Document ID: chunk:federal_register_of_legislation:F2024L00884:body:0:p48
Version: federal_register_of_legislation:F2024L00884
Segment Type: other
Provision Reference: 
Character Range: 123689–126333

of a scheme of arrangement.
[37]  Where an instrument has a defined maturity and provides for a mandatory roll-over the maturity of the instrument is deemed to only extend to the date upon which any roll-over may take effect.
[38]  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.
[39]  This does not preclude a parent entity of the life company from holding the instrument where the instrument is directly issued by the life company to the parent entity.
[40]  Indirect exposures represent exposures that will result in a loss to the life company substantially equivalent to any loss in the direct holding.
[41]  For example, by way of a scheme of arrangement.
[42]  Conversion must be into the ordinary shares of the life company or its parent entity, which must be listed at the time of issue. For an unlisted life company with no listed upstream entity at the time the instrument is issued, the instrument is to be converted into unlisted ordinary shares of the life company. Where an unlisted life company issues the instrument to its listed parent entity, conversion may be into unlisted ordinary shares of the life company.
[43]  Reference to life company in this context captures any entity whose ordinary shares are issued as a result of conversion provisions.
[44]  For an unlisted life company that has no listed parent entity at the time of issue, the ordinary share price is based on the book value per share at the time of issue.
[45]  For example, by way of a scheme of arrangement.
[46]  Requirements may be applied by the home regulator or under statute.
[47]  Such a declaration would typically be provided, as appropriate, by APRA or another regulator, or by way of statutory provisions.
[48]  Available at https://www.rba.gov.au/statistics/tables/
[49]  For friendly societies, replace the reference to PRP in this subparagraph with 'unallocated surplus that must be used for benefit enhancement under the approved benefit fund rules'.
[50] For friendly societies, the policy liabilities referred to in this paragraph must include unallocated surpluses held within approved benefit funds if those surpluses must be used for benefit enhancement under the approved benefit fund rules.
[51]  'Financial year' means a period of 12 consecutive months covered by one or more sets of publicly available operating results preceding the date of the proposed payments of distributions.