{"id":"F2005L01650","name":"Financial Sector (Collection of Data) determination No. 13 of 2005","slug":"financial-sector-collection-of-data-determination-no-13-of-2005","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":35658,"registerId":"commonwealth-F2005L01650-current","compilationNumber":null,"startDate":"2026-04-01","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard GRS 160.0 (2005)","sectionType":"part","heading":"Reporting Standard GRS 160.0 (2005)","content":"## Reporting Standard GRS 160.0 (2005)","sortOrder":0},{"sectionNumber":"Derivative Activity and Risk Charge","sectionType":"part","heading":"Derivative Activity and Risk Charge","content":"# Derivative Activity and Risk Charge\n\n### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers), including foreign general insurers (foreign insurers) operating in Australia through branch operations, to report to APRA, generally on a quarterly and annual basis, their derivative activity and risk charge.\n\nThis reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:\n\n-   the versions of Form GRF 160.0 Derivative Activity and Risk Charge (Form GRF 160.0) designated for a ‘Licensed Insurer’ and ‘Consolidated Insurance Group’ and the associated instructions (which are attached and all form part of this reporting standard); and\n-   Prudential Standard GPS 110 Capital Adequacy for General Insurers and Guidance Notes GGN 110.1, GGN 110.2, GGN 110.3, GGN 110.4 and GGN 110.5.\n\n# Purpose\n\n1.  Data collected in each version of Form GRF 160.0 is used by APRA for the purpose of prudential supervision including assessing an insurer’s compliance with Prudential Standard GPS 110.0 Capital Adequacy for General Insurers.\n\n# Application and commencement\n\n2. This reporting standard applies to all insurers and shall begin to apply to those entities on the later of 1 July 2005 and the date of registration on the Federal Register of Legislative Instruments.\n\n# Information required\n\n3. An insurer must provide APRA with the information required by the version of Form GRF 160.0 designated for a ‘Licensed Insurer’ for each reporting period.\n\n4. An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 160.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.\n\n# Forms and method of submission\n\n5. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or\n\n(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.\n\nNote: the Direct to APRA application software and paper forms may be obtained from APRA.\n\n# Reporting periods and due dates\n\n6. Subject to paragraph 7, an insurer must provide the information required by this reporting standard:\n\n(a) in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the insurer; and\n\n(b) in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.\n\nNote: The annual information required by paragraph 3 read with subparagraph 6(b), together with certain annual information required by other reporting standards, will form part of the insurer’s yearly statutory accounts within the meaning of section 3 of the Insurance Act 1973 (the Insurance Act). This means that the information must be audited in accordance with paragraph 49J(1)(a) of the Insurance Act. Under subsection 49J(3), the auditor must give the insurer a certificate relating to the yearly statutory accounts, and that certificate must specify the matters provided for in the prudential standards. (The annual information required from a highest parent entity under paragraph 4 read with subparagraph 6(b) is not required to be audited. APRA proposes to determine an exemption, under section 7 of the Insurance Act, in relation to the obligations under Part IV Division 4 of the Act in respect of the auditing of this information.)\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular insurer to require it to provide the information:\n\n(a) more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or\n\n(b) less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by subparagraph 6(a) or (b)).\n\n8. The information required by paragraph 3 of this reporting standard from an insurer must be provided to APRA by the following times:\n\n(a) in the case of the quarterly information required by subparagraph 6(a) – 20 business days after the end of the reporting period to which the information relates; and\n\n(b) in the case of the annual information required by subparagraph 6(b) – 4 months after the end of the reporting period to which the information relates.\n\nNote: Paragraph 49L(1)(a) of the Insurance Act provides that the auditor’s certificate required under subsection 49J(3) of that Act must be lodged with APRA in accordance with the prudential standards. The prudential standards provide that the certificate must be submitted to APRA together with the yearly statutory accounts. Accordingly, the auditor’s certificate relating to the annual information required by paragraph 3 read with subparagraph 6(b) must be provided to APRA by the time specified in subparagraph 8(b) of this reporting standard (unless an extension is granted under paragraph 10).\n\n9. The information required by paragraph 4 of this reporting standard from an insurer that is a highest parent entity must be provided to APRA by the following times:\n\n(a) in the case of the quarterly information required by subparagraph 6(a) – 30 business days after the end of the reporting period to which the information relates; and\n\n(b) in the case of the annual information required by subparagraph 6(b) – 4 months after the end of the reporting period to which the information relates.\n\n10. APRA may grant an insurer an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.\n\n# Quality control\n\n11. The information provided by an insurer under this reporting standard (other than the information required from a highest parent entity under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the approved auditor of the insurer. This will require the auditor to review and test the systems, processes and controls supporting the reporting of the information to ensure that they produce accurate data and are otherwise reliable. This review and testing must be done on an annual basis or more frequently if necessary to enable the approved auditor to form an opinion on the accuracy and reliability of the data.\n\n12. The information provided by an insurer under this reporting standard must be subject to processes and controls developed by the insurer for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the insurer to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n# Authorisation\n\n13. If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.\n\n14. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:\n\n(a) the Principal Executive Officer of the insurer; or\n\n(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).\n\n# Minor alterations to forms and instructions\n\n15. APRA may make minor variations to:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n> 16. If APRA makes such a variation it must notify insurers in writing.\n\nTransitional\n\n17. If a reporting period of an insurer ended on 30 June 2005, or ends after that date, the insurer must report under this reporting standard in respect of that reporting period.\n\nInterpretation\n\n18. In this reporting standard:\n\nAccounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the reporting standard) commencing immediately before 1 January 2005;\n\napproved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays;\n\nconsolidated insurance group means a group comprising:\n\n(a) an insurer that is a highest parent entity; and\n\n(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;\n\nforeign insurer means a foreign general insurer within the meaning of the Insurance Act;\n\nNote: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.