{"id":"F2007L04676","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 21 of 2007 - LRS 210.0 Derivatives, Commitments and Off-Balance Sheet Items","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-21-of-2007-lrs-210-0-derivat","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":71071,"registerId":"commonwealth-F2007L04676-current","compilationNumber":null,"startDate":"2026-04-02","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard LRS 210.0","sectionType":"part","heading":"Reporting Standard LRS 210.0","content":"![](image.001.png)\n\n# Reporting Standard LRS 210.0\n\n## Derivatives, Commitments and Off-Balance Sheet Items\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. It requires all registered life insurance companies to report to APRA, in general, on a quarterly and an annual basis in relation to derivatives, commitments and off-balance sheet items.\n\nThis reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items, and the associated instructions (both of which are attached and form part of this reporting standard).\n\nPurpose\n\n1.  Information collected in Form LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items (LRF 210.0) is used by APRA for the purpose of prudential supervision, including assessing compliance with prudential standards and actuarial standards where appropriate. It may also be used by the Reserve Bank of Australia, the Australian Bureau of Statistics and the Australian Securities and Investments Commission.\n\nApplication\n\n2. This reporting standard applies to all life insurance companies including friendly societies (together referred to as life companies) registered under the Life Insurance Act 1995 (Life Insurance Act).\n\nInformation required\n\n3. A life company must provide APRA with the information required by Form LRF 210.0 for each reporting period.\n\nNote: the instructions for Form LRF 210.0 explain in more detail the information that is required.\n\n4. The information required to be provided to APRA under this reporting standard is not intended to form part of the financial statements or the annual returns, within the meaning of section 124 of the Life Insurance Act, given by the life company to APRA.\n\nMethod of submission\n\n5. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by completing Form LRF 210.0 on paper and mailing the completed form to APRA\n\nNote: the ‘Direct to APRA’ application software and paper forms may be obtained from APRA.\n\nReporting periods and due dates\n\n6. Subject to paragraph 7, a life company must provide the information required by this reporting standard:  \n  \n(a) in unaudited form - in respect of each quarter based on the financial year  \nof the life company; and  \n  \n(b) in audited form - in respect of each financial year of the life company.  \n  \nNote 1: this means that this form will be submitted five times for a full financial year.\n\nNote 2: the annual audited form must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Actuarial Requirements Paragraph 8.\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular life company, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the life company;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the life company; and\n\n(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics or the Australian Securities and Investments Commission.\n\n8. The quarterly information required by this reporting standard in unaudited form must be provided to APRA within 20 business days after the end of the reporting period to which the information relates. The annual information required by this reporting standard in audited form must be provided to APRA within four months after the end of the reporting period to which the information relates.\n\n9. APRA may grant a life company 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\nQuality control\n\n10. The information provided by a life company under this reporting standard must be the product of processes and controls that have been reviewed and tested by the auditor of the life company.\n\n11. All information provided by a life company under this reporting standard must be subject to processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n12. Information provided to APRA in audited form must be audited by the auditor of the life company.\n\n13. Actuarial valuations and calculations included in, or used in the preparation of, the information provided to APRA must be in accordance with the actuarial standards and prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year). The instructions to Form LRF 210.0 include general principles on the use of estimates.\n\nAuthorisation\n\n14. If the officer of a life company provides the information required by this reporting standard:\n\n(a) using Direct to APRA (D2A), the officer must digitally authorise, submit the data to APRA and receive a D2A receipt number for the information to be considered given to APRA. APRA will issue ‘digital certificates’ to officers of the life company who have authority to transmit the data to APRA; or\n\n(b) on paper, the relevant completed form must be signed on the front page by the principal executive officer or chief financial officer of the life company.\n\nNote: information in draft returns saved at APRA using D2A will not be considered to be provided to APRA for the purposes of the life company's obligations under this reporting standard.\n\nMinor 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\n16. If APRA makes such a variation it must notify in writing each life company that is required to report under this reporting standard.\n\n# Transitional\n\n17. A life company must report in accordance with this reporting standard for any reporting period ending on or after 1 January 2008. However, a life company must also report to APRA in accordance with the Prudential Rules which applied before the commencement of this reporting standard in respect of any reporting period ending before 1 January 2008.\n\nNote: as an additional transitional measure, a life company must also report to APRA in accordance with Reporting Standard LRS 901 Transitional Arrangements 2008.\n\nInterpretation\n\n18. In this reporting standard:\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays or public holidays;\n\nprincipal executive officer means the principal executive officer of the life company for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity;\n\nreporting period means a reporting period under paragraph 6 or, if applicable, paragraph 7.","sortOrder":0},{"sectionNumber":"Derivatives, Commitments and Off-Balance","sectionType":"part","heading":"Derivatives, Commitments and Off-Balance Sheet Items","content":"## Derivatives, Commitments and Off-Balance Sheet Items\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. It requires all registered life insurance companies to report to APRA, in general, on a quarterly and an annual basis in relation to derivatives, commitments and off-balance sheet items.\n\nThis reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items, and the associated instructions (both of which are attached and form part of this reporting standard).\n\nPurpose\n\n1.  Information collected in Form LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items (LRF 210.0) is used by APRA for the purpose of prudential supervision, including assessing compliance with prudential standards and actuarial standards where appropriate. It may also be used by the Reserve Bank of Australia, the Australian Bureau of Statistics and the Australian Securities and Investments Commission.\n\nApplication\n\n2. This reporting standard applies to all life insurance companies including friendly societies (together referred to as life companies) registered under the Life Insurance Act 1995 (Life Insurance Act).\n\nInformation required\n\n3. A life company must provide APRA with the information required by Form LRF 210.0 for each reporting period.\n\nNote: the instructions for Form LRF 210.0 explain in more detail the information that is required.\n\n4. The information required to be provided to APRA under this reporting standard is not intended to form part of the financial statements or the annual returns, within the meaning of section 124 of the Life Insurance Act, given by the life company to APRA.\n\nMethod of submission\n\n5. