Insurance (prudential standard) determination No. 7 of 2008 - Prudential Standard GPS 120 Assets in Australia
Minimum Capital Requirement for CategoryMinimum Capital Requirement for Category C insurers
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Minimum Capital Requirement for Category C insurers
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As noted in Prudential Standard GPS 110 Capital Adequacy, Category C insurers do not typically have capital instruments of the type specified in GPS 112. Category C insurers are nevertheless required to meet a variant of the Minimum Capital Requirement (MCR). Specifically, Category C insurers are required to maintain assets in Australia, which exceed their liabilities in Australia (less technical provisions in excess of those required by GPS 310) by an amount that is greater than their MCR.
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An asset will not be counted as an asset in Australia for the purposes of paragraph 33 if this Prudential Standard excludes it from being an asset in Australia for the purposes of paragraph 28(a) of the Act, or it is not otherwise an asset in Australia within the meaning of paragraph 28(a) of the Act.
Provisions applying to all insurers