Document ID: chunk:federal_register_of_legislation:F2024L00884:body:0:p46
Version: federal_register_of_legislation:F2024L00884
Segment Type: other
Provision Reference: 
Character Range: 118536–121461

is as defined in subparagraph 11(c) but excludes seed capital that is a receivable from a statutory fund.
[12]  In cases where capital instruments have a permanent write-off feature, this criterion is still deemed to be met by ordinary shares.
[13]  This does not preclude the parent entity of the life company holding the instrument where the instrument is directly issued by the life company to the parent.
[14]  Indirect exposures represent exposures that will result in a loss to the life company substantially equivalent to any loss in the direct holding.
[15]  Indirect exposures represent exposures that will result in a loss to the life company substantially equivalent to any loss in the direct holding.
[16]  Excluding any deferred tax liabilities that have already been netted off elsewhere in accordance with this Prudential Standard.
[17]  Includes goodwill and intangibles attributable to investments in subsidiaries, joint ventures and associates. For the purposes of this Prudential Standard, a joint operation (as defined under Australian Accounting Standard AASB 11 Joint Arrangements) is to be treated as a joint venture.
[18]  For the purposes of this Prudential Standard, a joint operation (as defined under Australian Accounting Standard AASB 11 Joint Arrangements) is to be treated as a joint venture.
[19]  Entities that undertake business related to life insurance business include entities that provide a financing role to life insurance business, life insurance intermediaries and service companies.
[20]  For the purposes of this Prudential Standard, 'reinsurance assets' refers to reinsurance assets net of doubtful debts.
[21]  The life company's share of the regulatory capital requirements is determined by applying the ownership of the subsidiary, joint venture or associate (as relevant) to the total regulatory capital requirement of the investment.
[22]  Examples of the entities that are subject to a comparable regulatory capital requirement are authorised deposit-taking institutions, general insurers and health insurers.
[23]  'Charge' means a charge created in any way and includes a mortgage or an agreement to give or execute a charge or mortgage, whether upon demand or otherwise.
[24]  An instrument may be treated as perpetual if it will mandatorily convert to ordinary shares at a pre-defined date after five years from issue. Instruments with maturity dates and automatic roll-over features do not qualify as perpetual instruments.
[25]  Conversion from a fixed rate to a floating rate (or vice versa) in combination with a call option without any increase in the credit spread is not considered an incentive to redeem.  However, the life company must not otherwise do anything to create an expectation that the call will be exercised.
[26]  An instrument may not provide for investors upon non-payment of a distribution to convert an Additional Tier 1 Capital instrument, and