Federal Register of Legislation
Life Insurance (prudential standard) determination
No. 1 of 2024
Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital
Life Insurance Act 1995
I, Clare Gibney, a delegate of APRA:
(a) under subsection 230A(5) of the Life Insurance Act 1995 (the Act) REVOKE Life Insurance (prudential standard) determination No. 7 of 2023, including Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital made under that determination; and
(b) under subsection 230A(1) of the Act DETERMINE Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital, which applies to all life companies, including friendly societies.
This instrument commences on 1 October 2024. Dated: 9 July 2024
Clare Gibney Executive Director Policy and Advice Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority.
friendly society has the meaning given in section 16C of the Act.
life company has the meaning given in the Schedule to the Act.
Schedule
Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital, comprises the document commencing on the following page.
Prudential Standard LPS 112
Capital Adequacy: Measurement of Capital Objectives and key requirements of this Prudential Standard This Prudential Standard sets out the characteristics that an instrument must have to qualify for inclusion in the capital base of a life company and the various regulatory adjustments to be made to determine the capital base for each statutory fund, the general fund and the life company as a whole. The ultimate responsibility for ensuring that the capital base of a life company and the capital bases of all of its funds meet the requirements of this Prudential Standard rests with its Board of directors. The key requirements of this Prudential Standard are that a life company must: * comply with minimum requirements regarding the size and composition of the capital base for the life company as a whole and for each of its funds; * include in the appropriate category of capital (i.e. Common Equity Tier 1 Capital, Additional Tier 1 Capital or Tier 2 Capital) only those capital instruments that meet the detailed criteria for that category; * ensure all capital instruments are capable of bearing loss; and * make certain regulatory adjustments to capital, mainly from Common Equity Tier 1 Capital, to determine the capital base.
We try to embed the page this law was scraped from. If the site blocks framing, you still get the link and a local excerpt.
Last checked with source on —
Checking whether the official page can be embedded…
Plain-English simplify of this law: a short summary, key points, and both sides of the argument. Generated on first view via Replicate, then cached. Vote on what helps your study.
No study brief is cached for this law yet. Sign up to generate a plain-English brief.
Sign up to generate