Insurance (prudential standard) determination No. 16 of 2008 - Prudential Standard GPS 221 - Risk Management: Level 2 Insurance Groups
Transition, adjustments and exclusionsTransition, adjustments and exclusions
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Transition, adjustments and exclusions
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APRA may grant a period of transition to a Level 2 insurance group by determining a later effective date for this Prudential Standard for the group where the parent entity has applied for such transitional relief. The effective date determined by APRA will be no later than 31 December 2009.
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Where a Level 2 insurance group contains an entity that meets the controlled entity definition over which the parent entity cannot exercise operational or financial control, APRA may adjust or exclude a specific prudential requirement in this Prudential Standard that would otherwise apply in relation to that specific entity within the Level 2 insurance group. The parent entity must apply for such a determination. The application must demonstrate that the Level 2 insurance group does not control the internal operations of an entity and also indicate how it has addressed this situation in its risk management framework.
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On the application of a Level 2 insurance group, APRA may by notice in writing to the parent entity of the Level 2 insurance group adjust or exclude a specific prudential requirement in this Prudential Standard in relation to that Level 2 insurance group.