defers and adjusts variable remuneration to take account of longer-term performance, including risk performance.

[1]  For the purposes of this Prudential Standard, an 'RSE licensee' has the meaning given in subsection 10(1) of the SIS Act. An 'RSE licensee's business operations' includes all activities of an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee.

[2]  This power is to be exercised under paragraph 18.
[3]  Where a Level 2 group operates within a Level 3 group, a requirement expressed as applying to a Head of a group is to be read as applying to the Level 3 Head. For the avoidance of doubt, the reference to 'Head of a group' does not apply to an RSE licensee.

[4]  Given this paragraph prevents this Prudential Standard from giving rise to such an acquisition of property in relation to variable remuneration payable under such a contract, compensation will not be payable under section 69E of the Banking Act, section 127A of the Insurance Act, section 251 of the Life Insurance Act or section 8 of the PHIPS Act. Equally, compensation would not be payable in respect of the superannuation sector noting section 349B of the SIS Act.
[5]  A reference to a 'connected entity' has the meaning given in subsection 10(1) of the SIS Act.
[6]  A reference to a 'related body corporate' has the meaning given in section 50 of the Corporations Act 2001 (Corporations Act).
[7]  For the avoidance of doubt, a reference to 'group' also includes a group as defined in APS 001; For an RSE licensee, 'group' includes where an RSE licensee is part of a corporate group.

[8]  APS 001, GPS 001, LPS 001 and HPS 001 define this term in relation to other APRA-regulated entities.
[9]  APS 001, GPS 001, LPS 001 and HPS 001 define this term in relation to other APRA-regulated entities.
[10]  As required under Prudential Standard CPS 220 Risk Management and for an RSE licensee Prudential Standard SPS 220 Risk Management.
[11]  For an RSE licensee, as set out in SPS 510, another Board Committee may carry out this function with respect to risk management. Consultation with a Board Risk Committee does not apply to a foreign ADI or Category C insurer.
[12]  No component of variable remuneration may