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by completing Form LRF 210.0 on paper and mailing the completed form to APRA\n\nNote: the ‘Direct to APRA’ application software and paper forms may be obtained from APRA.\n\nReporting periods and due dates\n\n6. Subject to paragraph 7, a life company must provide the information required by this reporting standard:  \n  \n(a) in unaudited form - in respect of each quarter based on the financial year  \nof the life company; and  \n  \n(b) in audited form - in respect of each financial year of the life company.  \n  \nNote 1: this means that this form will be submitted five times for a full financial year.\n\nNote 2: the annual audited form must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Actuarial Requirements Paragraph 8.\n\n7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular life company, to require it to provide the information required by this reporting standard more frequently, or less frequently, having regard to:\n\n(a) the particular circumstances of the life company;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the life company; and\n\n(c) the requirements of the Reserve Bank of Australia or the Australian Bureau of Statistics or the Australian Securities and Investments Commission.\n\n8. The quarterly information required by this reporting standard in unaudited form must be provided to APRA within 20 business days after the end of the reporting period to which the information relates. The annual information required by this reporting standard in audited form must be provided to APRA within four months after the end of the reporting period to which the information relates.\n\n9. APRA may grant a life company 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\nQuality control\n\n10. The information provided by a life company under this reporting standard must be the product of processes and controls that have been reviewed and tested by the auditor of the life company.\n\n11. All information provided by a life company under this reporting standard must be subject to processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n12. Information provided to APRA in audited form must be audited by the auditor of the life company.\n\n13. Actuarial valuations and calculations included in, or used in the preparation of, the information provided to APRA must be in accordance with the actuarial standards and prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year). The instructions to Form LRF 210.0 include general principles on the use of estimates.\n\nAuthorisation\n\n14. If the officer of a life company provides the information required by this reporting standard:\n\n(a) using Direct to APRA (D2A), the officer must digitally authorise, submit the data to APRA and receive a D2A receipt number for the information to be considered given to APRA. APRA will issue ‘digital certificates’ to officers of the life company who have authority to transmit the data to APRA; or\n\n(b) on paper, the relevant completed form must be signed on the front page by the principal executive officer or chief financial officer of the life company.\n\nNote: information in draft returns saved at APRA using D2A will not be considered to be provided to APRA for the purposes of the life company's obligations under this reporting standard.\n\nMinor 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\n16. If APRA makes such a variation it must notify in writing each life company that is required to report under this reporting standard.\n\n# Transitional\n\n17. A life company must report in accordance with this reporting standard for any reporting period ending on or after 1 January 2008. However, a life company must also report to APRA in accordance with the Prudential Rules which applied before the commencement of this reporting standard in respect of any reporting period ending before 1 January 2008.\n\nNote: as an additional transitional measure, a life company must also report to APRA in accordance with Reporting Standard LRS 901 Transitional Arrangements 2008.\n\nInterpretation\n\n18. In this reporting standard:\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays or public holidays;\n\nprincipal executive officer means the principal executive officer of the life company for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity;\n\nreporting period means a reporting period under paragraph 6 or, if applicable, paragraph 7.","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. It requires all registered life insurance companies to report to APRA, in general, on a quarterly and an annual basis in relation to derivatives, commitments and off-balance sheet items.\n\nThis reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items, and the associated instructions (both of which are attached and form part of this reporting standard).","sortOrder":2},{"sectionNumber":"Transitional","sectionType":"part","heading":"Transitional","content":"# Transitional\n\n17. A life company must report in accordance with this reporting standard for any reporting period ending on or after 1 January 2008. However, a life company must also report to APRA in accordance with the Prudential Rules which applied before the commencement of this reporting standard in respect of any reporting period ending before 1 January 2008.\n\nNote: as an additional transitional measure, a life company must also report to APRA in accordance with Reporting Standard LRS 901 Transitional Arrangements 2008.\n\nInterpretation\n\n18. In this reporting standard:\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays or public holidays;\n\nprincipal executive officer means the principal executive officer of the life company for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity;\n\nreporting period means a reporting period under paragraph 6 or, if applicable, paragraph 7.","sortOrder":3},{"sectionNumber":"Reporting Form LRF 210.0","sectionType":"part","heading":"Reporting Form LRF 210.0","content":"# Reporting Form LRF 210.0\n\n# Derivatives, Commitments and Off-Balance Sheet Items\n\n# Instruction Guide\n\n## Introduction\n\nForm LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items (LRF 210.0) provides APRA with the necessary information on the potential effects and values of derivative activity, charges or commitments, and non-market related off-balance sheet transactions on the assets of a statutory fund.\n\nThis Instruction Guide is designed to assist reporting entities in the completion of LRF 210.0. The Instruction Guide provides:\n\n-   general directions and notes regarding preparation and lodgement; and\n-   instructions relating to specific items.\n\n## General directions and notes\n\n### Reporting levels\n\nLRF 210.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed separately for each statutory fund (approved benefit fund), except for a fund solely devoted to investment linked business, in which case the form is not required to be completed.\n\nLRF 210.0 contains three sections:\n\n-   Section A: Statement of Derivative Activity;\n-   Section B: Non-Market Related Off-Balance Sheet Items; and\n-   Section C: Other Off-Balance Transactions, including Charges and Encumbrances.\n\nWithin each section, reporting items are to be completed at total fund level, under the various categories of data required.\n\n### Unit of measurement\n\nLRF 210.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.\n\n### Reporting period\n\nLife companies 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 as at the end of each quarter based on the financial year of the life company, not the calendar year.\n-   The annual information is to be completed as at the end of the financial year of the life company.\n-   The financial information required in this form is to be reported as at the close of business for the last day of the reporting period.\n\n### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’, which is provided as a guide.\n\n## Instructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.\n\n### Section A: Statement of Derivative Activity\n\nThe Statement of Derivative Activity is for information purposes. Life companies should report all derivative instruments held at the reporting date in the principal (or notional) amount column and the fair value column.\n\nThe following sections give examples of the more common derivatives which are traded on exchanges, traded over-the-counter, or not market-traded. This is not intended as an exhaustive list.