Definitions

11. The following definitions are used in this Prudential Standard:

(a) critical function – means any function provided by an APRA-regulated entity that is important to financial system stability or the availability of essential financial services to a particular industry or community;

(b) non-significant financial institution (non-SFI) – means, in relation to RSE licensees, an RSE licensee that is not a significant financial institution;[5]

(c) resolution – means the process by which APRA or other relevant persons manage or respond to an APRA-regulated entity:

(i) being unable to meet its obligations; or

(ii) being considered likely to be unable, or being considered likely to become unable, to meet its obligations; or

(iii) suspending payment, or being considered likely to suspend payment;

including through the exercise of powers and functions under prudential standards or any other law;

(d) resolution option – means a strategy that APRA may use to effect a resolution;

(e) resolution plan – means a plan developed by APRA under paragraph 13 of this Prudential Standard; and

(f) significant financial institution (SFI) – means, in relation to RSE licensees, an RSE licensee that either:

(i) has total assets in excess of AUD $30 billion in the case of a single RSE operated by an RSE licensee, or if the RSE licensee operates more than one RSE, where the combined total assets of all RSEs exceed this amount; or

(ii) is determined as such by APRA, having regard to matters such as complexity in its operations or its membership of a group.[6]