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 thelicensee .Licensees must also satisfy the CBB that theirclose links does not prevent the effective supervision of thelicensee by the CBB and otherwise pose no undue risks to thelicensee .January 2014AU-2.3.2
Chapter GR-4 contains the CBB's requirements and definitions regarding
controllers .January 2014AU-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 2014AU-2.3.4
As regards group structures, the CBB seeks to ensure that these 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 the
licensee .January 2014AU-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 2014