ApplicationApplication

Application

2. This Prudential Standard applies to:

(a) all ADIs, including foreign ADIs, and authorised banking NOHCs;

(b) all general insurers, including Category C insurers, authorised insurance NOHCs and parent entities of Level 2 insurance groups; and

(c) all life companies, including friendly societies and eligible foreign life insurance companies (EFLICs), and registered life NOHCs.

These institutions are collectively referred to as ‘regulated institutions’ in this Prudential Standard.

3. A requirement imposed upon a regulated institution that is also Head of a Level 2 group[1] is to be read as requiring that regulated institution to ensure that the applicable provision is applied appropriately throughout the Level 2 group.[2]

4. All regulated institutions have to comply with this Prudential Standard in its entirety, unless otherwise expressly indicated. The obligations imposed by this Prudential Standard on, or in relation to, a foreign ADI, a Category C insurer or an EFLIC apply only in relation to the Australian business of that institution.

5. This Prudential Standard applies whether or not activities are outsourced to related bodies corporate or third-party service providers. This Prudential Standard also applies to arrangements where the service provider is located outside Australia or the functions are performed outside Australia.

6. Nothing in this Prudential Standard prevents a regulated institution from adopting and applying a group policy used by a related body corporate[3], provided that the policy has been approved by the Board[4] of the regulated institution and meets the requirements of this Prudential Standard.

7. This Prudential Standard commences on 1 January 2013.