\n\nhighest parent entity means an insurer that satisfies all of the following conditions:\n\n(a) it is incorporated in Australia;\n\n(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and\n\n(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;\n\nInsurance Act means the Insurance Act 1973;\n\ninsurer means a general insurer within the meaning of the Insurance Act;\n\nNote: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised reinsurance entity’ is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.\n\n# Principal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;\n\nreporting period means a period mentioned in subparagraph 6(a) or (b) or, if applicable, paragraph 7.\n\n19. A reference to a prudential standard or guidance note means the prudential standard or guidance note, made under section 32 of the Insurance Act, mentioned in the reference, as amended from time to time. If the prudential standard or guidance note has been revoked and replaced, the reference shall be taken to be to the prudential standard or guidance note that has replaced it.","sortOrder":1},{"sectionNumber":"Objective of this reporting standard","sectionType":"division","heading":"Objective of this reporting standard","content":"### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers), including foreign general insurers (foreign insurers) operating in Australia through branch operations, to report to APRA, generally on a quarterly and annual basis, their derivative activity and risk charge.\n\nThis reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:\n\n-   the versions of Form GRF 160.0 Derivative Activity and Risk Charge (Form GRF 160.0) designated for a ‘Licensed Insurer’ and ‘Consolidated Insurance Group’ and the associated instructions (which are attached and all form part of this reporting standard); and\n-   Prudential Standard GPS 110 Capital Adequacy for General Insurers and Guidance Notes GGN 110.1, GGN 110.2, GGN 110.3, GGN 110.4 and GGN 110.5.","sortOrder":2},{"sectionNumber":"Purpose","sectionType":"part","heading":"Purpose","content":"# Purpose\n\n1.  Data collected in each version of Form GRF 160.0 is used by APRA for the purpose of prudential supervision including assessing an insurer’s compliance with Prudential Standard GPS 110.0 Capital Adequacy for General Insurers.","sortOrder":3},{"sectionNumber":"Application and commencement","sectionType":"part","heading":"Application and commencement","content":"# Application and commencement\n\n2. This reporting standard applies to all insurers and shall begin to apply to those entities on the later of 1 July 2005 and the date of registration on the Federal Register of Legislative Instruments.","sortOrder":4},{"sectionNumber":"Information required","sectionType":"part","heading":"Information required","content":"# Information required\n\n3. An insurer must provide APRA with the information required by the version of Form GRF 160.0 designated for a ‘Licensed Insurer’ for each reporting period.\n\n4. An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 160.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.","sortOrder":5},{"sectionNumber":"Forms and method of submission","sectionType":"part","heading":"Forms and method of submission","content":"# Forms and method of submission\n\n5. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or\n\n(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.\n\nNote: the Direct to APRA application software and paper forms may be obtained from APRA.","sortOrder":6},{"sectionNumber":"Reporting periods and due dates","sectionType":"part","heading":"Reporting periods and due dates","content":"# Reporting periods and due dates\n\n6. Subject to paragraph 7, an insurer must provide the information required by this reporting standard:\n\n(a) in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the insurer; and\n\n(b) in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.\n\nNote: The annual information required by paragraph 3 read with subparagraph 6(b), together with certain annual information required by other reporting standards, will form part of the insurer’s yearly statutory accounts within the meaning of section 3 of the Insurance Act 1973 (the Insurance Act). This means that the information must be audited in accordance with paragraph 49J(1)(a) of the Insurance Act. Under subsection 49J(3), the auditor must give the insurer a certificate relating to the yearly statutory accounts, and that certificate must specify the matters provided for in the prudential standards. (The annual information required from a highest parent entity under paragraph 4 read with subparagraph 6(b) is not required to be audited. APRA proposes to determine an exemption, under section 7 of the Insurance Act, in relation to the obligations under Part IV Division 4 of the Act in respect of the auditing of this information.)\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular insurer to require it to provide the information:\n\n(a) more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or\n\n(b) less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by subparagraph 6(a) or (b)).\n\n8. The information required by paragraph 3 of this reporting standard from an insurer must be provided to APRA by the following times:\n\n(a) in the case of the quarterly information required by subparagraph 6(a) – 20 business days after the end of the reporting period to which the information relates; and\n\n(b) in the case of the annual information required by subparagraph 6(b) – 4 months after the end of the reporting period to which the information relates.\n\nNote: Paragraph 49L(1)(a) of the Insurance Act provides that the auditor’s certificate required under subsection 49J(3) of that Act must be lodged with APRA in accordance with the prudential standards. The prudential standards provide that the certificate must be submitted to APRA together with the yearly statutory accounts. Accordingly, the auditor’s certificate relating to the annual information required by paragraph 3 read with subparagraph 6(b) must be provided to APRA by the time specified in subparagraph 8(b) of this reporting standard (unless an extension is granted under paragraph 10).\n\n9. The information required by paragraph 4 of this reporting standard from an insurer that is a highest parent entity must be provided to APRA by the following times:\n\n(a) in the case of the quarterly information required by subparagraph 6(a) – 30 business days after the end of the reporting period to which the information relates; and\n\n(b) in the case of the annual information required by subparagraph 6(b) – 4 months after the end of the reporting period to which the information relates.\n\n10. APRA may grant an insurer an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.","sortOrder":7},{"sectionNumber":"Quality control","sectionType":"part","heading":"Quality control","content":"# Quality control\n\n11. The information provided by an insurer under this reporting standard (other than the information required from a highest parent entity under paragraph 4) must be the product of processes and controls that have been reviewed and tested by the approved auditor of the insurer. This will require the auditor to review and test the systems, processes and controls supporting the reporting of the information to ensure that they produce accurate data and are otherwise reliable. This review and testing must be done on an annual basis or more frequently if necessary to enable the approved auditor to form an opinion on the accuracy and reliability of the data.