Document ID: chunk:federal_register_of_legislation:F2022L01566:body:0:p8
Version: federal_register_of_legislation:F2022L01566
Segment Type: other
Provision Reference: 
Character Range: 18756–20003

cover pool for which the ADI is the issuing ADI and which is included in A; and

          E   = to the extent of any double‑counting, the value of other assets that are effectively double counted when calculating A and not captured by B, C or D.[5]

[1] A reference to a Reporting Standard includes any reporting form and instructions that form part of the Reporting Standard.
[2] Refer to subsection 11AF(2) of the Banking Act.
[3] Paragraph 30(4)(a) of the Banking Act also requires the keeping of an accurate register of assets in the cover pool by the issuing ADI or covered bond special purpose vehicle concerned.
[4] If an asset is not part of the cover pool and is not listed on a register pursuant to paragraph 18, then it will fail the test in paragraph 28(a) and will be subject to the minimum risk-weight of 100 per cent in paragraph 30.
[5] Whether double-counting exists should be assessed having regard to the economic substance of the relevant transactions. One situation where double counting would arise is if the amount A includes both assets held by a covered bond, securitisation or other special purpose vehicle and a loan to the special purpose vehicle to fund the purchase of those assets by the special purpose vehicle.