Document ID: chunk:federal_register_of_legislation:F2024L01525:body:0:p28
Version: federal_register_of_legislation:F2024L01525
Segment Type: other
Provision Reference: 
Character Range: 75346–78333

other capital instrument of the issuer of an Additional Tier 1 Capital instrument must not include any of the following clauses:
         1.           a cross-default clause linking the issuer's obligations under the Additional Tier 1 Capital instrument to default by the issuer under any of its other obligations, or default by another party (related or otherwise) under the debt or other capital instrument; or
         2.           an event of clause specifying an event relating to the Additional Tier 1 Capital instrument that brings the issuer into default under the debt or other capital instrument.
16.          For the purposes of paragraph 36(b) of this Attachment, an event of default clause includes a clause specifying any of the following events:
         1.           the exercise or non-exercise of discretions within the Additional Tier 1 Capital instrument;
         2.           an adverse event or change, however so described or determined, occurring in respect of the Additional Tier 1 Capital instrument; or
         3.           any consequence arising from, or any action taken to prevent,[34] the above events or a default by the issuer under the Additional Tier 1 Capital instrument,
    but does not include a clause specifying the irrevocable winding-up (that is, either by or an effective resolution by shareholders or members for winding-up, or a court order has been made, and the time for the appeal of the decision has passed) of the issuer.
 1.          Where issue documentation, or marketing of an instrument, or any ongoing dealings with investors in the instrument suggest the instrument has attributes not consistent with the eligibility requirements in this Attachment, the instrument will be ineligible to be included in the private health insurer's Additional Tier 1 Capital.
 2.          The instrument may be subject to the laws of a foreign country jurisdiction, except that the terms and conditions of the instrument that relate to non-viability conversion or write-off must be subject to the laws of an Australian jurisdiction.
 3.          Where the instrument is subject to the laws of a foreign country, the private health insurer must also ensure that the instrument satisfies all relevant eligibility criteria applicable to the instrument under this Attachment are enforceable under the laws of that jurisdiction.
 4.          APRA may require the private health insurer to provide an independent expert opinion, addressed to APRA by a firm or practitioner of APRA's choice and at the private health insurer's expense, confirming that the instrument satisfies all applicable criteria for an Additional Tier 1 Capital instrument under this Prudential Standard.

Attachment D – Criteria for inclusion in Tier 2 Capital
 1.              To be classified as Tier 2 Capital, an instrument must satisfy all of the criteria in this Attachment.
 1.              The instrument must clearly indicate that it is subordinate to the interests of