Document ID: chunk:federal_register_of_legislation:F2024L01525:body:0:p8
Version: federal_register_of_legislation:F2024L01525
Segment Type: other
Provision Reference: 
Character Range: 20750–23867

of fee income not sourced from the insurer's health insurance policies provided that:
         1.           the fee income has either been received in cash or has been debited by the private health insurer to an account to be paid by the provider of the fees or otherwise forms part of the upfront fees owed to the private health insurer;
         2.           outstanding amounts of fee income debited by the private health insurer 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;
         3.           the provider of the fee income has no recourse for repayment in part or full of any prepaid income;
         4.           any fees debited by the private health insurer to the account cannot be cancelled by the provider of the fee income where the fees were to be paid upfront; and
         5.           there is no requirement for the provision of continuing additional services or products associated with the fee income concerned.
 6.          Fee income not sourced from the insurer's health insurance policies may include net positive amounts arising from the netting of deferred or future income and capitalised expenses associated with a product class (not comprising the insurer's health insurance policies) provided the conditions in paragraph 35 to this Prudential Standard are satisfied. Any deferred income or future income that do not satisfy the conditions in paragraph 35, if not already excluded from current year or retained earnings, must be deducted from Common Equity Tier 1 Capital.
 7.          Accumulated other comprehensive income and other disclosed reserves include, but are not limited to:
         1.           unrealised gains or losses recognised on the balance sheet;
         2.           reserves from equity-settled share-based payments (share or share options) granted to employees as part of their remuneration package provided that:
                 1.             the share or share options granted relate only to the ordinary shares of the private health insurer;
                 2.          the ordinary shares comprise only new ordinary shares to be issued by the private health insurer, or new ordinary shares already issued by the private health insurer to employees, or new ordinary shares already issued by the private health insurer to employees for this specific purpose; and
                 3.        there are no circumstances under which such remuneration can be converted into another form (e.g. cash).
         3.           foreign currency translation reserve;
         4.           general reserves;
         5.           cumulative unrealised gains or losses on hedges[5] 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