Document ID: chunk:federal_register_of_legislation:F2024L00884:body:0:p20
Version: federal_register_of_legislation:F2024L00884
Segment Type: other
Provision Reference: 
Character Range: 50394–53197

between fair value and the reported value of each asset. This deduction can be a negative amount (that is, an addition to Common Equity Tier 1 Capital) if fair value exceeds reported value.
29.         A life company must make any other deduction required by APRA in writing where APRA considers that fair values are not prudent or reliable.

Other adjustments
30.         A life company must make any other deductions required under any other Prudential Standard.

Regulatory adjustments to the net assets of a statutory fund or general fund
31.         The amount of net assets to be included in the capital base of a statutory fund or general fund of a life company must be calculated after making the following deductions:
(a)          all regulatory adjustments to Common Equity Tier 1 Capital required under this Attachment; and
(b)          for a friendly society management fund, seed capital that is a receivable from an approved benefit fund.
32.         In determining the deduction for deferred tax assets net of deferred tax liabilities, a life company may assume that tax benefits in one fund can be offset against deferred tax liabilities in another statutory fund or the general fund, subject to the offset only being used once in the calculation of the capital base for both funds.
33.         For a friendly society approved benefit fund, 'seed capital' may be added to the net assets of the fund.

Attachment C - Criteria for inclusion in Additional Tier 1 Capital
     1. To be classified as Additional Tier 1 Capital, an instrument must satisfy all the criteria in this Attachment.
2.             The instrument must be paid-up and the amount must be, irrevocably received by the issuer.
3.             The instrument represents, prior to any conversion to Common Equity Tier 1 Capital (refer to Attachment E), the most subordinated claim in liquidation of the issuer after Common Equity Tier 1 Capital instruments.
4.             The paid-up amount of the instrument, or any future payments related to the instrument, is neither secured nor covered by a guarantee of the issuer or related entity, or other arrangement that legally or economically enhances the seniority of the holder's claim. The instrument may not be secured or otherwise subject to netting or offset claims on behalf of the holder or the issuer of the instrument.
5.             The principal amount of the instrument is perpetual (i.e. it has no maturity date).[24]
6.             The instrument contains no step-ups or other incentives to redeem. The issuer and any related entity of the life company must not create an expectation at issuance that the instrument will be bought back, redeemed or cancelled. The contractual terms of the instrument must not provide any feature that might give rise to such an