\n\nLife companies should not generally enter into contracts at off-market prices. This includes historical rate rollovers on foreign exchange contracts. If any contracts are undertaken at off-market prices, life companies should contact APRA to discuss the reasons for such actions. APRA would generally expect that the risk management arrangements for off-market price dealings would be covered in the Risk Management Strategy (RMS) required under Prudential Standard LPS 220 Risk Management.\n\n### Breakdown 1: By trade method\n\nThe following items form the row headings of the Section A table.\n\n### 1. Exchange-Traded Derivatives (traded on recognised exchanges)\n\nDerivatives that are traded on recognised exchanges, as defined in Schedule 7 of the Life Insurance Regulations 1995.\n\nOffsetting positions (e.g. buy a call and write a call with same exercise price and expiry date) can be excluded if both contracts are exchange traded on the same exchange. In all other circumstances, contracts should be reported on a ‘gross’ basis.\n\n### 2. Over-The-Counter Derivatives\n\n-   2.1 Forwards\n-   2.2 Swaps\n-   2.3 Bought option positions\n-   2.4 Written option positions\n-   2.5 Credit derivatives \\- bought protection\n-   2.6 Credit derivatives \\- sold protection\n-   2.7 Other – include all other over-the-counter derivatives not specifically categorised above.\n\n### 3. Total Derivatives \\[derived item\\]\n\nThis item is calculated automatically by the form.\n\n### Breakdown 2: By contract type\n\nFor each category of derivative contract listed below, report the Principal Amount and the Fair Value. Life companies may refer to APRA where they are unclear as to which category is appropriate for a particular derivative when reporting the principal amount and fair value of that derivative.\n\nThe following items form the column headings of the Section A table.\n\n#### Column 1-2: Interest rate contracts\n\nAll instruments that have the objective of managing interest rate risk. Do not include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   single currency interest rate swaps;\n-   basis swaps;\n-   forward rate agreements;\n-   interest rate futures; and\n-   interest rate options purchased.\n\n#### Column 3-4: Foreign exchange contracts (including contracts involving gold)\n\nAll instruments that have the objective of managing foreign exchange risk. Include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   cross currency swaps;\n-   forward foreign exchange contracts;\n-   currency futures;\n-   currency options purchased; and\n-   hedge contracts.\n\nOutstanding spot transactions should be treated as forward foreign exchange contracts.\n\n#### Column 5-6: Equity contracts\n\nAll derivative contracts based on individual equities or equity indices that have the objective of managing equity price risk\n\nInclude:\n\n-   swaps;\n-   forwards;\n-   futures;\n-   purchased options/warrants; and\n\n#### Column 7-8: Other derivative contracts\n\nInclude:\n\n-   credit derivatives;\n-   commodity derivatives; and\n-   any contracts covering other items, that give rise to credit risk.\n\n### Section B: Non-market related off-balance sheet transactions\n\nReport the principal amount of all non-market related off-balance sheet transactions that give rise to credit exposures.\n\nThe categories of non-market related off-balance sheet transactions are as follows:\n\n### 4.1. Direct credit substitutes\n\nAny irrevocable off-balance sheet obligations that carry the same credit risk as a direct extension of credit, such as an undertaking to make a payment to a third party in the event that a counterparty fails to meet a financial obligation, or an undertaking to a counterparty to acquire a potential claim on another party in the event of default by that party, constitutes a direct credit substitute (i.e. the risk of loss depends on the creditworthiness of the counterparty or the party on whom a potential claim is acquired).\n\nInclude:\n\n-   potential credit exposures arising from the issue of guarantees and credit derivatives (credit derivatives where protection is sold);\n-   confirmation of letters of credit;\n-   issue of standby letters of credit serving as financial guarantees for loans, securities and any other financial liabilities; and\n-   bills endorsed under bill endorsement lines (but are not accepted by, or have the prior endorsement of, an ADI).\n\n### 4.2. Performance-related contingencies\n\nContingent liabilities that involve an irrevocable obligation to pay a third party in the event that a counterparty fails to fulfil or perform a contractual non-monetary obligation, such as delivery of goods by a specified date, etc (i.e. the risk of loss depends on a future event that is not directly related to the creditworthiness of the counterparty involved).\n\nInclude:\n\n-   issue of performance bond;\n\n-   bid bonds;\n-   warranties;\n-   indemnities; and\n-   standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction.\n\n### 4.3. Trade\\-related contingencies\n\nContingent liabilities arising from trade-related obligations that are secured against an underlying shipment of goods.\n\nInclude:\n\n-   documentary letters of credit issued;\n\n-   acceptances on trade bills;\n-   shipping guarantees issued; and\n-   any other trade-related contingencies.\n\n### 4.4. Sale & repurchase agreements (‘Repos’)\n\nThis relates to arrangements whereby a life company sells a loan, security or other asset to another party with a commitment to repurchase the asset at an agreed price on an agreed future date.\n\n  \n\n### 4.5. Assets sold with recourse\n\nInclude:\n\n-   any asset sales (to the extent that such assets are not included in on-balance sheet) by a life company where the holder of the asset is entitled to ‘put’ the asset back to the life company within an agreed period or under certain prescribed circumstances, e.g. deterioration in the value or credit quality of the asset concerned.\n\n### 4.6. Forward asset purchases\n\nInclude:\n\n-   commitments to purchase at a future date and on pre-arranged terms; and\n-   a loan, security or other asset from another party, including written put options on specified assets with the character of a credit enhancement.\n\nWhere a life company purchasing the asset has an unequivocal right to substitute cash settlement in place of accepting delivery of the asset, and the price on settlement is calculated with reference to a general market price indicator (and not to the financial condition of any specific entity), the purchase may be treated as a market-related off-balance sheet transaction.\n\nWritten put options expressed in terms of market rates for currencies or financial instruments bearing no credit risk are excluded.\n\n### 4.7. Partly paid shares and securities\n\nInclude:\n\n-   any amounts owing on the uncalled portion of partly paid shares; and\n-   securities that represent commitments with certain draw down by the issuer at a future date.\n\n### 4.8. Placements of forward deposits\n\nThis relates to any agreement between a life company and another party whereby the life company will place a deposit at an agreed rate of interest with that party at a predetermined future date.\n\n### 4.9. Note issuance and revolving underwriting facilities\n\nThis involves arrangements whereby a borrower may draw down funds up to a prescribed limit over a predefined period by making repeated note issues to the market, and where, should the issue prove unable to be placed in the market, the unplaced amount is to be taken up or funds made available by a life company being committed as an underwriter of the facility.\n\n### 4.10. Other commitments\n\n4.10.1. Loans Approved but Not Yet Advanced\n\nReport the principal amount of loans that are approved but not yet drawn.\n\n4.10.2. Any other irrevocable commitments\n\nThe amount of undrawn commitment to be included in calculating life companies’ off-balance sheet non-market related credit exposures is the maximum unused portion of the commitment that could be drawn during the remaining period to maturity. The drawn portion of a commitment forms part of a life company’s on-balance sheet credit exposure.