Life Insurance (prudential standard) determination No. 1 of 2009 - Prudential Standard LPS 510 - Governance
Remuneration PolicyRemuneration Policy
Start here
Get a plain-English read of Remuneration Policy
Turn the raw legal text into a practical explanation grounded in Life Insurance (prudential standard) determination No. 1 of 2009 - Prudential Standard LPS 510 - Governance.
Remuneration Policy
-
A life company (including an EFLIC) must establish and maintain a written Remuneration Policy. The Remuneration Policy must outline the remuneration objectives and the structure of the remuneration arrangements, including but not limited to the performance-based remuneration components, of the life company.
-
The Remuneration Policy must be approved by the Board or, for an EFLIC, by the Compliance Committee with delegated authority from the Board.
-
For the purposes of this Prudential Standard, remuneration arrangements include measures of performance, the mix of forms of remuneration (such as fixed and variable components, and cash and equity-related benefits) and the timing of eligibility to receive payments. All forms of remuneration are captured by this Prudential Standard.
-
In addition to any other objectives, the Remuneration Policy’s performance-based components of remuneration must be designed to encourage behaviour that supports: