Non-consolidated subsidiaries for ADIsNon-consolidated subsidiaries for ADIs

Non-consolidated subsidiaries for ADIs

1. For the purposes of determining an ADI’s capital adequacy at Level 2, all banking and other financial activities (subject to paragraph 5 of this Attachment), both regulated and unregulated, conducted within the banking group must be consolidated.
2. Consolidation at Level 2 must cover the global operations of:
   1. an ADI and all its subsidiaries; or
   2. where an ADI is a subsidiary of an authorised NOHC, the ADI’s immediate parent NOHC and all the immediate parent NOHC’s subsidiaries,

as well as any other controlled banking entities, securities entities and other financial entities, except for entities involved in the following business activities:

1. insurance (including friendly societies and health funds);
2. acting as manager, responsible entity, approved trustee, trustee or similar role in relation to funds management;
3. non-financial (commercial) operations; and
4. securitisation special purpose vehicles, to which assets have been transferred in accordance with the operational requirements for regulatory capital relief outlined in Attachment A of Prudential Standard APS 120 Securitisation.