Document ID: chunk:federal_register_of_legislation:F2024L00886:body:0:p13
Version: federal_register_of_legislation:F2024L00886
Segment Type: other
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Character Range: 31791–37657

49.         A regulated institution must contact APRA if it seeks to place reliance, for the purposes of complying with this Prudential Standard, on a previous exemption or other exercise of discretion made by APRA under a previous version of this Prudential Standard.

Transition
50.         On application by a life company, APRA may grant transitional relief from the obligation for the life company to comply with any requirement in this Prudential Standard. Any relief granted by APRA under this paragraph will have effect until no later than two years after the commencement date of this standard.

Attachment A - Asset exposure limits
     1. The limits by type of asset exposure are:
     Asset exposure                                                                                                                                                                                                                                   Limit
(a)  Assets guaranteed by an Australian State or Federal government or by the national government of the country in whose currency the liabilities of the statutory fund or general fund are denominated:                                             No limit
(b)  A life insurance policy issued to the life company by a registered life company which is a related entity of the life company:                                                                                                                   No limit
(c)  Bank bills, bank guarantees, letters of credit issued by a bank, bank bonds and NCDs issued by a bank; or                                                                                                                                        The greater of:
     Assets guaranteed by an overseas provincial government (equivalent in status to an Australian State government), in the country in whose currency the liabilities of a statutory fund or a general fund are denominated:                           i)        25% of VAF; and
                                                                                                                                                                                                                                                        ii)     AUD 22 million.

(d)  Bank deposits                                                                                                                                                                                                                                    The greatest of:
                                                                                                                                                                                                                                                        i)        50% of VAF less the value of the assets of the fund secured by bank bills, bank guarantees, letters of credit issued by a bank, bank bonds and NCDs issued by a bank;
                                                                                                                                                                                                                                                        ii)     25% of VAF; and
                                                                                                                                                                                                                                                        iii)   AUD 22 million.

(e)  A reinsurance arrangement with a registered life company with a counterparty grade of 1, 2 or 3 that is not a related entity of the life company; or                                                                                             The greatest of:
     With APRA's written approval, a reinsurance arrangement in respect of overseas business, with a related entity with a counterparty grade of 1, 2 or 3 of a registered life company that has a statutory fund which is a specialist reinsurer:      i)        25% of VAF;
                                                                                                                                                                                                                                                        ii)     125% of capital base; and
                                                                                                                                                                                                                                                        iii)   AUD 22 million.

(f)  Outstanding premiums receivable by a reinsurer under a reinsurance policy with a registered life company with a counterparty grade of 1, 2 or 3:                                                                                                 The greatest of:
                                                                                                                                                                                                                                                        i)        25% of VAF;
                                                                                                                                                                                                                                                        ii)     125% of capital base; and
                                                                                                                                                                                                                                                        iii)   AUD 22 million.

(g)  A reinsurance arrangement with an APRA approved affiliated entity of the life company that is not a registered life company, where the related entity has a counterparty grade of 1, 2 or 3: