Latest Products

APRA FAQs for Capital Adequacy

Monday 25 September 2017


The Australian Prudential and Regulation Authority (APRA) has published a list of frequently asked questions (FAQs) about capital adequacy.

The regulator is careful to point out that the FAQs are not an exhaustive list of examples and if the regulated entities have any questions they are encouraged to contact APRA directly.

The FAQs are divided into 11 sections:

  • Section 1: Information relevant for APRA’s assessment of the eligibility of capital instruments

 

  • Section 2: Minority Interests

 

  • Section 3: Conversion requirements for Additional Tier 1 and Tier 2 Capital instruments

 

  • Section 4: Cross-default provisions in relation to Additional Tier 1 and Tier 2 Capital instruments

 

  • Section 5: Incentives to redeem Additional Tier 1 and Tier 2 Capital instruments

 

  • Section 6: Optional Redemption of Additional Tier 1 and Tier 2 Capital instruments

 

  • Section 7: Distributions on Additional Tier 1 Capital instruments

 

  • Section 8: Marketing of Additional Tier 1 and Tier 2 Capital instruments

 

  • Section 9: Use of laws of a foreign jurisdiction in Additional Tier 1 and Tier 2 Capital instruments

 

  • Section 10: Default and Winding-up in relation to Tier 2 Capital instruments

 

  • Section 11: Mutual Equity Interests