Document ID: chunk:federal_register_of_legislation:F2024L01525:body:0:p46
Version: federal_register_of_legislation:F2024L01525
Segment Type: other
Provision Reference: 
Character Range: 123691–126450

on conversion, but not substituted as the issuer of the instrument.
[29]  Any reference to Common Equity Tier 1 Capital instruments in this paragraph includes a reference to mutual equity interests issued in accordance with Attachment F.
[30]  Conversion must be into the ordinary shares of the private health insurer or its parent entity, which must be listed at the time of issue. For an unlisted private health insurer with no listed upstream entity at the time the instrument is issued, the instrument is to be converted into unlisted ordinary shares of the private health insurer. Where an unlisted private health insurer issues the instrument to its listed parent entity, conversion may be into unlisted ordinary shares of the private health insurer.
[31]  Reference to private health insurer captures any entity whose ordinary shares are issued as a result of conversion provisions.
[32]  For an unlisted private health insurer 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.
[33]        This may include subsequent ordinary share splits, bonus issues and share consolidations.
[34]  For example, by way of scheme of arrangement.
[35]        Where an instrument has a defined maturity and provides for a mandatory roll-over the maturity of the instrument is deemed only to extend to the date upon which any roll-over may take effect.
[36]  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 private health insurer must not otherwise do anything to create an expectation that the call will be exercised.
[37]  This does not preclude a parent entity of the private health insurer from holding the instrument where the instrument is directly issued by the private health insurer to the parent entity.
[38]  Indirect exposures represent exposures that will result in a loss to the private health insurer substantially equivalent to any loss in the direct holding.
[39]         For example, by way of a scheme of arrangement.
[40]  Conversion must be into the ordinary shares of the private health insurer or its parent entity, which must be listed at the time of issue. For an unlisted private health insurer with no listed upstream entity at the time the instrument is issued, the instrument is to be converted into unlisted ordinary shares of the private health insurer. Where an unlisted private health insurer issues the instrument to its listed parent entity, conversion may be into unlisted ordinary shares of the private health insurer.
[41]  Reference to private health insurer in this context captures any entity