Regulatory Alerts2022-12-07
Submission on the Mutual Capital Instruments Consultation Paper by Nelson Building Society and Southland Building Societies
Nelson Building Society and Southland Building Societies submit feedback to the Reserve Bank of New Zealand regarding the introduction of Mutual Capital Instruments as CET1 capital. The Submitters strongly support adopting the United Kingdom's Core Capital Deferred Shares model, specifically advocating for a cap on investor entitlement to surplus assets upon wind-up to better balance member and investor interests. They argue that adapting capital requirements for mutual structures enhances financial stability and competition without compromising mutual principles or governance accountability.
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