Document ID: chunk:federal_register_of_legislation:F2022L01562:body:0:p20
Version: federal_register_of_legislation:F2022L01562
Segment Type: other
Provision Reference: 
Character Range: 51885–54596

of the Level 2 group to which the ADI belongs, is subject to the laws of a foreign jurisdiction, the ADI must also ensure that the instrument satisfies all relevant qualifying criteria for Common Equity Tier 1 Capital under this Attachment and the laws of the foreign country do not override the provisions within the instrument designed to meet these criteria.
4.             APRA may require the ADI to provide an independent expert opinion, addressed to APRA by a firm or practitioner of APRA's choice and at the expense of the ADI, confirming that the instrument meets all or any of the criteria applied to Common Equity Tier 1 Capital instruments in this Prudential Standard.
5.             For the purposes of Attachment I to this Prudential Standard, a reference in this Attachment (except in paragraphs 1(b), 1(c), 1(e), 1(g) and 1(h) of this Attachment) to 'paid up ordinary shares' is to be read as a reference to 'paid up mutual equity interests'.

Attachment C -       Minority interest and other capital issued out of fully consolidated subsidiaries and is held by third parties
     1. The requirements in this Attachment do not apply on a Level 2 basis to capital instruments issued by an ADI that is a subsidiary of a NOHC which heads the Level 2 group, where the NOHC owns 100 per cent of, and has a sole direct investment in, the ADI. Where the NOHC holds investments in other entities (whether in the Level 2 group or a wider group), the capital instruments issued by the ADI subsidiary to third parties are subject, at Level 2, to the provisions of this Attachment.
     2. Common Equity Tier 1 Capital, Additional Tier 1 Capital and Tier 2 Capital issued to third parties by fully consolidated subsidiaries in a Level 2 group may be included in the appropriate category of Regulatory Capital at Level 2 to the extent set out in this Attachment and paragraphs 31(f), 40(b) and 42(b) of this Prudential Standard.
     3. Where a fully consolidated subsidiary in a Level 2 group has its own subsidiaries, all calculations of eligible Regulatory Capital attributable to third parties must be undertaken in respect of that subsidiary and its subsidiaries as a consolidated group.
     4. An ADI may elect not to recognise, at Level 2, capital issued by a fully consolidated subsidiary that is attributable to third parties. However, the ADI must continue to include all exposures of those subsidiaries when calculating its total risk-weighted assets for Level 2 capital adequacy purposes.
     5. The amount that may be included in the relevant category of Regulatory Capital at Level 2 is:
(a)          the total amount of the category of Regulatory Capital attributable to third parties; less