\n\n4.10.3. Commitments that can be unconditionally revoked at any time without notice\n\n### 4.11. All other non-market related off-balance sheet items\n\nFor any non-market related off-balance sheet transactions that give rise to credit risk but are not specifically identified above, a life company should consult APRA on the appropriate counterparty grade to be used for calculating the credit risk component of the resilience reserve for solvency and capital adequacy purposes.\n\n### Section C: Other off-balance sheet transactions\n\n5. Off-balance Sheet Liquidity Support Facilities Contracted for Reporting Entity’s Use\n\nThis section captures information on liquidity support facilities contracted by the life company to supplement its liquidity requirements.\n\n#### Column 1: Approved balance available\n\nInclude:\n\n-   the total approved balance of the facility at the reporting date.\n\n#### Column 2: Undrawn balance available\n\nInclude:\n\n-   the balance of the facility that has not been used or drawn down by the life company at the reporting date.\n\n### 5.2. Standby facilities\n\nThese facilities are approved and committed. These generally require written notice by the life company to trigger draw down (access to the funds).\n\n5.1.1. Facilities with same day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) on the same day that notice is given by the life company of its intention to draw down on the standby facility.\n\n5.1.2 Facilities with 2 \\- 5 day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) within two-five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a two-five day waiting period).\n\n5.1.3. Facilities with greater than 5 days draw down\n\n### Include:\n\n-   those standby facilities that can be drawn down (funds accessed) five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a five day waiting period).\n\n### 5.2. Bill acceptance/discount facilities\n\nThese are another form of liquidity/funding. The funding is provided to the life company by a facility that discounts bills (e.g. bank accepted bills). Principle and interest (discount) owing on the bill is repaid or ‘rolled over’ by the life company on maturity of the bill.\n\n### 5.3. Letter of credit facilities\n\nThis is an irrevocable and unconditional undertaking covering a life company to repay principle and interest of a loan in the event of default by the life company.\n\n### 5.4. Overdrafts\n\nThese are accounts that may be overdrawn up to limits agreed to with an ADI.\n\n### 5.5. Other liquidity support facilities\n\nAll other off-balance sheet liquidity support facilities contracted for the life company’s use that are not included in the categories above.\n\n### 5.6. Total off-balance sheet liquidity support facilities \\[derived item\\]\n\n  \n\n6. Charges and Encumbrances\n\n#### Column 1: Purpose of Charge/Encumbrance\n\nThe purposes are set out in the Life Insurance Act 1995, Sections 38 and 40.\n\n#### Column 2: Type of Charge/Encumbrance\n\nThe following is not an exhaustive list but is provided as an example:\n\n#### Fixed charge\n\nA fixed charge is generally given in relation to a specific asset or assets and it will generally limit the ability or right of the life company to deal with those assets.\n\n#### Floating charge\n\nA floating charge may be given over specific assets or all assets of the life company and may generally only crystallise and become a fixed charge on the occurrence of a specific event that is agreed between the parties (i.e. default on payment, or not maintaining specified interest coverage ratios).\n\n#### Column 3: Principal Value of the charge\n\nThis refers to the principal or face value or amount of the charge or encumbrance given over assets of the life company.\n\n#### Column 4: Outstanding Value of the charge\n\nThis refers to the outstanding value of the charge or encumbrance (as at the reporting date) given over assets of the life company.\n\n#### Column 5: Value of assets subject to the charge\n\nFor each separate charge listed, report in this column the value of the assets that are subject to the charge or encumbrance.\n\n#### Column 6: Extent of Indebtedness Secured By Assets \\[derived item\\]\n\nThis field is automatically calculated. For each separate charge listed, the form will calculate the dollar value to which the assets are charged. It equals the minimum of the value of the assets subject to the charge (column 5) and the outstanding value of the charge granted (column 4).","sortOrder":4},{"sectionNumber":"Instruction Guide","sectionType":"part","heading":"Instruction Guide","content":"# Reporting Form LRF 210.0\n\n# Derivatives, Commitments and Off-Balance Sheet Items\n\n# Instruction Guide\n\n## Introduction\n\nForm LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items (LRF 210.0) provides APRA with the necessary information on the potential effects and values of derivative activity, charges or commitments, and non-market related off-balance sheet transactions on the assets of a statutory fund.\n\nThis Instruction Guide is designed to assist reporting entities in the completion of LRF 210.0. The Instruction Guide provides:\n\n-   general directions and notes regarding preparation and lodgement; and\n-   instructions relating to specific items.\n\n## General directions and notes\n\n### Reporting levels\n\nLRF 210.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed separately for each statutory fund (approved benefit fund), except for a fund solely devoted to investment linked business, in which case the form is not required to be completed.\n\nLRF 210.0 contains three sections:\n\n-   Section A: Statement of Derivative Activity;\n-   Section B: Non-Market Related Off-Balance Sheet Items; and\n-   Section C: Other Off-Balance Transactions, including Charges and Encumbrances.\n\nWithin each section, reporting items are to be completed at total fund level, under the various categories of data required.\n\n### Unit of measurement\n\nLRF 210.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.\n\n### Reporting period\n\nLife companies 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 as at the end of each quarter based on the financial year of the life company, not the calendar year.\n-   The annual information is to be completed as at the end of the financial year of the life company.\n-   The financial information required in this form is to be reported as at the close of business for the last day of the reporting period.\n\n### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’, which is provided as a guide.\n\n## Instructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.\n\n### Section A: Statement of Derivative Activity\n\nThe Statement of Derivative Activity is for information purposes. Life companies should report all derivative instruments held at the reporting date in the principal (or notional) amount column and the fair value column.\n\nThe following sections give examples of the more common derivatives which are traded on exchanges, traded over-the-counter, or not market-traded. This is not intended as an exhaustive list.\n\nLife companies should not generally enter into contracts at off-market prices. This includes historical rate rollovers on foreign exchange contracts. If any contracts are undertaken at off-market prices, life companies should contact APRA to discuss the reasons for such actions. APRA would generally expect that the risk management arrangements for off-market price dealings would be covered in the Risk Management Strategy (RMS) required under Prudential Standard LPS 220 Risk Management.\n\n### Breakdown 1: By trade method\n\nThe following items form the row headings of the Section A table.\n\n### 1. Exchange-Traded Derivatives (traded on recognised exchanges)\n\nDerivatives that are traded on recognised exchanges, as defined in Schedule 7 of the Life Insurance Regulations 1995.\n\nOffsetting positions (e.g. buy a call and write a call with same exercise price and expiry date) can be excluded if both contracts are exchange traded on the same exchange. In all other circumstances, contracts should be reported on a ‘gross’ basis.\n\n### 2. Over-The-Counter Derivatives\n\n-   2.1 Forwards\n-   2.2 Swaps\n-   2.3 Bought option positions\n-   2.4 Written option positions\n-   2.5 Credit derivatives \\- bought protection\n-   2.6 Credit derivatives \\- sold protection\n-   2.7 Other – include all other over-the-counter derivatives not specifically categorised above.\n\n### 3. Total Derivatives \\[derived item\\]\n\nThis item is calculated automatically by the form.