Commencement and transitional arrangemenCommencement and transitional arrangements

Commencement and transitional arrangements

93. This Prudential Standard commences on 1 July 2012 (effective date).

94. Upon commencement of this Prudential Standard, the existing requirements contained in Prudential Standard APS 510 Governance (APS 510), Prudential Standard GPS 510 Governance (GPS 510) and Prudential Standard LPS 510 Governance (LPS 510) will cease to have effect.

Adjustments and exclusions

95. APRA may, by notice in writing to a regulated institution, adjust or exclude a specific prudential requirement in this Prudential Standard in relation to that regulated institution.[23]

Determinations made under previous prudential standards

96. An exercise of APRA’s discretion (such as an approval, waiver or direction) under a previous version of this Prudential Standard continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard.

For the purposes of this paragraph, ‘a previous version of this Prudential Standard’ includes:

(a) APS 510 made on 26 November 2009;

(b) GPS 510 made on 26 November 2009; and

(c) LPS 510 made on 2 March 2010.

Attachment A[24]

A director is not independent if the director:

1. is a substantial shareholder[25] of the regulated institution or an officer of, or otherwise associated directly with, a substantial shareholder of the regulated institution;

2. is employed, or has previously been employed in an executive capacity by the regulated institution or another group member, and there has not been a period of at least three years between ceasing such employment and serving on the Board;

3. has within the last three years been a principal of a material professional adviser or a material consultant to the regulated institution or another group member, or an employee materially associated with the service provided;

4. is a material supplier or customer of the regulated institution or another group member, or an officer of or otherwise associated directly or indirectly with a material supplier or customer; or

5. has a material contractual relationship with the regulated institution or another group member other than as a director.