Limits and approvals

17. Where, in APRA’s view, the Level 3 group is exposed to a significant level of aggregate risk exposure in specific risks, APRA may require a Level 3 Head to limit or reduce the Level 3 group’s level of aggregate risk exposure. APRA may also determine how a Level 3 Head must calculate an aggregate risk exposure. In determining any requirement to limit or reduce the Level 3 group’s level of aggregate risk exposure, or how a Level 3 Head must calculate an aggregate risk exposure, APRA may take account of the following factors:

(a) whether the Level 3 group has been acting in a manner that is consistent with the aggregate risk exposures policy;

(b) the characteristics of aggregate risk exposures, including their number, size and nature;

(c) the characteristics of the Level 3 group, including the nature of its business and the experience of its management; and

(d) other relevant factors to be considered on a case-by-case basis.