\n\n### Breakdown 2: By contract type\n\nFor each category of derivative contract listed below, report the Principal Amount and the Fair Value. Life companies may refer to APRA where they are unclear as to which category is appropriate for a particular derivative when reporting the principal amount and fair value of that derivative.\n\nThe following items form the column headings of the Section A table.\n\n#### Column 1-2: Interest rate contracts\n\nAll instruments that have the objective of managing interest rate risk. Do not include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   single currency interest rate swaps;\n-   basis swaps;\n-   forward rate agreements;\n-   interest rate futures; and\n-   interest rate options purchased.\n\n#### Column 3-4: Foreign exchange contracts (including contracts involving gold)\n\nAll instruments that have the objective of managing foreign exchange risk. Include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   cross currency swaps;\n-   forward foreign exchange contracts;\n-   currency futures;\n-   currency options purchased; and\n-   hedge contracts.\n\nOutstanding spot transactions should be treated as forward foreign exchange contracts.\n\n#### Column 5-6: Equity contracts\n\nAll derivative contracts based on individual equities or equity indices that have the objective of managing equity price risk\n\nInclude:\n\n-   swaps;\n-   forwards;\n-   futures;\n-   purchased options/warrants; and\n\n#### Column 7-8: Other derivative contracts\n\nInclude:\n\n-   credit derivatives;\n-   commodity derivatives; and\n-   any contracts covering other items, that give rise to credit risk.\n\n### Section B: Non-market related off-balance sheet transactions\n\nReport the principal amount of all non-market related off-balance sheet transactions that give rise to credit exposures.\n\nThe categories of non-market related off-balance sheet transactions are as follows:\n\n### 4.1. Direct credit substitutes\n\nAny irrevocable off-balance sheet obligations that carry the same credit risk as a direct extension of credit, such as an undertaking to make a payment to a third party in the event that a counterparty fails to meet a financial obligation, or an undertaking to a counterparty to acquire a potential claim on another party in the event of default by that party, constitutes a direct credit substitute (i.e. the risk of loss depends on the creditworthiness of the counterparty or the party on whom a potential claim is acquired).\n\nInclude:\n\n-   potential credit exposures arising from the issue of guarantees and credit derivatives (credit derivatives where protection is sold);\n-   confirmation of letters of credit;\n-   issue of standby letters of credit serving as financial guarantees for loans, securities and any other financial liabilities; and\n-   bills endorsed under bill endorsement lines (but are not accepted by, or have the prior endorsement of, an ADI).\n\n### 4.2. Performance-related contingencies\n\nContingent liabilities that involve an irrevocable obligation to pay a third party in the event that a counterparty fails to fulfil or perform a contractual non-monetary obligation, such as delivery of goods by a specified date, etc (i.e. the risk of loss depends on a future event that is not directly related to the creditworthiness of the counterparty involved).\n\nInclude:\n\n-   issue of performance bond;\n\n-   bid bonds;\n-   warranties;\n-   indemnities; and\n-   standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction.\n\n### 4.3. Trade\\-related contingencies\n\nContingent liabilities arising from trade-related obligations that are secured against an underlying shipment of goods.\n\nInclude:\n\n-   documentary letters of credit issued;\n\n-   acceptances on trade bills;\n-   shipping guarantees issued; and\n-   any other trade-related contingencies.\n\n### 4.4. Sale & repurchase agreements (‘Repos’)\n\nThis relates to arrangements whereby a life company sells a loan, security or other asset to another party with a commitment to repurchase the asset at an agreed price on an agreed future date.\n\n  \n\n### 4.5. Assets sold with recourse\n\nInclude:\n\n-   any asset sales (to the extent that such assets are not included in on-balance sheet) by a life company where the holder of the asset is entitled to ‘put’ the asset back to the life company within an agreed period or under certain prescribed circumstances, e.g. deterioration in the value or credit quality of the asset concerned.\n\n### 4.6. Forward asset purchases\n\nInclude:\n\n-   commitments to purchase at a future date and on pre-arranged terms; and\n-   a loan, security or other asset from another party, including written put options on specified assets with the character of a credit enhancement.\n\nWhere a life company purchasing the asset has an unequivocal right to substitute cash settlement in place of accepting delivery of the asset, and the price on settlement is calculated with reference to a general market price indicator (and not to the financial condition of any specific entity), the purchase may be treated as a market-related off-balance sheet transaction.\n\nWritten put options expressed in terms of market rates for currencies or financial instruments bearing no credit risk are excluded.\n\n### 4.7. Partly paid shares and securities\n\nInclude:\n\n-   any amounts owing on the uncalled portion of partly paid shares; and\n-   securities that represent commitments with certain draw down by the issuer at a future date.\n\n### 4.8. Placements of forward deposits\n\nThis relates to any agreement between a life company and another party whereby the life company will place a deposit at an agreed rate of interest with that party at a predetermined future date.\n\n### 4.9. Note issuance and revolving underwriting facilities\n\nThis involves arrangements whereby a borrower may draw down funds up to a prescribed limit over a predefined period by making repeated note issues to the market, and where, should the issue prove unable to be placed in the market, the unplaced amount is to be taken up or funds made available by a life company being committed as an underwriter of the facility.\n\n### 4.10. Other commitments\n\n4.10.1. Loans Approved but Not Yet Advanced\n\nReport the principal amount of loans that are approved but not yet drawn.\n\n4.10.2. Any other irrevocable commitments\n\nThe amount of undrawn commitment to be included in calculating life companies’ off-balance sheet non-market related credit exposures is the maximum unused portion of the commitment that could be drawn during the remaining period to maturity. The drawn portion of a commitment forms part of a life company’s on-balance sheet credit exposure.\n\n4.10.3. Commitments that can be unconditionally revoked at any time without notice\n\n### 4.11. All other non-market related off-balance sheet items\n\nFor any non-market related off-balance sheet transactions that give rise to credit risk but are not specifically identified above, a life company should consult APRA on the appropriate counterparty grade to be used for calculating the credit risk component of the resilience reserve for solvency and capital adequacy purposes.\n\n### Section C: Other off-balance sheet transactions\n\n5. Off-balance Sheet Liquidity Support Facilities Contracted for Reporting Entity’s Use\n\nThis section captures information on liquidity support facilities contracted by the life company to supplement its liquidity requirements.\n\n#### Column 1: Approved balance available\n\nInclude:\n\n-   the total approved balance of the facility at the reporting date.\n\n#### Column 2: Undrawn balance available\n\nInclude:\n\n-   the balance of the facility that has not been used or drawn down by the life company at the reporting date.\n\n### 5.2. Standby facilities\n\nThese facilities are approved and committed. These generally require written notice by the life company to trigger draw down (access to the funds).\n\n5.1.1. Facilities with same day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) on the same day that notice is given by the life company of its intention to draw down on the standby facility.\n\n5.1.2 Facilities with 2 \\- 5 day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) within two-five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a two-five day waiting period).\n\n5.1.3. Facilities with greater than 5 days draw down\n\n### Include:\n\n-   those standby facilities that can be drawn down (funds accessed) five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a five day waiting period).