\n\n12. The information provided by an insurer under this reporting standard must be subject to processes and controls developed by the insurer for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the insurer to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.","sortOrder":8},{"sectionNumber":"Authorisation","sectionType":"part","heading":"Authorisation","content":"# Authorisation\n\n13. If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.\n\n14. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:\n\n(a) the Principal Executive Officer of the insurer; or\n\n(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).","sortOrder":9},{"sectionNumber":"Minor alterations to forms and instructi","sectionType":"part","heading":"Minor alterations to forms and instructions","content":"# Minor alterations to forms and instructions\n\n15. APRA may make minor variations to:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n> 16. If APRA makes such a variation it must notify insurers in writing.\n\nTransitional\n\n17. If a reporting period of an insurer ended on 30 June 2005, or ends after that date, the insurer must report under this reporting standard in respect of that reporting period.\n\nInterpretation\n\n18. In this reporting standard:\n\nAccounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the reporting standard) commencing immediately before 1 January 2005;\n\napproved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays;\n\nconsolidated insurance group means a group comprising:\n\n(a) an insurer that is a highest parent entity; and\n\n(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;\n\nforeign insurer means a foreign general insurer within the meaning of the Insurance Act;\n\nNote: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.\n\nhighest parent entity means an insurer that satisfies all of the following conditions:\n\n(a) it is incorporated in Australia;\n\n(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and\n\n(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;\n\nInsurance Act means the Insurance Act 1973;\n\ninsurer means a general insurer within the meaning of the Insurance Act;\n\nNote: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised reinsurance entity’ is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.","sortOrder":10},{"sectionNumber":"Principal Executive Officer means the pr","sectionType":"part","heading":"Principal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;","content":"# Principal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;\n\nreporting period means a period mentioned in subparagraph 6(a) or (b) or, if applicable, paragraph 7.\n\n19. A reference to a prudential standard or guidance note means the prudential standard or guidance note, made under section 32 of the Insurance Act, mentioned in the reference, as amended from time to time. If the prudential standard or guidance note has been revoked and replaced, the reference shall be taken to be to the prudential standard or guidance note that has replaced it.","sortOrder":11},{"sectionNumber":"Reporting Form GRF 160.0","sectionType":"part","heading":"Reporting Form GRF 160.0","content":"# Reporting Form GRF 160.0\n\n# Derivative Activity and Risk Charge\n\n###### Instruction Guide\n\nIntroduction\n\nThis form:\n\n-   calculates the required capital charge associated with an Insurers exposure to derivative financial instruments and is based on the Prescribed Method set out in paragraphs 23 – 29 of GGN 110.4 Investment Risk Capital Charge.\n\n-   collects information on an Insurers derivative activities and exposures.\n\n#### Audit requirements\n\nThe form relating to authorised insurance entities and reinsurance entities is required to be subject to audit review and testing. The forms relating to the consolidated insurance group reporting unit is not subject to audit review and testing.\n\nThe scope and nature of audit testing required is outlined in the applicable Audit Guidance Statement issued by the Auditing and Assurance Board of the Australian Accounting Research Foundation.\n\nInformation provided in the form in respect of a financial year of an insurer forms part of the insurer’s ‘yearly statutory accounts’ within the meaning of section 3 of the Insurance Act 1973. This means that:\n\n-   the completed form for the financial year must be audited by the approved auditor of the insurer (see paragraph 49J(1)(a) of the Act);\n\n-   the insurer must make such arrangements as to enable the auditor to do this (subsection 49J(2));\n-   the auditor must give the insurer a certificate relating to the completed form (and other completed forms that are part of the insurer’s yearly statutory accounts), which must contain statements of the auditor’s opinion on the matters required by the prudential standards to be dealt with in the certificate (subsection 49J(3));\n-   the certificate must be lodged with APRA as provided for in the prudential standards (paragraph 49L(1)(a)), namely by the due date for lodging the form in respect of the financial year for the insurer.\n\n  \nReporting entity\n\nThis form is to be completed for the following reporting entities:\n\n1.  Branch insurers of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity);\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n4.  Consolidated insurance group.\n\nFor the purposes of APRA prudential reporting, the consolidated insurance group is interpreted as the accounts incorporating the highest parent entity in a group structure, that is an Australian authorised general insurance entity (for the purposes of the Insurance Act 1973), and includes all subsidiaries, associates and joint ventures (registered both in Australia and overseas) of that parent entity.\n\nThe highest parent entity in the corporate group does not include a company (e.g. non-operating holding company) that is not an authorised general insurance entity.\n\nDefinition of subsidiaries should be consistent with the requirements of Australian accounting standards AASB 1024 ‘Consolidated Accounts’ and definition of associates should be consistent with AASB 1016 ‘Accounting for Investments in Associates’.\n\nThis reporting unit is also applicable to licensed insurance entities of a foreign insurance company authorised and registered to operate as a subsidiary operation in Australia. The application of the consolidated insurance group concept in this regard is to exclude the foreign parent company. It is to be applied to the subsidiary company authorised and registered to operate as a general insurance operation in Australia and all its subsidiaries, associated and joint ventures.\n\nExemptions from the Consolidated Insurance Group requirements\n\n-   Australian authorised insurers which do not have any subsidiaries are not required to complete the forms for this reporting unit.\n\n-   Australian authorised insurers which have subsidiaries, but the financial position of the consolidated insurance group is not materially different from that of the licensed insurance entity, are not required to complete the forms for this reporting unit (i.e. the subsidiaries do not have any material dealings/balances).\n\n  \nDefinitions\n\nDefinitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’. In addition, the ‘Glossary of Terms’ also contains a list of definitions of common data reporting items.\n\nUnit of measurement\n\nThe form is to be completed in Australian currency, rounded in thousands of dollars with no decimal place. Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on a quarterly and annual basis.\n\n-   The quarterly information is to be completed in respect of each quarter based on the financial year of the insurer, not the calendar year.\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer. See the Reporting Requirements table for details.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in the Reporting Requirements table.