Document ID: chunk:federal_register_of_legislation:F2024L00884:body:0:p37
Version: federal_register_of_legislation:F2024L00884
Segment Type: other
Provision Reference: 
Character Range: 94643–97560

subject to the laws of a foreign country, the life company must also ensure all relevant eligibility criteria applicable to the instrument under this Attachment is enforceable under the laws of that jurisdiction.
42.         APRA may require the life company to provide an independent expert opinion, addressed to APRA by a firm or practitioner of APRA's choice and at the life company's expense, confirming that the instrument meets the requirements of this Prudential Standard.

Attachment E - Loss absorption at the point of non-viability: Additional Tier 1 and Tier 2 Capital instruments
     1. An Additional Tier 1 Capital or Tier 2 Capital instrument must include a provision whereby upon the earliest occurrence of a non-viability trigger event, it will be immediately and irrevocably:
(a)          converted into the ordinary shares of the life company or its ultimate parent entity, which must be listed at the time the instrument is issued. For an unlisted life company with no listed upstream entity at the time the instrument is issued, the instrument is to be converted into the unlisted ordinary shares of the life company. Where an unlisted life company issues the instrument to its listed parent entity, conversion may be into the unlisted ordinary shares of the life company;
(b)          converted into mutual equity interests; or
(c)          written off.
2.             A non-viability event is:
(a)          in relation to a life company when APRA notifies the life company that APRA considers;
(i)            conversion or write-off of capital instruments is necessary because, without it, a particular fund or the life company would become non-viable; or
(ii)         without a public sector injection of capital or equivalent support, a particular fund or the life company would become non-viable;
(b)          subject to paragraphs 6 and 7 of this Attachment, where the life company is a locally-incorporated subsidiary life company of a foreign entity, notification by the home regulator of the foreign entity to the foreign entity or the life company that the home regulator considers that:
(i)            conversion or write-off of capital instruments is necessary because, without it, the foreign entity or the life company would become non-viable; or
(ii)         without a public sector injection of capital, or equivalent support, the foreign entity or the life company would become non-viable.
3.             Conversion or write-off of an Additional Tier 1 or Tier 2 Capital instrument must generate an unequivocal addition to the life company's Common Equity Tier 1 Capital (for Additional Tier 1 and Tier 2 Capital instruments) and the net assets of the relevant statutory fund (for Tier 2 Capital instruments) under Australian Accounting Standards.
4.             For the purposes of conversion or write-off, in whole or in part, of an Additional Tier 1 Capital or Tier 2 Capital