\n\n### 5.2. Bill acceptance/discount facilities\n\nThese are another form of liquidity/funding. The funding is provided to the life company by a facility that discounts bills (e.g. bank accepted bills). Principle and interest (discount) owing on the bill is repaid or ‘rolled over’ by the life company on maturity of the bill.\n\n### 5.3. Letter of credit facilities\n\nThis is an irrevocable and unconditional undertaking covering a life company to repay principle and interest of a loan in the event of default by the life company.\n\n### 5.4. Overdrafts\n\nThese are accounts that may be overdrawn up to limits agreed to with an ADI.\n\n### 5.5. Other liquidity support facilities\n\nAll other off-balance sheet liquidity support facilities contracted for the life company’s use that are not included in the categories above.\n\n### 5.6. Total off-balance sheet liquidity support facilities \\[derived item\\]\n\n  \n\n6. Charges and Encumbrances\n\n#### Column 1: Purpose of Charge/Encumbrance\n\nThe purposes are set out in the Life Insurance Act 1995, Sections 38 and 40.\n\n#### Column 2: Type of Charge/Encumbrance\n\nThe following is not an exhaustive list but is provided as an example:\n\n#### Fixed charge\n\nA fixed charge is generally given in relation to a specific asset or assets and it will generally limit the ability or right of the life company to deal with those assets.\n\n#### Floating charge\n\nA floating charge may be given over specific assets or all assets of the life company and may generally only crystallise and become a fixed charge on the occurrence of a specific event that is agreed between the parties (i.e. default on payment, or not maintaining specified interest coverage ratios).\n\n#### Column 3: Principal Value of the charge\n\nThis refers to the principal or face value or amount of the charge or encumbrance given over assets of the life company.\n\n#### Column 4: Outstanding Value of the charge\n\nThis refers to the outstanding value of the charge or encumbrance (as at the reporting date) given over assets of the life company.\n\n#### Column 5: Value of assets subject to the charge\n\nFor each separate charge listed, report in this column the value of the assets that are subject to the charge or encumbrance.\n\n#### Column 6: Extent of Indebtedness Secured By Assets \\[derived item\\]\n\nThis field is automatically calculated. For each separate charge listed, the form will calculate the dollar value to which the assets are charged. It equals the minimum of the value of the assets subject to the charge (column 5) and the outstanding value of the charge granted (column 4).","sortOrder":6},{"sectionNumber":"Introduction","sectionType":"part","heading":"Introduction","content":"## Introduction\n\nForm LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items (LRF 210.0) provides APRA with the necessary information on the potential effects and values of derivative activity, charges or commitments, and non-market related off-balance sheet transactions on the assets of a statutory fund.\n\nThis Instruction Guide is designed to assist reporting entities in the completion of LRF 210.0. The Instruction Guide provides:\n\n-   general directions and notes regarding preparation and lodgement; and\n-   instructions relating to specific items.","sortOrder":7},{"sectionNumber":"General directions and notes","sectionType":"part","heading":"General directions and notes","content":"# Reporting Form LRF 210.0\n\n# Derivatives, Commitments and Off-Balance Sheet Items\n\n# Instruction Guide\n\n## Introduction\n\nForm LRF 210.0 Derivatives, Commitments and Off-Balance Sheet Items (LRF 210.0) provides APRA with the necessary information on the potential effects and values of derivative activity, charges or commitments, and non-market related off-balance sheet transactions on the assets of a statutory fund.\n\nThis Instruction Guide is designed to assist reporting entities in the completion of LRF 210.0. The Instruction Guide provides:\n\n-   general directions and notes regarding preparation and lodgement; and\n-   instructions relating to specific items.\n\n## General directions and notes\n\n### Reporting levels\n\nLRF 210.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed separately for each statutory fund (approved benefit fund), except for a fund solely devoted to investment linked business, in which case the form is not required to be completed.\n\nLRF 210.0 contains three sections:\n\n-   Section A: Statement of Derivative Activity;\n-   Section B: Non-Market Related Off-Balance Sheet Items; and\n-   Section C: Other Off-Balance Transactions, including Charges and Encumbrances.\n\nWithin each section, reporting items are to be completed at total fund level, under the various categories of data required.\n\n### Unit of measurement\n\nLRF 210.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.\n\n### Reporting period\n\nLife companies 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 as at the end of each quarter based on the financial year of the life company, not the calendar year.\n-   The annual information is to be completed as at the end of the financial year of the life company.\n-   The financial information required in this form is to be reported as at the close of business for the last day of the reporting period.\n\n### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’, which is provided as a guide.\n\n## Instructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.\n\n### Section A: Statement of Derivative Activity\n\nThe Statement of Derivative Activity is for information purposes. Life companies should report all derivative instruments held at the reporting date in the principal (or notional) amount column and the fair value column.\n\nThe following sections give examples of the more common derivatives which are traded on exchanges, traded over-the-counter, or not market-traded. This is not intended as an exhaustive list.\n\nLife companies should not generally enter into contracts at off-market prices. This includes historical rate rollovers on foreign exchange contracts. If any contracts are undertaken at off-market prices, life companies should contact APRA to discuss the reasons for such actions. APRA would generally expect that the risk management arrangements for off-market price dealings would be covered in the Risk Management Strategy (RMS) required under Prudential Standard LPS 220 Risk Management.\n\n### Breakdown 1: By trade method\n\nThe following items form the row headings of the Section A table.\n\n### 1. Exchange-Traded Derivatives (traded on recognised exchanges)\n\nDerivatives that are traded on recognised exchanges, as defined in Schedule 7 of the Life Insurance Regulations 1995.\n\nOffsetting positions (e.g. buy a call and write a call with same exercise price and expiry date) can be excluded if both contracts are exchange traded on the same exchange. In all other circumstances, contracts should be reported on a ‘gross’ basis.\n\n### 2. Over-The-Counter Derivatives\n\n-   2.1 Forwards\n-   2.2 Swaps\n-   2.3 Bought option positions\n-   2.4 Written option positions\n-   2.5 Credit derivatives \\- bought protection\n-   2.6 Credit derivatives \\- sold protection\n-   2.7 Other – include all other over-the-counter derivatives not specifically categorised above.\n\n### 3. Total Derivatives \\[derived item\\]\n\nThis item is calculated automatically by the form.\n\n### Breakdown 2: By contract type\n\nFor each category of derivative contract listed below, report the Principal Amount and the Fair Value. Life companies may refer to APRA where they are unclear as to which category is appropriate for a particular derivative when reporting the principal amount and fair value of that derivative.\n\nThe following items form the column headings of the Section A table.\n\n#### Column 1-2: Interest rate contracts\n\nAll instruments that have the objective of managing interest rate risk. Do not include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   single currency interest rate swaps;\n-   basis swaps;\n-   forward rate agreements;\n-   interest rate futures; and\n-   interest rate options purchased.