Document ID: chunk:federal_register_of_legislation:F2022L01566:body:0:p7
Version: federal_register_of_legislation:F2022L01566
Segment Type: other
Provision Reference: 
Character Range: 16371–18980

issue of a covered bond, a written declaration signed by a responsible person of the ADI certifying that at the time of issue of the covered bond, the combined value of assets in cover pools securing covered bonds issued by the ADI, including the issue undertaken, do not exceed 8 per cent of the value of the ADI's assets in Australia (or such other percentage as may be prescribed in regulations pursuant to section 28 of the Banking Act).

    40.         An issuing ADI must provide APRA with a copy of all documentation relating to the issue of covered bonds on request.

    41.         An issuing ADI must notify APRA in writing, as soon as practicable after it becomes aware that the value of assets in cover pools securing covered bonds issued by the ADI exceeds, or will exceed, 8 per cent of the value of the ADI's assets in Australia (or such other percentage as may be prescribed in regulations pursuant to section 28 of the Banking Act). Such notification must include the value of the assets in the cover pool, the amount in excess of the specified percentage, reasons for the excess and an indication of the ADI's plans and a proposed time frame in which assets held in the cover pool may fall below the specified percentage.

Assets in Australia

    42.         For the purposes of this Prudential Standard, an issuing ADI's assets in Australia (AIA) should be calculated as the ADI's total assets on its domestic books as reported on forms ARF 720.0A ABS/RBA Statement of Financial Position (Standard) (ARF 720.0A) or  ARF 720.0B ABS/RBA Statement of Financial Position (Reduced) (ARF 720.0B) under Reporting Standard 720.0 ABS/RBA Statement of Financial Position, adjusted to exclude goodwill, assets in cover pools (and any related loans to a covered bond special purpose vehicle) and double‑counting. That is:

              AIA = A – B – C – D – E

    where:

          A   = Total resident assets on the ADI's domestic books as reported on ARF 720.0A or ARF 720.0B;

          B   = the value of any goodwill included in A (item 9.3 on ARF 720.0A or ARF 720.0B);

          C   = the value of any interest in assets (or part of assets) in a cover pool for which the ADI is the issuing ADI and which is included in A;

          D   = the value of any loan to a covered bond special purpose vehicle that relates to an asset (or part of an asset) in a cover pool for which the ADI is the issuing ADI and which is included in A; and

          E   = to the extent of any double‑counting, the value of other assets that are effectively double counted when calculating A and not