\n\nDefinitions for specific items in the form\n\nDerivative financial instruments\n\nDerivatives expose insurers to a full range of investment risks, even though in many cases there may be no, or only a small initial outlay. Insurers should set aside capital to cover the Investment Risk of these transactions particularly where derivatives are used for other purposes than hedging risk associated with the underlying position.\n\nGenerally defined as those instruments/contracts, where the value is based on other products, either financial or real, and/or on prices associated with financial products. Derivative contracts involve:\n\n-   Future delivery, receipt or exchange of financial items such as cash or another derivative instrument, or\n\n-   Future exchange of real assets for financial items where the contract may be tradeable and has a market value.\n\nThe contracts can either be binding on both parties (e.g. as with a currency swap) or subject to the exercise by one party of a right contained in the contract (as with options).\n\nThe counterparty in a derivative contract is the party assuming the credit risk. For exchange-traded contracts, credit risk is transferred or assumed by the exchange clearing house. For over the counter (OTC) contracts (e.g. derivative contracts customised for the Insurer by a bank), the other party to the contract (seller or buyer) is the counterparty.\n\nDerivative products/contracts are not limited to but include the following:\n\n-   Options (including call and put options; exchange-traded and over-the-counter options; interest-rate, bullion, commodity and equity options; warrants);\n\n-   Interest rate swaps;\n\n-   Cross-currency interest-rate swaps;\n\n-   Foreign exchange swaps;\n\n-   Foreign exchange forwards;\n\n-   Futures (i.e. bank bill, bond, equity); and\n\n-   Forward rate agreements.\n\nWhere the insurer has used the look through provisions under an approved Extended Licensed Entity in relation to units held in a related/controlled entity for the purposes of determining the Investment Risk Capital Charge. Any associated derivative balances relating to the insurers investment securities/portfolio that is contracted by the related entity must also be recognised by the licensed insurer.\n\nExclude:\n\n-   Derivative margin accounts, which hold deposits lodged with an exchange or clearing house as collateral to cover adverse movements in market prices. These balances are to be reported in the Investments form under the appropriate line item within “Call Deposits”.\n\n-   Repurchase/Resale agreements despite their similarity to a FRAs and/or swaps.\n\n######   \nSpecific instructions\n\nAggregate value of all derivative financial instruments (other than exchange traded) with residual maturity of:\n\n1.  This section of the form requires all derivative contract positions of the reporting insurer (except for derivatives traded on recognised futures and options exchanges which are subject to daily marked-to-market), to be classified into the residual maturity bands specified:\n\n-   Less than 1 year\n-   1 year to less than 5 years\n-   5 years or more\n\nResidual maturity refers to the time remaining from the reporting date to the maturity date of the derivative financial contract.\n\n2. Derivative exposures/positions applicable for each of the above residual maturity bands is then required to be sub classified into those exposures/positions that are either long or short positions.\n\n3. Within the long and short position sub classification, derivative exposures are then required to be further sub classified into the appropriate investment/counterparty grade of the derivative contract. The counterparty grades align with the grades specified in Attachment 1 of GGN 110.4 Investment Risk Capital Charge.\n\n### Principal amount\n\nNote: Always record this value as positive, even for short positions in derivative financial instruments.\n\nPrincipal amount for the purpose of this form refers to the face value or notional amount of the derivative financial contract.\n\nRecord the aggregate face value or notional contract amount (always positive) of the derivative exposure/position separated into net long or net short positions, for each of the items listed. Amount is to be rounded to thousands of Australian dollars.\n\n### Market (fair) value\n\nRecord the aggregate market (or fair) value of the derivative exposure/position separated into net long or net short positions, for each of the items listed. Amount is to be rounded to thousands of Australian dollars.\n\nFor the purposes of valuing derivative exposures, for this form, market value should represent an estimate of the amount, which could be expected to be received from the disposal of the derivative instrument in an orderly market, ignoring transaction costs.\n\nMarket value is defined for accounting purposes as a subset of fair value, where fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:\n\n(i) the quoted market price in an active and liquid market (i.e. market value); or\n\n(ii) when there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.\n\n### Asset equivalent\n\nDo not enter a value in this column. The form automatically calculates the asset equivalent value of the derivative exposure. This is calculated based on the Prescribed Method set out in paragraphs 23 – 29 of GGN 110.4 Investment Risk Capital Charge, and is the sum of the:\n\n1.  Current marked-to-market value of the derivative position (refer below); plus\n2.  A potential exposure add-on.\n\nCurrent marked-to-market value of the derivative position\n\nThe current mark-to-market value of a derivative is only applicable where the position has a positive replacement value to the insurer. If the current mark-to-market value of the position is negative or zero, the value is not included in the calculation, as the calculation of the asset equivalent amount is trying to capture the credit risk value of the derivative position to the insurer.\n\nA potential exposure add-on\n\nThe potential exposure add-on for a derivative position is determined by multiplying the notional principal amount of the derivative contract by the appropriate credit conversion factors outlined in the table below. This component of the calculation is required for all derivatives regardless of whether the derivative contract has a positive, zero or negative mark-to-market value.\n\n  \nPotential exposure add-on factors\n\n| Residual Maturity         | Interest Rate Contracts | Foreign Exchange & Gold Contracts | Equity Contracts | Precious Metal Contracts (except gold) | Other Contracts |\n| ------------------------- | ----------------------- | --------------------------------- | ---------------- | -------------------------------------- | --------------- |\n| Less than 1 yr            | Nil                     | 1.0%                              | 6.0%             | 7.0%                                   | 10.0%           |\n| 1 year to less than 5 yrs | 0.5%                    | 5.0%                              | 8.0%             | 7.0%                                   | 12.0%           |\n| More than 5 yrs           | 1.5%                    | 7.5%                              | 10.0%            | 8.0%                                   | 15.0%           |\n\nInvestment risk capital charge\n\nDo not enter a value in this column. This column automatically calculates the appropriate Investment Capital Charge based on the information entered. The capital charge is calculated by multiplying the asset equivalent value by the investment capital factor applicable for each counterparty grade.\n\nRisk Charge Per Derivative Contract Type\n\nDo not enter a value in this field as this is automatically calculated. This is the total capital charge calculated for each contract type (i.e. Interest Rate Contracts, Equity Contracts).