ApplicationApplication

Application

1. This Prudential Standard applies to all authorised deposit-taking institutions (ADIs), with the exception of:

   1. foreign ADIs;
   2. purchased payment facility providers; and
   3. ADIs that:

2. do not conduct trading book activity and do not have any foreign exchange or commodity positions; and

3. have included a statement to this effect in the risk management strategy required by Prudential Standard CPS 220 Risk Management (CPS 220); and that statement also outlines the arrangements in place to ensure that trading book activity does not take place.

4. A reference to an ADI in this Prudential Standard shall be taken as a reference to:

   1. an ADI on a Level 1 basis; and
   2. a group of which an ADI is a member on a Level 2 basis.

5. If an ADI to which the Prudential Standard applies is:

   1. the holding company for a group of bodies corporate, the ADI must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable; or
   2. a subsidiary of an authorised non-operating holding company (authorised NOHC), the authorised NOHC must ensure that the requirements in this Prudential Standard are met on a Level 2 basis, where applicable.