\n\n#### Column 3-4: Foreign exchange contracts (including contracts involving gold)\n\nAll instruments that have the objective of managing foreign exchange risk. Include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   cross currency swaps;\n-   forward foreign exchange contracts;\n-   currency futures;\n-   currency options purchased; and\n-   hedge contracts.\n\nOutstanding spot transactions should be treated as forward foreign exchange contracts.\n\n#### Column 5-6: Equity contracts\n\nAll derivative contracts based on individual equities or equity indices that have the objective of managing equity price risk\n\nInclude:\n\n-   swaps;\n-   forwards;\n-   futures;\n-   purchased options/warrants; and\n\n#### Column 7-8: Other derivative contracts\n\nInclude:\n\n-   credit derivatives;\n-   commodity derivatives; and\n-   any contracts covering other items, that give rise to credit risk.\n\n### Section B: Non-market related off-balance sheet transactions\n\nReport the principal amount of all non-market related off-balance sheet transactions that give rise to credit exposures.\n\nThe categories of non-market related off-balance sheet transactions are as follows:\n\n### 4.1. Direct credit substitutes\n\nAny irrevocable off-balance sheet obligations that carry the same credit risk as a direct extension of credit, such as an undertaking to make a payment to a third party in the event that a counterparty fails to meet a financial obligation, or an undertaking to a counterparty to acquire a potential claim on another party in the event of default by that party, constitutes a direct credit substitute (i.e. the risk of loss depends on the creditworthiness of the counterparty or the party on whom a potential claim is acquired).\n\nInclude:\n\n-   potential credit exposures arising from the issue of guarantees and credit derivatives (credit derivatives where protection is sold);\n-   confirmation of letters of credit;\n-   issue of standby letters of credit serving as financial guarantees for loans, securities and any other financial liabilities; and\n-   bills endorsed under bill endorsement lines (but are not accepted by, or have the prior endorsement of, an ADI).\n\n### 4.2. Performance-related contingencies\n\nContingent liabilities that involve an irrevocable obligation to pay a third party in the event that a counterparty fails to fulfil or perform a contractual non-monetary obligation, such as delivery of goods by a specified date, etc (i.e. the risk of loss depends on a future event that is not directly related to the creditworthiness of the counterparty involved).\n\nInclude:\n\n-   issue of performance bond;\n\n-   bid bonds;\n-   warranties;\n-   indemnities; and\n-   standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction.\n\n### 4.3. Trade\\-related contingencies\n\nContingent liabilities arising from trade-related obligations that are secured against an underlying shipment of goods.\n\nInclude:\n\n-   documentary letters of credit issued;\n\n-   acceptances on trade bills;\n-   shipping guarantees issued; and\n-   any other trade-related contingencies.\n\n### 4.4. Sale & repurchase agreements (‘Repos’)\n\nThis relates to arrangements whereby a life company sells a loan, security or other asset to another party with a commitment to repurchase the asset at an agreed price on an agreed future date.\n\n  \n\n### 4.5. Assets sold with recourse\n\nInclude:\n\n-   any asset sales (to the extent that such assets are not included in on-balance sheet) by a life company where the holder of the asset is entitled to ‘put’ the asset back to the life company within an agreed period or under certain prescribed circumstances, e.g. deterioration in the value or credit quality of the asset concerned.\n\n### 4.6. Forward asset purchases\n\nInclude:\n\n-   commitments to purchase at a future date and on pre-arranged terms; and\n-   a loan, security or other asset from another party, including written put options on specified assets with the character of a credit enhancement.\n\nWhere a life company purchasing the asset has an unequivocal right to substitute cash settlement in place of accepting delivery of the asset, and the price on settlement is calculated with reference to a general market price indicator (and not to the financial condition of any specific entity), the purchase may be treated as a market-related off-balance sheet transaction.\n\nWritten put options expressed in terms of market rates for currencies or financial instruments bearing no credit risk are excluded.\n\n### 4.7. Partly paid shares and securities\n\nInclude:\n\n-   any amounts owing on the uncalled portion of partly paid shares; and\n-   securities that represent commitments with certain draw down by the issuer at a future date.\n\n### 4.8. Placements of forward deposits\n\nThis relates to any agreement between a life company and another party whereby the life company will place a deposit at an agreed rate of interest with that party at a predetermined future date.\n\n### 4.9. Note issuance and revolving underwriting facilities\n\nThis involves arrangements whereby a borrower may draw down funds up to a prescribed limit over a predefined period by making repeated note issues to the market, and where, should the issue prove unable to be placed in the market, the unplaced amount is to be taken up or funds made available by a life company being committed as an underwriter of the facility.\n\n### 4.10. Other commitments\n\n4.10.1. Loans Approved but Not Yet Advanced\n\nReport the principal amount of loans that are approved but not yet drawn.\n\n4.10.2. Any other irrevocable commitments\n\nThe amount of undrawn commitment to be included in calculating life companies’ off-balance sheet non-market related credit exposures is the maximum unused portion of the commitment that could be drawn during the remaining period to maturity. The drawn portion of a commitment forms part of a life company’s on-balance sheet credit exposure.\n\n4.10.3. Commitments that can be unconditionally revoked at any time without notice\n\n### 4.11. All other non-market related off-balance sheet items\n\nFor any non-market related off-balance sheet transactions that give rise to credit risk but are not specifically identified above, a life company should consult APRA on the appropriate counterparty grade to be used for calculating the credit risk component of the resilience reserve for solvency and capital adequacy purposes.\n\n### Section C: Other off-balance sheet transactions\n\n5. Off-balance Sheet Liquidity Support Facilities Contracted for Reporting Entity’s Use\n\nThis section captures information on liquidity support facilities contracted by the life company to supplement its liquidity requirements.\n\n#### Column 1: Approved balance available\n\nInclude:\n\n-   the total approved balance of the facility at the reporting date.\n\n#### Column 2: Undrawn balance available\n\nInclude:\n\n-   the balance of the facility that has not been used or drawn down by the life company at the reporting date.\n\n### 5.2. Standby facilities\n\nThese facilities are approved and committed. These generally require written notice by the life company to trigger draw down (access to the funds).\n\n5.1.1. Facilities with same day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) on the same day that notice is given by the life company of its intention to draw down on the standby facility.\n\n5.1.2 Facilities with 2 \\- 5 day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) within two-five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a two-five day waiting period).\n\n5.1.3. Facilities with greater than 5 days draw down\n\n### Include:\n\n-   those standby facilities that can be drawn down (funds accessed) five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a five day waiting period).\n\n### 5.2. Bill acceptance/discount facilities\n\nThese are another form of liquidity/funding. The funding is provided to the life company by a facility that discounts bills (e.g. bank accepted bills). Principle and interest (discount) owing on the bill is repaid or ‘rolled over’ by the life company on maturity of the bill.\n\n### 5.3. Letter of credit facilities\n\nThis is an irrevocable and unconditional undertaking covering a life company to repay principle and interest of a loan in the event of default by the life company.\n\n### 5.4. Overdrafts\n\nThese are accounts that may be overdrawn up to limits agreed to with an ADI.\n\n### 5.5. Other liquidity support facilities\n\nAll other off-balance sheet liquidity support facilities contracted for the life company’s use that are not included in the categories above.