\n\nTotal Derivative Risk Charge\n\nDo not enter a value in this field as this is automatically calculated. This is the total capital charge calculated for all contract types, based on the aggregate value of all derivative financial instruments other than exchange traded derivatives.\n\n## Total Derivative Exposure Classified into the Following\n\n(Note: Capital charge is not calculated on these products, but the aggregate value is required for the first 2 columns of each type of derivative market/type).\n\n1.  Total 'Over the Counter' derivative financial instruments\n\nThese refer to derivative contracts that are not traded on a recognised exchange. Instead these contracts are transacted between individual counterparties (e.g. most commonly a bank). The details of a derivative contract can be negotiated between the contracting parties.\n\n-   Forwards, Swaps, Other\n\n#####  Bought Option Positions:\n\n(Note: do not include options in the form of credit derivatives, these are separately disclosed).\n\nReport option positions where the insurer has purchased an option position (i.e. a call or put option) and has the right but not the obligation to exercise the option against the writer and request delivery or sale of the underlying security or cash settlement. Disclose bought option exposures into the following:\n\n(i) Call option.\n\nRight but not the obligation of the holder of the option to require the writer of the option to sell the underlying security/asset to the holder.\n\n(ii) Put option.\n\nRight but not the obligation of the holder of the option to require the writer of the option to buy the underlying security/asset from the holder.\n\n#####  Written Option Positions\n\n(Note: do not include options in the form of credit derivatives, these are separately disclosed).\n\nReport option positions where the insurer has written/sold option positions (i.e. call or put options), and as a result has the obligation to deliver or purchase the underlying product of the option or settle in cash, if exercised by the holder of the option position sold by the insurer. Disclose sold option exposures into the following:\n\n(i) Call option.\n\nObligation but not the right of the writer of the option to sell the underlying security/asset to the holder of the option.\n\n(ii) Put option.\n\nObligation but not the right of the writer of the option to buy the underlying security/asset from the holder.\n\n-   Credit Derivatives\n\n(Note: do not include options based on financial market products/indexes, these are separately disclosed)\n\nReport credit derivative option positions where the insurer is:\n\n(i) providing credit protection; or\n\n(ii) purchasing credit protection.\n\n### 2. Total exchange traded derivative financial instruments - Derivatives traded on futures and options exchanges subject to daily mark-to-market & margin payments.\n\nThese refer to derivative contracts that are transacted on a recognised futures or options exchange (e.g. in Australia the Sydney Futures Exchange) and are subject to daily mark-to-market and margin payment. These contracts are transacted in standardised parcels. The clearing house effectively becomes the counterparty to all derivative positions.\n\nRecord the aggregate principal and market value for each contract type (i.e. Interest Rate Contracts, Equity Contracts).\n\n## Total Derivative Exposure Classified into the Following (over the counter and exchange traded derivatives)\n\n3. Total derivatives, which are in relation to:\n\n-   Investment portfolio (as disclosed in the Investment Forms)\n\nRecord the aggregate principal and market value of derivative exposures that relate to the investment portfolio, either as hedging a component of the underlying investment portfolio (i.e. fixed interest or equities) or as an outright investment.\n\n-   Other assets\n\nRecord the aggregate principal and market value of derivative exposures that are in relation to assets other than those included in the investment portfolio of the insurer (see point above), i.e. used for the purpose of hedging asset returns/values.\n\n-   Claims Liabilities\n\nRecord the aggregate principal and market value of derivative exposures that relate to the insurer’s claims liabilities (e.g. hedging the currency movement on a claim liability denominated in a currency other than Australian currency).\n\n-   Debt Funding/Borrowings\n\nRecord the aggregate principal and market value of derivatives that relate to specific debt/borrowings of the insurer (e.g. hedging the interest rate risk or currency risk associated with the borrowings).\n\n-   Other\n\nRecord the aggregate principal and market value of derivatives that relate to other items not specifically listed above (i.e. hedging the currency risk associated with an anticipated purchase).\n\n-   Total Derivatives, which are with:\n\nDisclose those derivatives that are with the following:\n\n-   Parent entity (only applicable if a parent entity is not included in the consolidated insurance group)\n\nDisclose holdings of derivatives that are purchased from or sold to the parent entity of the licensed insurer or of the consolidated insurance group.\n\n-   Controlled entities (note not applicable for the Consolidated Insurance Group)/Other branches of the parent entity\n\nFor Branches, this line item is to be interpreted as amounts in relation to “Other branches of the parent entity”, and for licensed insurance entities as amounts in relation to “Controlled entities”.\n\nDisclose holdings of derivatives that are purchased from or sold to controlled entities of the licensed insurer.\n\n-   Associate/Joint venture\n\nDisclose holdings of derivative securities that are purchased from or sold to Associates or Joint Ventures of the licensed insurer or of the consolidated insurance group. Associates and Joint Ventures are defined in accordance with AASB 1006 and AASB 1016.\n\n-   Other related parties\n\nDisclose holdings of derivative instruments that are purchased from or sold to any other related entity of the reporting Insurer or of the consolidated insurance group not disclosed above.\n\nRelated parties\n\nWhere this term is used or referenced in these forms, related parties is to be interpreted consistently with its definition and meaning as contained in AASB 1017 ‘Related Party Disclosures’.\n\nIn accordance with AASB 1017 related party means, in relation to a reporting entity any:\n\n(a) other entity that at any time during the financial year, has control or significant influence over the reporting entity; or\n\n(b) other entity that at any time during the financial year, is subject to control or significant influence by the reporting entity; or\n\n(c) other entity that, at any time during the financial year, is controlled by the same entity that controls the reporting entity. Referred to as a situation in which entities are subject to common control; or\n\n(d) other entity that, at any time during the financial year, is controlled by the same entity that significantly influences the reporting entity; or\n\n(e) other entity that, at any time during the financial year, is significantly influenced by the same entity that controls the reporting entity; or\n\n(f) director of the reporting entity or any of their director-related entities; or\n\n(g) director of any other entity identified as a related party under any of paragraphs (a) to (e), or any of their director-related entities;\n\nbut excludes any other entity (except those identified as a related party under paragraph (f)) where the related party relationship results solely from normal dealings of:\n\n(h) financial institutions; or\n\n(i) authorised trustee corporations; or\n\n(j) fund managers; or\n\n(k) trade unions; or\n\n(l) statutory authorities; or\n\n(m) government departments; or\n\n(n) local governments.