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Banking (prudential standard) determination No. 11 of 2022
Assets in the cover poolAssets in the cover pool
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Assets in the cover pool
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An issuing ADI must deduct from Common Equity Tier 1 Capital the aggregate amount of assets in cover pools that do not qualify for treatment as assets of the ADI in accordance with section 31D of the Banking Act.
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When applying Prudential Standards, assets in cover pools that qualify for treatment as assets of the issuing ADI in accordance with section 31D of the Banking Act will be treated as if they were held directly by the ADI, without reference to the interposed structures.