Region

Jurisdiction

Regulator

2013-06-11

D8 of 2013: Matters related to the composition of Pillar 3 capital disclosure requirements

The document establishes Annexure B, a mandatory Main Features Disclosure Template that banks must use to report key characteristics of all outstanding regulatory capital instruments. It requires institutions to complete specific data fields covering issuer details, transitional and post-transitional Basel III regulatory treatment, and instrument classifications. The template further mandates detailed disclosure of coupon structures, conversion triggers, write-down mechanisms, and subordination hierarchy to ensure transparency regarding loss absorbency.

South Africa

South African Reserve Bank

ANNEXURE B

MAIN FEATURES DISCLOSURE TEMPLATE

Name of bank/ controlling company.......................... Six months* ended................................(yyyy-mm-dd)

Set out below is the template that banks must use to ensure that the key features of all regulatory capital instruments are disclosed. Banks will be required to complete all of the shaded cells for each outstanding regulatory capital instrument (banks should insert "NA" if the question is not applicable).

	Disclosure template for main features of regulatory capital instruments
1	Issuer
2	Unique identifier (e.g. CUSIP, ISIN or Bloomberg identifier for private placement)
3	Governing law(s) of the instrument
	Regulatory treatment
4	Transitional Basel III rules
5	Post-transitional Basel III rules
6	Eligible at solo/group/group & solo
7	Instrument type (types to be specified by each jurisdiction)
8	Amount recognised in regulatory capital (Currency in mil, as of most recent reporting date)
9	Par value of instrument
10	Accounting classification
11	Original date of issuance
12	Perpetual or dated
13	Original maturity date
14	Issuer call subject to prior supervisory approval
15	Optional call date, contingent call dates and redemption amount
16	Subsequent call dates, if applicable
	Coupons / dividends
17	Fixed or floating dividend/coupon
18	Coupon rate and any related index
19	Existence of a dividend stopper
20	Fully discretionary, partially discretionary or mandatory
21	Existence of step up or other incentive to redeem
22	Noncumulative or cumulative
23	Convertible or non-convertible
24	If convertible, conversion trigger (s)
25	If convertible, fully or partially
26	If convertible, conversion rate
27	If convertible, mandatory or optional conversion
28	If convertible, specify instrument type convertible into
29	If convertible, specify issuer of instrument it converts into
30	Write-down feature
31	If write-down, write-down trigger(s)
32	If write-down, full or partial
33	If write-down, permanent or temporary
34	If temporary write-down, description of write-up mechanism
35	Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument)
36	Non-compliant transitioned features
37	If yes, specify non-compliant features

Further explanation of items in main features disclosure template
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2
3
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7
8
9
10
11
12
13
14
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16
17
18
19
20
21
22

23	Specifies whether instrument is convertible or not. Helps to assess loss absorbency. Select from menu: [Convertible] [Nonconvertible].
24	Specifies the conditions under which the instrument will convert, including point of non-viability. Where one or more authorities have the ability to trigger conversion, the authorities should be listed. For each of the authorities it should be stated whether it is the terms of the contract of the instrument that provide the legal basis for the authority to trigger Composition of capital disclosure requirements 19 conversion (a contractual approach) or whether the legal basis is provided by statutory means (a statutory approach).
25	For conversion trigger separately, specifies whether the instrument will: (i) always convert fully; (ii) may convert fully or partially; or (iii) will always convert partially referencing one of the options above.
26	Specifies rate of conversion into the more loss absorbent instrument. Helps to assess the degree of loss absorbency. Select from menu: [Mandatory] [Optional] [NA].
27	For convertible instruments, specifies whether conversion is mandatory or optional. Helps to assess loss absorbency. Select from menu: [Mandatory] [Optional] [NA].
28	For convertible instruments, specifies instrument type convertible into. Helps to assess loss absorbency. Select from menu: [Common Equity Tier 1] [Additional Tier 1] [Tier 2] [Other].
29	If convertible, specify issuer of instrument into which it converts.
30	Specifies whether there is a write down feature. Helps to assess loss absorbency. Select from menu: [Yes] [No].
31	Specifies the trigger at which write-down occurs, including point of non-viability. Where one or more authorities have the ability to trigger write-down, the authorities should be listed. For each of the authorities it should be stated whether it is the terms of the contract of the instrument that provide the legal basis for the authority to trigger write-down (a contractual approach) or whether the legal basis is provided by statutory means (a statutory approach).
32	For each write-down trigger separately, specifies whether the instrument will: (i) always be written down fully: (ii) may be written down partially; or (iii) will always be written down partially. Helps assess the level of loss absorbency at write-down. referencing one of the options above.
33	For write down instrument, specifies whether write down is permanent or temporary. Helps to assess loss absorbency.
34	For instrument that has a temporary write-down, description of write-up mechanism. Select from menu: [Permanent] [Temporary] [NA].
35	Specifies instrument to which it is most immediately subordinate. Helps to assess loss absorbency on gone-concern basis. Where applicable, banks should specify the column numbers of the instruments in the completed main features template to which the instrument is most immediately subordinate.
36	Specifies whether there are non-compliant features. Select from menu: [Yes] [No].
37	If there are non-compliant features, asks bank/institution to specify which ones. Helps to assess instrument loss absorbency.