Document ID: chunk:federal_register_of_legislation:F2023L00684:body:0:p37
Version: federal_register_of_legislation:F2023L00684
Segment Type: other
Provision Reference: 
Character Range: 93127–96023

at the time the instrument is issued. For an unlisted regulated institution 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 regulated institution. Where an unlisted regulated institution issues the instrument to its listed parent, conversion may be into the unlisted ordinary shares of the regulated institution;
 3. converted into mutual equity interests; or
 4. written off.
 5. A non-viability event is:
 6. in relation to a regulated institution when APRA notifies the regulated institution that APRA considers;
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         1. conversion or write-off of capital instruments is necessary because, without it, the regulated institution would become non-viable; or
         2. without a public sector injection of capital or equivalent support, the regulated institution would become non-viable;
 7. subject to paragraph 6 of this Attachment, in relation to a fully-consolidated subsidiary in the Level 2 insurance group:
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         1. a non-viability event in relation to its parent regulated institution under this Attachment; or
         2. the application of non-viability requirements imposed by a host regulator of the subsidiary or under statute; and
 8. subject to paragraphs 7 and 8 of this Attachment, where the regulated institution is a locally-incorporated regulated institution that is a subsidiary of a foreign entity, notification by the home regulator of the foreign entity to the foreign entity or the regulated institution that the home regulator considers that:
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         1. conversion or write-off of capital instruments is necessary because, without it, the foreign entity or the regulated institution would become non-viable; or
         2. without a public sector injection of capital, or equivalent support, the foreign entity or the regulated institution would become non-viable.
 9. Conversion or write-off of an Additional Tier 1 or Tier 2 Capital instrument must generate an unequivocal addition to the regulated institution's Level 1 or Level 2 Common Equity Tier 1 Capital under Australian Accounting Standards.
10. For the purposes of conversion or write-off, in whole or in part, of an Additional Tier 1 Capital or Tier 2 Capital instrument as a result of a non-viability event, the amount to be converted must be the face value of the instrument or relevant part thereof. Dividends and interest associated with the instrument which have been converted or written off, but which are not yet due and payable must also be extinguished.
11. In order to comply with the immediate conversion or write-off in paragraph 1 to this Attachment, the instrument must be capable of conversion or write-off taking place at any time of day:
12. during a business day; or
13. on a day that is not a business day.
14. To qualify as Additional Tier 1 Capital or Tier