(1) A fund administrator shall obtain the written prior permission of the Bank before doing either or both of the following:
(a) reduce, redeem or repurchase Common Equity Tier 1 instruments issued by the fund administrator;
(b) effect the call, redemption, repayment or repurchase of Additional Tier 1 or Tier 2 instruments prior to the date of their contractual maturity.
(2) The permission referred to paragraph (1) shall only be granted for the fund administrator to reduce, repurchase, call or redeem Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments where either of the following conditions are met:
(a) earlier than or at the same time as the action referred to in paragraph (1), the fund administrator replaces the instruments referred to in paragraph (1) with instruments of an equal or higher quality tier at terms that are sustainable for the income capacity of the fund administrator;
(b) the fund administrator has demonstrated to the satisfaction of the Bank that the o