NZ legislation to have no impact on CommBank PERLS

15 December 2017
| By Oksana Patron |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago