Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p14
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 33608–36406

2. Where issue documentation, 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 regulated institution's Common Equity Tier 1 Capital.
 3. Where an instrument, whether issued by the regulated institution or another member of the Level 2 insurance group to which the regulated institution belongs is subject to the laws of a foreign jurisdiction, the regulated institution must also ensure that the instrument satisfies all relevant qualifying criteria for Common Equity Tier 1 Capital under this Attachment and the laws of the foreign country do not override the provisions within the instrument designed to meet these criteria.
 4. APRA may require the regulated institution to provide an independent expert opinion, addressed to APRA by a firm or practitioner of APRA's choice and at the expense of the regulated institution, confirming that the instrument meets all or any criteria applied to Common Equity Tier 1 Capital instruments in this Prudential Standard.
 5. For the purposes of Attachment G to this Prudential Standard, a reference in this Attachment (except in paragraphs 1(b), 1(c), 1(e), 1(g), and 1(h) of this Attachment) to 'paid up ordinary shares' is to be read as a reference to 'paid up mutual equity interests'.

Attachment B – Regulatory adjustments

General rules for regulatory adjustments
 1. In determining the size of regulatory adjustments (i.e. deductions) from a category of a regulated institution's capital base, items must be valued on the same basis as a regulated institution's accounts prepared in accordance with the Financial Sector (Collection of Data) Act 2001.
 2. For the purposes of deductions to Additional Tier 1 Capital and Tier 2 Capital:
 3. where the amount of Additional Tier 1 Capital is insufficient to cover the amount of deductions required to be made from this category of capital, the shortfall must be deducted from Common Equity Tier 1 Capital; and
 4. where the amount of Tier 2 Capital is insufficient to cover the amount of deductions required to be made from this category of capital, the shortfall must be deducted from Additional Tier 1 Capital and, if Additional Tier 1 Capital is insufficient to cover the amount of the deductions required, the remaining amount must be deducted from Common Equity Tier 1 Capital.
 5. Where a capital instrument is required to be deducted and it is not possible to determine whether it should be deducted from Common Equity Tier 1 Capital, Additional Tier 1 Capital or Tier 2 Capital, the deduction must be made from Common Equity Tier 1 Capital. A regulated institution must consult APRA if there is