AU-2.3 AU-2.3 Condition 3: Controllers
AU-2.3.1
Licensees must satisfy the CBB that theircontrollers are suitable and pose no undue risks to the licensee.Licensees must also satisfy the CBB that theirclose links do not prevent the effective supervision of thelicensee by the CBB and otherwise pose no undue risks to thelicensee .January 2013AU-2.3.2
Chapters GR-5 and GR-6 contain the CBB's requirements and definitions regarding
controllers andclose links. January 2013AU-2.3.3
In summary,
controllers are persons who directly or indirectly are significant shareholders in alicensee , or who are otherwise able to exert significant influence on thelicensee . The CBB seeks to ensure thatcontrollers pose no significant risks to thelicensee . In general terms,controllers are assessed in terms of their financial standing, their judicial and regulatory record, and standards of business and (where relevant) personal probity.January 2013AU-2.3.4
A
licensee hasclose links with its subsidiaries, with its parent undertakings, and with subsidiaries of its parent undertakings. It also hasclose links with any entity in which thelicensee , its subsidiaries, its parent undertakings, and the subsidiaries of its parent undertakings has an equity interest of more than 20% (either in terms of capital or voting rights). The CBB seeks to ensure that these closely linked entities do not prevent adequate consolidated supervision being applied to financial entities within the group, and that other group entities do not pose any material financial, reputational or other risks to thelicensee .January 2013AU-2.3.5
In all cases, when judging applications from existing groups, the CBB will have regard to the reputation and financial standing of the group as a whole. Where relevant, the CBB will also take into account the extent and quality of supervision applied to overseas members of the group and take into account any information provided by other supervisors in relation to any member of the group.
January 2013