Banking (prudential standard) determination No. 3 of 2007 - Prudential Standard APS 110 - Capital Adequacy
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Attachment B
Conglomerate group
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For the purposes of this Prudential Standard, a conglomerate group is a group of companies that are related to each other within the meaning of section 50 of the Corporations Act 2001 where the group includes one or more ADIs that have been incorporated within Australia.
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Subject to paragraph 3 of this Attachment, unless determined in writing by APRA, a conglomerate group must be headed by an ADI or an authorised non‑operating holding company (authorised NOHC) and may include non-financial (commercial) as well as financial entities (regulated and unregulated). A reference to a regulated entity in a conglomerate group refers to any entity directly regulated by APRA or by an equivalent banking or insurance prudential regulator overseas.
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A foreign-owned locally incorporated ADI and its subsidiaries will constitute a conglomerate group for the purposes of this Prudential Standard. However, where a foreign-owned ADI has a locally incorporated NOHC parent, the conglomerate group will comprise the locally incorporated NOHC (even if it is not an authorised 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 will 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, if requested by APRA, to provide APRA with information concerning activities of its subsidiaries outside the Australian conglomerate group.