[\\[1\\]](#_ftn1)\n\nAASB 1017 defines director-related entities as meaning “the spouses of such directors, relatives of such directors or spouses and any other entity under the joint or several control or significant influence of such directors, spouses or relatives”.\n\nRelative in relation to a person is defined in the Corporations Law to mean the spouse, partner, son, daughter, or brother or sister of the person.","sortOrder":12},{"sectionNumber":"Instruction Guide","sectionType":"section","heading":"Instruction Guide","content":"###### Instruction Guide\n\nIntroduction\n\nThis form:\n\n-   calculates the required capital charge associated with an Insurers exposure to derivative financial instruments and is based on the Prescribed Method set out in paragraphs 23 – 29 of GGN 110.4 Investment Risk Capital Charge.\n\n-   collects information on an Insurers derivative activities and exposures.","sortOrder":14},{"sectionNumber":"Audit requirements","sectionType":"subdivision","heading":"Audit requirements","content":"#### Audit requirements\n\nThe form relating to authorised insurance entities and reinsurance entities is required to be subject to audit review and testing. The forms relating to the consolidated insurance group reporting unit is not subject to audit review and testing.\n\nThe scope and nature of audit testing required is outlined in the applicable Audit Guidance Statement issued by the Auditing and Assurance Board of the Australian Accounting Research Foundation.\n\nInformation provided in the form in respect of a financial year of an insurer forms part of the insurer’s ‘yearly statutory accounts’ within the meaning of section 3 of the Insurance Act 1973. This means that:\n\n-   the completed form for the financial year must be audited by the approved auditor of the insurer (see paragraph 49J(1)(a) of the Act);\n\n-   the insurer must make such arrangements as to enable the auditor to do this (subsection 49J(2));\n-   the auditor must give the insurer a certificate relating to the completed form (and other completed forms that are part of the insurer’s yearly statutory accounts), which must contain statements of the auditor’s opinion on the matters required by the prudential standards to be dealt with in the certificate (subsection 49J(3));\n-   the certificate must be lodged with APRA as provided for in the prudential standards (paragraph 49L(1)(a)), namely by the due date for lodging the form in respect of the financial year for the insurer.\n\n  \nReporting entity\n\nThis form is to be completed for the following reporting entities:\n\n1.  Branch insurers of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity);\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n4.  Consolidated insurance group.\n\nFor the purposes of APRA prudential reporting, the consolidated insurance group is interpreted as the accounts incorporating the highest parent entity in a group structure, that is an Australian authorised general insurance entity (for the purposes of the Insurance Act 1973), and includes all subsidiaries, associates and joint ventures (registered both in Australia and overseas) of that parent entity.\n\nThe highest parent entity in the corporate group does not include a company (e.g. non-operating holding company) that is not an authorised general insurance entity.\n\nDefinition of subsidiaries should be consistent with the requirements of Australian accounting standards AASB 1024 ‘Consolidated Accounts’ and definition of associates should be consistent with AASB 1016 ‘Accounting for Investments in Associates’.\n\nThis reporting unit is also applicable to licensed insurance entities of a foreign insurance company authorised and registered to operate as a subsidiary operation in Australia. The application of the consolidated insurance group concept in this regard is to exclude the foreign parent company. It is to be applied to the subsidiary company authorised and registered to operate as a general insurance operation in Australia and all its subsidiaries, associated and joint ventures.\n\nExemptions from the Consolidated Insurance Group requirements\n\n-   Australian authorised insurers which do not have any subsidiaries are not required to complete the forms for this reporting unit.\n\n-   Australian authorised insurers which have subsidiaries, but the financial position of the consolidated insurance group is not materially different from that of the licensed insurance entity, are not required to complete the forms for this reporting unit (i.e. the subsidiaries do not have any material dealings/balances).\n\n  \nDefinitions\n\nDefinitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’. In addition, the ‘Glossary of Terms’ also contains a list of definitions of common data reporting items.\n\nUnit of measurement\n\nThe form is to be completed in Australian currency, rounded in thousands of dollars with no decimal place. Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 1012 ‘Foreign Currency Translation’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on a quarterly and annual basis.\n\n-   The quarterly information is to be completed in respect of each quarter based on the financial year of the insurer, not the calendar year.\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer. See the Reporting Requirements table for details.\n\nReporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in the Reporting Requirements table.\n\nDefinitions for specific items in the form\n\nDerivative financial instruments\n\nDerivatives expose insurers to a full range of investment risks, even though in many cases there may be no, or only a small initial outlay. Insurers should set aside capital to cover the Investment Risk of these transactions particularly where derivatives are used for other purposes than hedging risk associated with the underlying position.\n\nGenerally defined as those instruments/contracts, where the value is based on other products, either financial or real, and/or on prices associated with financial products. Derivative contracts involve:\n\n-   Future delivery, receipt or exchange of financial items such as cash or another derivative instrument, or\n\n-   Future exchange of real assets for financial items where the contract may be tradeable and has a market value.\n\nThe contracts can either be binding on both parties (e.g. as with a currency swap) or subject to the exercise by one party of a right contained in the contract (as with options).\n\nThe counterparty in a derivative contract is the party assuming the credit risk. For exchange-traded contracts, credit risk is transferred or assumed by the exchange clearing house. For over the counter (OTC) contracts (e.g. derivative contracts customised for the Insurer by a bank), the other party to the contract (seller or buyer) is the counterparty.\n\nDerivative products/contracts are not limited to but include the following:\n\n-   Options (including call and put options; exchange-traded and over-the-counter options; interest-rate, bullion, commodity and equity options; warrants);\n\n-   Interest rate swaps;\n\n-   Cross-currency interest-rate swaps;\n\n-   Foreign exchange swaps;\n\n-   Foreign exchange forwards;\n\n-   Futures (i.e. bank bill, bond, equity); and\n\n-   Forward rate agreements.\n\nWhere the insurer has used the look through provisions under an approved Extended Licensed Entity in relation to units held in a related/controlled entity for the purposes of determining the Investment Risk Capital Charge. Any associated derivative balances relating to the insurers investment securities/portfolio that is contracted by the related entity must also be recognised by the licensed insurer.