Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p49
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 124407–127061

issuer, where the holding company does not undertake the role of the issuer of the instrument. This includes situations where a future holding company may be substituted as the issuer of ordinary shares on conversion, but not substituted as the issuer of the instrument. ↑
28. Any reference to Common Equity Tier 1 Capital instruments in this paragraph includes a reference to mutual equity interests issued in accordance with Attachment G. ↑
29. Conversion must be into the ordinary shares of the insurer or its parent, which must be listed at the time of issue. For an unlisted insurer 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 insurer. Where an unlisted insurer issues the instrument to its listed parent, conversion may be into unlisted ordinary shares of the insurer. ↑
30. Reference to regulated institution captures any entity whose ordinary shares are issued as a result of conversion provisions. ↑
31. For an unlisted regulated institution that has no listed parent at the time of issue, the ordinary share price is based on the book value per share at the time of issue. ↑
32. This may include subsequent ordinary share splits, bonus issues and share consolidations. ↑
33. For example, by way of a scheme of arrangement. ↑
34. 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. ↑
35. 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 regulated institution must not otherwise do anything to create an expectation that the call will be exercised. ↑
36. This does not preclude a parent of the regulated institution from holding the instrument where the instrument is directly issued by the regulated institution to the parent. ↑
37. Indirect exposures represent exposures that will result in a loss to the regulated institution substantially equivalent to any loss in the direct holding. ↑
38. For example, by way of a scheme of arrangement. ↑
39. Conversion must be into the ordinary shares of the insurer or its parent, which must be listed at the time of issue. For an unlisted insurer 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 insurer. Where an unlisted insurer issues the instrument to its listed parent, conversion may be into unlisted ordinary shares