The key requirements of this Prudential The key requirements of this Prudential Standard for locally incorporated regulated institutions include:

The key requirements of this Prudential Standard for locally incorporated regulated institutions include:

• specific requirements with respect to Board size and composition;
• the chairperson of the Board of directors must be an independent director;
• a Board Audit Committee must be established;
• the Board must have a policy on Board renewal and procedures for assessing Board performance; and
• a Board Remuneration Committee must be established.

Other requirements for a regulated institution include:

• the institution must have a Remuneration Policy that aligns remuneration and risk management;
• the institution must have a dedicated internal audit function; and
• certain provisions dealing with independence requirements apply for auditors consistent with those in the Corporations Act 2001.

A number of the requirements in this Prudential Standard apply to foreign authorised deposit-taking institutions, Category C insurers and eligible foreign life insurance companies.