prudential context

5in relation to activities carried on by a firm, the context in which the activities have, or might reasonably be regarded as likely to have, a negative effect on:

1. (a) confidence inthe financial system; or
2. (b) the ability of the firm to meet either:
   1. (i) the "fit and proper" test in threshold condition 5 (Suitability); or
   2. (ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.