Document ID: chunk:federal_register_of_legislation:F2023L00682:body:0:p9
Version: federal_register_of_legislation:F2023L00682
Segment Type: other
Provision Reference: 
Character Range: 22551–25691

than the PCR determined by this Prudential Standard.
37.         The Category C insurer must ensure that, at all times, 120 per cent of the net assets in Australia of the Category C insurer is greater than the PCR determined by this Prudential Standard.[5]
38.         References to the capital base of a regulated institution elsewhere in this Prudential Standard are, where they are being applied to a Category C insurer, to be read as referring to 'adjusted net assets in Australia' of that insurer.
39.         For further detail regarding the treatment of Category C insurers, refer to Prudential Standard GPS 120 Assets in Australia.

Disclosure

40.         To improve the understanding of its capital adequacy position by policyholders and other market participants, a regulated institution must publish, at least annually, the following items:
       (a)          the amount of Common Equity Tier 1 Capital;
       (b)          the aggregate amount of any regulatory adjustments applied in the calculation of Common Equity Tier 1 Capital;
       (c)          the amount of Additional Tier 1 Capital;
       (d)          the aggregate amount of any regulatory adjustments applied in the calculation of Additional Tier 1 Capital;
       (e)          the amount of Tier 2 Capital;
       (f)           the aggregate amount of any regulatory adjustments applied in the calculation of Tier 2 Capital;
       (g)          the total capital base derived from the items (a) to (f);
       (h)          the prescribed capital amount;
       (i)            the components of the prescribed capital amount[6]; and
       (j)            the capital adequacy multiple (item (g) divided by item (h)).
41.         A regulated institution must publish the information specified in paragraph 40 so that it is readily accessible to both policyholders and other market participants.
42.         A regulated institution must not disclose any supervisory adjustment determined by APRA in accordance with paragraph 35.
43.         Compliance with paragraphs 40 and 41 by Level 2 insurance groups does not replace the obligation of insurers to comply with the disclosure requirements of this Prudential Standard. However, the parent entity of the Level 2 insurance group may make the disclosures required by this Prudential Standard on behalf of each insurer within the group.

Reductions in capital base
44.         A regulated institution must obtain APRA's written approval prior to making any planned reduction in the capital base.
45.         A reduction in a regulated institution's capital base includes:
       (a)          a share buyback or the redemption, repurchase or repayment of any qualifying Common Equity Tier 1 Capital, Additional Tier 1 Capital and Tier 2 Capital instruments issued by the regulated institution;

       (b)          trading in the regulated institution's own shares or capital instruments outside of any arrangement agreed upon with APRA in accordance with GPS 112; and

       (c)          the aggregate amount of dividend payments on ordinary shares that exceeds a regulated institution's after-tax earnings (as