Regulatory AlertsPrudential Standard 3PS 222 Intra-group Transactions and Exposures
The Australian Prudential Regulation Authority issued Prudential Standard 3PS 222 to require Level 3 heads to monitor and control risks arising from intra-group transactions and exposures. Level 3 heads must establish and maintain an intra-group transactions and exposures policy that includes systems for identifying, measuring, and managing these risks, with ultimate responsibility resting with the Board. The standard mandates specific governance procedures, stress testing, reporting obligations to APRA, and limits on non-arms-length dealings to ensure the financial stability of regulated institutions within the group.
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