\n\nExclude:\n\n-   Derivative margin accounts, which hold deposits lodged with an exchange or clearing house as collateral to cover adverse movements in market prices. These balances are to be reported in the Investments form under the appropriate line item within “Call Deposits”.\n\n-   Repurchase/Resale agreements despite their similarity to a FRAs and/or swaps.","sortOrder":15},{"sectionNumber":"Specific instructions","sectionType":"section","heading":"Specific instructions","content":"######   \nSpecific instructions\n\nAggregate value of all derivative financial instruments (other than exchange traded) with residual maturity of:\n\n1.  This section of the form requires all derivative contract positions of the reporting insurer (except for derivatives traded on recognised futures and options exchanges which are subject to daily marked-to-market), to be classified into the residual maturity bands specified:\n\n-   Less than 1 year\n-   1 year to less than 5 years\n-   5 years or more\n\nResidual maturity refers to the time remaining from the reporting date to the maturity date of the derivative financial contract.\n\n2. Derivative exposures/positions applicable for each of the above residual maturity bands is then required to be sub classified into those exposures/positions that are either long or short positions.\n\n3. Within the long and short position sub classification, derivative exposures are then required to be further sub classified into the appropriate investment/counterparty grade of the derivative contract. The counterparty grades align with the grades specified in Attachment 1 of GGN 110.4 Investment Risk Capital Charge.","sortOrder":16},{"sectionNumber":"Principal amount","sectionType":"division","heading":"Principal amount","content":"### Principal amount\n\nNote: Always record this value as positive, even for short positions in derivative financial instruments.\n\nPrincipal amount for the purpose of this form refers to the face value or notional amount of the derivative financial contract.\n\nRecord the aggregate face value or notional contract amount (always positive) of the derivative exposure/position separated into net long or net short positions, for each of the items listed. Amount is to be rounded to thousands of Australian dollars.","sortOrder":17},{"sectionNumber":"Market (fair) value","sectionType":"division","heading":"Market (fair) value","content":"### Market (fair) value\n\nRecord the aggregate market (or fair) value of the derivative exposure/position separated into net long or net short positions, for each of the items listed. Amount is to be rounded to thousands of Australian dollars.\n\nFor the purposes of valuing derivative exposures, for this form, market value should represent an estimate of the amount, which could be expected to be received from the disposal of the derivative instrument in an orderly market, ignoring transaction costs.\n\nMarket value is defined for accounting purposes as a subset of fair value, where fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction, and is determined as follows:\n\n(i) the quoted market price in an active and liquid market (i.e. market value); or\n\n(ii) when there is infrequent activity in a market, the market is not well established, small volumes are traded relative to the asset or liability to be valued, or a quoted market price is not available – an estimate of a price for the asset or liability in an active and liquid market.","sortOrder":18},{"sectionNumber":"Asset equivalent","sectionType":"division","heading":"Asset equivalent","content":"### Asset equivalent\n\nDo not enter a value in this column. The form automatically calculates the asset equivalent value of the derivative exposure. This is calculated based on the Prescribed Method set out in paragraphs 23 – 29 of GGN 110.4 Investment Risk Capital Charge, and is the sum of the:\n\n1.  Current marked-to-market value of the derivative position (refer below); plus\n2.  A potential exposure add-on.\n\nCurrent marked-to-market value of the derivative position\n\nThe current mark-to-market value of a derivative is only applicable where the position has a positive replacement value to the insurer. If the current mark-to-market value of the position is negative or zero, the value is not included in the calculation, as the calculation of the asset equivalent amount is trying to capture the credit risk value of the derivative position to the insurer.\n\nA potential exposure add-on\n\nThe potential exposure add-on for a derivative position is determined by multiplying the notional principal amount of the derivative contract by the appropriate credit conversion factors outlined in the table below. This component of the calculation is required for all derivatives regardless of whether the derivative contract has a positive, zero or negative mark-to-market value.\n\n  \nPotential exposure add-on factors\n\n| Residual Maturity         | Interest Rate Contracts | Foreign Exchange & Gold Contracts | Equity Contracts | Precious Metal Contracts (except gold) | Other Contracts |\n| ------------------------- | ----------------------- | --------------------------------- | ---------------- | -------------------------------------- | --------------- |\n| Less than 1 yr            | Nil                     | 1.0%                              | 6.0%             | 7.0%                                   | 10.0%           |\n| 1 year to less than 5 yrs | 0.5%                    | 5.0%                              | 8.0%             | 7.0%                                   | 12.0%           |\n| More than 5 yrs           | 1.5%                    | 7.5%                              | 10.0%            | 8.0%                                   | 15.0%           |\n\nInvestment risk capital charge\n\nDo not enter a value in this column. This column automatically calculates the appropriate Investment Capital Charge based on the information entered. The capital charge is calculated by multiplying the asset equivalent value by the investment capital factor applicable for each counterparty grade.\n\nRisk Charge Per Derivative Contract Type\n\nDo not enter a value in this field as this is automatically calculated. This is the total capital charge calculated for each contract type (i.e. Interest Rate Contracts, Equity Contracts).\n\nTotal Derivative Risk Charge\n\nDo not enter a value in this field as this is automatically calculated. This is the total capital charge calculated for all contract types, based on the aggregate value of all derivative financial instruments other than exchange traded derivatives.","sortOrder":19},{"sectionNumber":"Total Derivative Exposure Classified int","sectionType":"part","heading":"Total Derivative Exposure Classified into the Following","content":"## Total Derivative Exposure Classified into the Following\n\n(Note: Capital charge is not calculated on these products, but the aggregate value is required for the first 2 columns of each type of derivative market/type).\n\n1.  Total 'Over the Counter' derivative financial instruments\n\nThese refer to derivative contracts that are not traded on a recognised exchange. Instead these contracts are transacted between individual counterparties (e.g. most commonly a bank). The details of a derivative contract can be negotiated between the contracting parties.\n\n-   Forwards, Swaps, Other","sortOrder":20},{"sectionNumber":" Bought Option Positions:","sectionType":"section","heading":" Bought Option Positions:","content":"#####  Bought Option Positions:\n\n(Note: do not include options in the form of credit derivatives, these are separately disclosed).