Application

2. This Prudential Standard applies to all ‘APRA-regulated institutions’[1] defined as:

(a) authorised deposit-taking institutions (ADIs), including foreign ADIs, and non-operating holding companies authorised under the Banking Act (authorised banking NOHCs);

(b) general insurers, including Category C insurers, non-operating holding companies authorised under the Insurance Act (authorised insurance NOHCs) and parent entities of Level 2 insurance groups;

(c) life companies, including friendly societies and eligible foreign life insurance companies (EFLICs), and non-operating holding companies registered under the Life Insurance Act (registered life NOHCs); and

(d) private health insurers registered under the PHIPS Act.

3. APRA-regulated institutions must 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 branch operations of that institution.

4. Where an APRA-regulated institution is the ‘Head of a group’,[2] it must comply with a requirement of this Prudential Standard:

(a) in its capacity as an APRA-regulated institution;

(b) by ensuring that the requirement is applied appropriately throughout the group, including in relation to institutions that are not APRA-regulated; and

(c) on a group basis.

In applying the requirements of this Prudential Standard on a group basis, references in paragraphs 9, 19 to 56, and Attachment A to an ‘APRA-regulated institution’ should be read as ‘Head of a group’ and references to ‘institution’ should be read as ‘group’.

5. This Prudential Standard commences on 1 July 2019.