Document ID: chunk:federal_register_of_legislation:F2020L01591:body:0:p14
Version: federal_register_of_legislation:F2020L01591
Segment Type: other
Provision Reference: 
Character Range: 34429–36576

substance and form of the subsidiary and its relationship with the ADI. APRA may, at its discretion, require an ADI to provide additional information, including the provision of an accounting or legal opinion, on any of the requirements in this Attachment or deem that a subsidiary is no longer eligible to form part of an ELE.
[1]  A reference to the Board in the case of a foreign ADI, is a reference to the senior officer outside Australia.
[2]  A funds management vehicle holds assets and issues securities to (or receives funds from) investors in order to facilitate funds management activities.
[3]  Refer to subsection 11AF(2) of the Banking Act.
[4]  For the avoidance of doubt, paragraph 20 also applies to provision of support by a foreign-owned ADI to non-ADI entities operating in Australia directly owned by the ADI's foreign parent or by the parent's subsidiaries (and vice versa).
[5]  Outsourcing of the ADI's material business activities to a related entity must satisfy the prudential requirements set out in Prudential Standard CPS 231 Outsourcing.
[6]  These limits are measured against an ADI's or ELE's Level 1 capital calculated in accordance with Prudential Standard APS 111 Capital Adequacy: Measurement of Capital as appropriate. None of these limits should be taken to permit transactions or exposures which are otherwise prohibited by any Prudential Standard. The large exposure limits in paragraph 30 of Prudential Standard APS 221 Large Exposures do not apply to the exposures of an ADI to its related entities when this paragraph applies.
[7]  Refer to paragraph 8 of Attachment D to APS 111 on equity holdings and other capital support provided to financial institutions.
[8]  This does not apply to an exposure for which APRA has provided an approval under paragraph 44 of this Prudential Standard.
[9]  For the avoidance of doubt, this does not apply to purchases of a fund management vehicle's securities, which must comply with paragraph 6 of this Attachment.
[10]  For the avoidance of doubt, a reference to an ADI in this Attachment means an ADI as defined in section 5 of the Banking Act, rather than an ELE.