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Guidance Note AGN 110.1

Conglomerate Group

1. For the purposes of Prudential Standard APS 110 Capital Adequacy (APS 110) and this Guidance Note, a conglomerate group is defined as a group of companies containing one or more locally incorporated authorised deposit-taking institutions (ADIs). Any reference to an ADI in APS 110 and this Guidance Note applies to each ADI member of a conglomerate group on an individual basis.
2. A conglomerate group must be headed by an ADI or an authorised non‑operating holding company (NOHC)[2] and may include non-financial (commercial) as well as financial entities (regulated and unregulated). A “regulated entity” in a conglomerate group refers to any entity directly regulated by APRA or by an equivalent banking, insurance or similar prudential regulator overseas.
3. A foreign-owned locally incorporated ADI and its subsidiaries constitute a conglomerate group for the purposes of APS 110 and this Guidance Note. Alternatively, where the foreign-owned ADI has a locally incorporated NOHC parent, the conglomerate group will comprise the locally incorporated NOHC and all its subsidiaries. The ADI’s foreign parent(s), the foreign parent’s overseas based subsidiaries and their directly owned non-ADI entities operating in Australia do not form part of the conglomerate group. APRA, however, expects the foreign parent to be subject to regulatory oversight broadly consistent with that applied by APRA and, should the need arise, provide APRA with information concerning activities of their subsidiaries outside the Australian conglomerate group.