Document ID: chunk:federal_register_of_legislation:F2018L01390:body:0:p2
Version: federal_register_of_legislation:F2018L01390
Segment Type: other
Provision Reference: 
Character Range: 2791–5771

Act 1959.

APRA means the Australian Prudential Regulation Authority.

authorised banking NOHC has the meaning given to the expression authorised NOHC in section 5 of the Banking Act 1959.

authorised insurance NOHC has the meaning given to the expression authorised NOHC in subsection 3(1) of the Insurance Act 1973.

    friendly society has the meaning given in section 16C of the Life Insurance Act 1995.

    general insurer has the meaning given in section 11 of the Insurance Act 1973.

    life company has the meaning given in the Schedule to the Life Insurance Act 1995.

private health insurer has the meaning given in section 4(1) of Private Health Insurance (Prudential Supervision) Act 2015.

registered life NOHC has the meaning given to the expression registered NOHC in the Schedule to the Life Insurance Act 1995.

Schedule

Prudential Standard CPS 520 Fit and Proper comprises the 24 pages commencing on the following page.

Prudential Standard CPS 520

Fit and Proper
Objectives and key requirements of this Prudential Standard
This Prudential Standard sets out minimum requirements for APRA-regulated institutions in determining the fitness and propriety of individuals to hold positions of responsibility. Its objective is to ensure that an institution prudently manages the risks that persons acting in responsible person positions who are not fit and proper pose to the institution's business and financial standing.
The ultimate responsibility for ensuring the fitness and propriety of the responsible persons of an APRA-regulated institution rests with its Board of directors (or equivalent).
Persons who are responsible for the management and oversight of an APRA-regulated institution, and persons employed by a member of the group whose activities may materially affect the business or financial standing of the group, need to have appropriate skills, experience and knowledge, and act with honesty and integrity. These skills and qualities strengthen the protection afforded to depositors, policyholders and other stakeholders. To this end, institutions need to prudently manage the risk that persons in positions of responsibility might not be fit and proper.
The key requirements of this Prudential Standard are that an APRA-regulated institution and a Head of a group must:
     * maintain a Fit and Proper Policy that meets the requirements of this Prudential Standard;
     * ensure that the fitness and propriety of a responsible person generally be assessed prior to initial appointment and then re-assessed annually;
     * take all prudent steps to ensure that a person is not appointed to, or does not continue to hold, a responsible person position for which they are not fit and proper;
     * ensure that additional requirements be met for certain auditors and Appointed and Reviewing Actuaries; and
     * ensure that certain information be provided to APRA regarding responsible persons and the APRA-regulated institution's