NZ legislation to have no impact on CommBank PERLS
The recent introduction of legislation to the New Zealand Parliament proposing changes to the tax treatment of distributions paid on certain hybrid securities will not impact CommBank PERLS securities, according to the Commonwealth Bank of Australia (CBA).
The bank also confirmed that the legislation, as currently proposed, would not impact the distributions paid on CommBank PERLS securities and they would be expected to be fully franked.
According to the company, the implementation of the changes would not result in CBA seeking to redeem PERLS IX.
The proposed New Zealand legislation referred to hybrid mismatch arrangements including those arising from the issue of Additional Tier 1 regulatory capital by banks and financial institutions through overseas branches.
The changes would aim to respond to rules developed by the Organisation for Economic Co-operation and Development.
CommBank PERLS IX Capital Notes are perpetual, subordinated, unsecured notes, issued by CBA through its New Zealand branch.
AUTHOR
Oksana Patron
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