\n\nReport option positions where the insurer has purchased an option position (i.e. a call or put option) and has the right but not the obligation to exercise the option against the writer and request delivery or sale of the underlying security or cash settlement. Disclose bought option exposures into the following:\n\n(i) Call option.\n\nRight but not the obligation of the holder of the option to require the writer of the option to sell the underlying security/asset to the holder.\n\n(ii) Put option.\n\nRight but not the obligation of the holder of the option to require the writer of the option to buy the underlying security/asset from the holder.","sortOrder":21},{"sectionNumber":" Written Option Positions","sectionType":"section","heading":" Written Option Positions","content":"#####  Written Option Positions\n\n(Note: do not include options in the form of credit derivatives, these are separately disclosed).\n\nReport option positions where the insurer has written/sold option positions (i.e. call or put options), and as a result has the obligation to deliver or purchase the underlying product of the option or settle in cash, if exercised by the holder of the option position sold by the insurer. Disclose sold option exposures into the following:\n\n(i) Call option.\n\nObligation but not the right of the writer of the option to sell the underlying security/asset to the holder of the option.\n\n(ii) Put option.\n\nObligation but not the right of the writer of the option to buy the underlying security/asset from the holder.\n\n-   Credit Derivatives\n\n(Note: do not include options based on financial market products/indexes, these are separately disclosed)\n\nReport credit derivative option positions where the insurer is:\n\n(i) providing credit protection; or\n\n(ii) purchasing credit protection.","sortOrder":22},{"sectionNumber":"2. Total exchange traded derivative fina","sectionType":"division","heading":"2. Total exchange traded derivative financial instruments - Derivatives traded on futures and options exchanges subject to daily mark-to-market & margin payments.","content":"### 2. Total exchange traded derivative financial instruments - Derivatives traded on futures and options exchanges subject to daily mark-to-market & margin payments.\n\nThese refer to derivative contracts that are transacted on a recognised futures or options exchange (e.g. in Australia the Sydney Futures Exchange) and are subject to daily mark-to-market and margin payment. These contracts are transacted in standardised parcels. The clearing house effectively becomes the counterparty to all derivative positions.\n\nRecord the aggregate principal and market value for each contract type (i.e. Interest Rate Contracts, Equity Contracts).","sortOrder":23}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"The reporting standard’s scope matches its stated objective: collecting insurers’ derivative activity and the derivative risk capital charge for prudential supervision of general insurers (paras 1–4, Interpretation). It applies to licensed insurers, foreign branches and highest parent entities for consolidated groups, and relies on APRA discretion only to vary frequency or deadlines (para 7) rather than to expand who must report."},"complexity_factors":["Technical valuation and capital calculations: asset-equivalent calculation, mark-to-market rules and potential exposure add-on factors with multiple maturity and product bands (see Specific Instructions; Potential exposure add-on factors table).","Regulatory cross-references: relies on Prudential Standard GPS 110 and Guidance Notes GGN 110.x plus multiple AASB accounting standards, requiring alignment with external instruments (Objective & Purpose; Interpretation).","Multiple reporting units and exceptions: separate form versions and audit requirements for 'Licensed Insurer' vs 'Consolidated Insurance Group' and exemptions where subsidiaries are immaterial (paras 3–4; Reporting Form instructions).","Audit and quality controls: mandatory auditor review/testing of controls for most reporting units, and auditor certificates for annual returns (paras 11, Audit requirements; Notes on yearly statutory accounts).","Operational requirements: electronic D2A submission with digital certificates, or paper filing with executive signatures—introduces IT, access and recordkeeping burdens (para 5; paras 13–14).","Timing and APRA discretion: fixed due dates (20/30 business days quarterly; 4 months annually) but APRA may alter frequency or grant extensions, creating compliance uncertainty (paras 6–10).","Detailed data granularity and formats: rounding, currency conversion rules, separate OTC vs exchange-traded reporting, long/short classifications and counterparty grading (Unit of measurement; Specific Instructions)."],"plain_english_summary":"This standard requires all Australian general insurers (including foreign branches) to submit quarterly and annual reports on derivative positions and the computed derivative risk capital charge to APRA via Form GRF 160.0. APRA uses the data for prudential supervision and capital adequacy (para 1). It imposes audit, internal-control, authorisation and filing-timetable obligations on insurers, and gives APRA discretion to change reporting frequency and due dates."},"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2579},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The legislation maintains its original scope as a specific reporting requirement for derivative activity and risk charges by general insurers. It operates within the data collection framework established under the Financial Sector (Collection of Data) Act 2001 and does not appear to have expanded beyond its initial prudential supervision purpose."},"complexity_factors":["Extensive cross-referencing to external prudential standards (GPS 110, GGN 110.1-110.5) and accounting standards (AASB 1024, AASB 1016, AASB 1017, AASB 1012)","Multi-step mathematical calculations for risk charges involving notional principal amounts, credit conversion factors (ranging from 0.5% to 15%), and asset equivalent valuations","Differentiated reporting obligations for three distinct entity categories: standalone licensed insurers, foreign branch operations, and consolidated insurance groups","Technical financial terminology requiring specialized knowledge of derivatives (OTC vs exchange-traded, residual maturity bands, counterparty credit grades, mark-to-market valuation)","Nested conditional logic including exemptions for immaterial subsidiaries and special \"look-through\" provisions for controlled entities","Dual reporting frequencies (quarterly vs annual) with differing audit requirements, due dates (20 vs 30 business days), and authorization procedures (digital certificates vs physical signatures)"],"plain_english_summary":"This law requires general insurers (including foreign branches and insurance groups) to regularly report their derivatives trading to APRA using Form GRF 160.0, with quarterly and audited annual submissions. It covers exchange‑traded and OTC contracts and asks for exposures, positions, counterparty credit and a capital risk charge. APRA uses the data to assess capital adequacy and solvency, protecting policyholders by ensuring insurers can absorb potential derivative losses."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-determination-no-13-of-2005","history":"/api/acts/financial-sector-collection-of-data-determination-no-13-of-2005/history","analysis":"/api/acts/financial-sector-collection-of-data-determination-no-13-of-2005/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-determination-no-13-of-2005/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-determination-no-13-of-2005/important-cases","documents":"/api/acts/financial-sector-collection-of-data-determination-no-13-of-2005/documents"}}