Dec 9 (Reuters) - Australian Prudential (LON:PRU) Regulation Authority:
* RELEASES LETTER TO ADIS ON CAPITAL TREATMENT OF INVESTMENTS IN AUSTRALIAN BUSINESS GROWTH FUND
* ADJUSTING ITS CAPITAL FRAMEWORK FOR AUTHORISED DEPOSIT-TAKING INSTITUTIONS TO SUPPORT ESTABLISHMENT OF AUSTRALIAN BUSINESS GROWTH FUND
* AN ADI THAT INVESTS IN THE ABGF WILL BE ABLE TO APPLY A RISK WEIGHT OF 250 PER CENT TO THEIR INVESTMENT
* TO ENSURE RISKS TO ADIS OF INVESTING IN ABGF ARE CONTAINED, AN ADI WILL ONLY BE ABLE TO INVEST UP TO 2 % OF ITS LEVEL 1 CET1 CAPITAL IN ABGF
* ANY ADDITIONAL EQUITY INVESTMENT BEYOND 2% WILL NOT BE ELIGIBLE FOR THE 250 PER CENT RISK WEIGHT