ANZ has adjusted the terms of its CPS3 preference shares to align them with Australian Prudential Regulation Authority requirements for conversion to common equity.ANZ announced yesterday that, in the event of a common equity trigger event, the maximum conversion number would be calculated by dividing the face value of the CPS3 security (which is $100) by 20 per cent.When CPS3 was issued in September 2011 the maximum conversion number was to be calculated by dividing the face value of the securities by 50 per cent.The change is beneficial for investors because it increases the number of shares that would be issued if there was a trigger event, and this reduces the risk of loss on conversion.Under the terms of the common equity capital trigger event, ANZ must convert CPS3 to equity if the bank's common equity capital ratio falls below 5.125 per cent.The amendment to the CPS3 terms does not change any other conversion conditions.The Westpac convertible preference shares issued in March last year have similar provisions and can also expect to be amended.All CPS issues after this time will have a maximum conversion number consistent with APRA's requirements.