Document ID: chunk:federal_register_of_legislation:F2023L00673:body:0:p9
Version: federal_register_of_legislation:F2023L00673
Segment Type: other
Provision Reference: 
Character Range: 21557–24512

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 of the life company derived from the items (a) to (f);
(h)          the prescribed capital amount; and
(i)            the capital adequacy multiple (item (g) divided by item (h)).
45.         A life company must also publish, at least annually, the following items for each of its funds:
(a)          the amount of the fund's 'net assets', after applying any regulatory adjustments;
(b)          the aggregate amount of any regulatory adjustments applied to the fund's net assets;
(c)          the amount of Tier 2 Capital held by the fund;
(d)          the aggregate amount of any regulatory adjustments applied in the calculation of the fund's Tier 2 Capital;
(e)          the total capital base of the fund derived from the items (a) to (d);
(f)           the fund's prescribed capital amount;
(g)          the components of the fund's prescribed capital amount[3] specified in paragraph 29[4]; and
(h)          the capital adequacy multiple of the fund (item (e) divided by item (f)).
46.         A life company must publish the information specified in paragraphs 44 and 45 so that it is readily accessible to both policy owners and other market participants.
47.         A life company must not disclose any supervisory adjustment determined by APRA in accordance with paragraph 43.

Reductions in capital base
48.         A life company must obtain APRA's written approval prior to making any planned reduction in the capital base of the company.
49.         A reduction in a life company's capital base includes[5]:
(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 company;
(b)          trading in the life company's own shares or capital instruments outside of any arrangement agreed upon with APRA in accordance with LPS 112; and
(c)          the aggregate amount of dividend payments on ordinary shares that exceeds a life company's after-tax earnings (as reported to APRA in the life company's statutory accounts) after taking into account any payments on more senior capital instruments, in the financial year[6] to which they relate.
50.         A life company proposing a capital reduction must provide APRA with a forecast showing the projected future capital position (including PCR) after the proposed capital reductions. The forecast should extend for at least two years.
51.         A life company must satisfy APRA that its capital base will remain adequate for its future needs