Use of ORFR financial resources

1. An RSE licensee must only use ORFR financial resources for one or more of the following:
   1. to address operational risks that could reasonably be considered to have caused or could cause one or more beneficiaries in an RSE within the RSE licensee’s business operations to sustain a loss, or to be deprived of a gain to which they otherwise would have been entitled;
   2. to meet the requirements of Prudential Standard CPS 230 Operational Risk Management for the effective management and prevention of operational risk incidents, including the remediation of identified material weaknesses and maintenance of critical operations within tolerance levels through severe disruption; and
   3. to reduce a surplus where ORFR financial resources are materially larger than the ORFR target amount.