Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p22
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 54747–57706

amount as the original issue, unless otherwise approved by APRA.
15. The rate of dividend or interest on the instrument, or the formulae for calculating dividend or interest payments, must be predetermined and set out in the issue documentation.
16. The instrument includes provisions which comply with the loss absorption requirements at the point of non-viability as required by Attachment E to this Prudential Standard.
17. The instrument is clearly and separately disclosed in the issuer's financial statements and, for a Level 2 insurance group, in any consolidated financial statements.
18. The instrument must not include the following clauses:
     1. a cross-default clause linking the issuer's obligations under any debt instrument or other capital instrument to default by the issuer, or default by another party (related or otherwise), under the instrument itself; or
     2. an event of default clause specifying an event relating to any debt instrument or other capital instrument of the issuer, that brings the issuer into default under the instrument itself.
For the purposes of paragraph 18(b) an event of default clause includes a clause specifying the following events:
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                 1. the exercise or non-exercise of discretions within the debt instrument or other capital instrument;
                 2. the adverse event or change, however so described or determined, occurring in respect of the debt instrument or other capital instrument; and
                 3. any consequence arising from, or any action taken or intended to prevent[26], the above events or default by the issuer under the debt instrument or other capital instrument,
but does not include a clause specifying the irrevocable winding-up (that is, either by way of 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. The issue documentation must clearly and prominently state:
     1. the instrument is perpetual;
     2. the instrument is unsecured;
     3. the subordinated nature of the instrument and that neither the issuer nor the holder of the instrument is allowed to exercise any contractual rights of set-off;
     4. the instrument is not subject to netting;
     5. the issuer cannot buy back, repurchase or redeem the instrument other than in terms permitted under this Prudential Standard;
     6. if relevant, the application of requirements for loss absorption at the point of non-viability under Attachment E to this Prudential Standard;
     7. the instrument is neither covered by the Financial Claims Scheme nor guaranteed by the Australian Government; and
     8. where the issuer has full discretion over the timing and amount of any distributions paid on the instrument, including not paying a distribution.
 2. For the purposes of paragraph 9 of this Attachment, failure to make