Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p8
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 18138–21023

to the account are claimable in full in the event of default on the amounts receivable or capable of being sold to a third party as part of outstanding debts;
22. the provider of the fee income has no recourse for repayment in part or full of any prepaid income;
23. the fees debited by the general insurer to the account cannot be cancelled by the provider of the fee income where the fees were obliged to be paid upfront; and
24. there is no requirement for the provision of continuing additional services or products associated with the fee income concerned.
25. Fee income not sourced from insurance policies (issued by general insurers and Lloyds) may include net positive amounts arising from the netting of deferred or future income and capitalised expenses associated with a product class not compromising insurance policies (issued by general insurers and Lloyds) provided the conditions in paragraph 34 of this Prudential Standard are satisfied. Any deferred income or future income that do not satisfy the conditions in paragraph 34, if not already excluded from current year or retained earnings, must be deducted from Common Equity Tier 1 Capital.
26. Accumulated other comprehensive income and other disclosed reserves include, but are not limited to:
27. unrealised gains or losses recognised on the balance sheet;
28. reserves from equity-settled share-based payments (share or share options) granted to employees as part of their remuneration package provided that:
29. the share or share options granted relate only to the ordinary shares of the regulated institution;
30. the ordinary shares comprise only new ordinary shares to be issued by the regulated institution, or new ordinary shares to be issued by the regulated institution to employees, or new ordinary shares already issued by the regulated institution to employees for this specific purpose; and
31. there are no circumstances under which such remuneration can be converted into another form (e.g. cash).
32. foreign currency translation reserve;
33. general reserves;
34. cumulative unrealised gains or losses on hedges[6] offsetting gains or losses included in Common Equity Tier 1 Capital (such as movements in the currency value of foreign currency-denominated hedging instruments that offset movements in foreign-currency-denominated items recognised in the foreign currency translation reserve). This includes fair value gains or losses on derivatives representing effective economic hedges of assets; and
35. any other gains and losses in accumulated other comprehensive income and other disclosed reserves that may be specified by APRA in writing.
For the purposes of paragraph 36(b) any other reserves associated with share- based payments must be excluded from the capital base.
 1. Revaluation of property holdings on the balance sheet may be included as part of other disclosed reserves only