\n\n### 5.6. Total off-balance sheet liquidity support facilities \\[derived item\\]\n\n  \n\n6. Charges and Encumbrances\n\n#### Column 1: Purpose of Charge/Encumbrance\n\nThe purposes are set out in the Life Insurance Act 1995, Sections 38 and 40.\n\n#### Column 2: Type of Charge/Encumbrance\n\nThe following is not an exhaustive list but is provided as an example:\n\n#### Fixed charge\n\nA fixed charge is generally given in relation to a specific asset or assets and it will generally limit the ability or right of the life company to deal with those assets.\n\n#### Floating charge\n\nA floating charge may be given over specific assets or all assets of the life company and may generally only crystallise and become a fixed charge on the occurrence of a specific event that is agreed between the parties (i.e. default on payment, or not maintaining specified interest coverage ratios).\n\n#### Column 3: Principal Value of the charge\n\nThis refers to the principal or face value or amount of the charge or encumbrance given over assets of the life company.\n\n#### Column 4: Outstanding Value of the charge\n\nThis refers to the outstanding value of the charge or encumbrance (as at the reporting date) given over assets of the life company.\n\n#### Column 5: Value of assets subject to the charge\n\nFor each separate charge listed, report in this column the value of the assets that are subject to the charge or encumbrance.\n\n#### Column 6: Extent of Indebtedness Secured By Assets \\[derived item\\]\n\nThis field is automatically calculated. For each separate charge listed, the form will calculate the dollar value to which the assets are charged. It equals the minimum of the value of the assets subject to the charge (column 5) and the outstanding value of the charge granted (column 4).","sortOrder":8},{"sectionNumber":"Reporting levels","sectionType":"division","heading":"Reporting levels","content":"### Reporting levels\n\nLRF 210.0 must be completed by all life insurance companies, including friendly societies.\n\nThe form is to be completed separately for each statutory fund (approved benefit fund), except for a fund solely devoted to investment linked business, in which case the form is not required to be completed.\n\nLRF 210.0 contains three sections:\n\n-   Section A: Statement of Derivative Activity;\n-   Section B: Non-Market Related Off-Balance Sheet Items; and\n-   Section C: Other Off-Balance Transactions, including Charges and Encumbrances.\n\nWithin each section, reporting items are to be completed at total fund level, under the various categories of data required.","sortOrder":9},{"sectionNumber":"Unit of measurement","sectionType":"division","heading":"Unit of measurement","content":"### Unit of measurement\n\nLRF 210.0 is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.","sortOrder":10},{"sectionNumber":"Definitions","sectionType":"division","heading":"Definitions","content":"### Definitions\n\nDefinitions for data reporting items required by this form have been provided where appropriate in the instructions under the section headed ‘Instructions for specific items’.\n\nDefinitions, unless specified, apply to all life insurance companies, including friendly societies as if each reference to a statutory fund, or shareholders’ fund, were a reference to an approved benefit fund, or management fund, respectively. Likewise, reference to shareholders should be taken to embrace ‘members’ of a mutual association and/or a society. The term ‘life companies’ or ‘life insurance companies’ includes friendly societies unless stated otherwise. This is in line with the usage of terms in the Life Insurance Act 1995.","sortOrder":11},{"sectionNumber":"Reporting period","sectionType":"division","heading":"Reporting period","content":"### Reporting period\n\nLife companies 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 as at the end of each quarter based on the financial year of the life company, not the calendar year.\n-   The annual information is to be completed as at the end of the financial year of the life company.\n-   The financial information required in this form is to be reported as at the close of business for the last day of the reporting period.","sortOrder":12},{"sectionNumber":"Basis of preparation","sectionType":"division","heading":"Basis of preparation","content":"### Basis of preparation\n\nIn completing this form, unless specifically stated otherwise, institutions are to follow the basis that is used for the preparation of the annual financial statements in accordance with the Australian accounting standards.\n\nActuarial valuations and calculations included in, or used in the preparation of, the form must be in accordance with prudential standards.\n\nIf additional clarification is required for specific items in this form, reference should be made to the section ‘Instructions for specific items’, which is provided as a guide.","sortOrder":13},{"sectionNumber":"Instructions for specific items","sectionType":"part","heading":"Instructions for specific items","content":"## Instructions for specific items\n\nWhile these instructions apply to all life insurance companies, including friendly societies, not all items may be applicable to both: some items may not be applicable to friendly societies while others may not be applicable to life insurers.","sortOrder":14},{"sectionNumber":"Section A: Statement of Derivative Activ","sectionType":"division","heading":"Section A: Statement of Derivative Activity","content":"### Section A: Statement of Derivative Activity\n\nThe Statement of Derivative Activity is for information purposes. Life companies should report all derivative instruments held at the reporting date in the principal (or notional) amount column and the fair value column.\n\nThe following sections give examples of the more common derivatives which are traded on exchanges, traded over-the-counter, or not market-traded. This is not intended as an exhaustive list.\n\nLife companies should not generally enter into contracts at off-market prices. This includes historical rate rollovers on foreign exchange contracts. If any contracts are undertaken at off-market prices, life companies should contact APRA to discuss the reasons for such actions. APRA would generally expect that the risk management arrangements for off-market price dealings would be covered in the Risk Management Strategy (RMS) required under Prudential Standard LPS 220 Risk Management.","sortOrder":15},{"sectionNumber":"Breakdown 1: By trade method","sectionType":"division","heading":"Breakdown 1: By trade method","content":"### Breakdown 1: By trade method\n\nThe following items form the row headings of the Section A table.","sortOrder":16},{"sectionNumber":"1. Exchange-Traded Derivatives (traded o","sectionType":"division","heading":"1. Exchange-Traded Derivatives (traded on recognised exchanges)","content":"### 1. Exchange-Traded Derivatives (traded on recognised exchanges)\n\nDerivatives that are traded on recognised exchanges, as defined in Schedule 7 of the Life Insurance Regulations 1995.\n\nOffsetting positions (e.g. buy a call and write a call with same exercise price and expiry date) can be excluded if both contracts are exchange traded on the same exchange. In all other circumstances, contracts should be reported on a ‘gross’ basis.","sortOrder":17},{"sectionNumber":"2. Over-The-Counter Derivatives","sectionType":"division","heading":"2. Over-The-Counter Derivatives","content":"### 2. Over-The-Counter Derivatives\n\n-   2.1 Forwards\n-   2.2 Swaps\n-   2.3 Bought option positions\n-   2.4 Written option positions\n-   2.5 Credit derivatives \\- bought protection\n-   2.6 Credit derivatives \\- sold protection\n-   2.7 Other – include all other over-the-counter derivatives not specifically categorised above.","sortOrder":18},{"sectionNumber":"3. Total Derivatives [derived item]","sectionType":"division","heading":"3. Total Derivatives [derived item]","content":"### 3. Total Derivatives \\[derived item\\]\n\nThis item is calculated automatically by the form.","sortOrder":19},{"sectionNumber":"Breakdown 2: By contract type","sectionType":"division","heading":"Breakdown 2: By contract type","content":"### Breakdown 2: By contract type\n\nFor each category of derivative contract listed below, report the Principal Amount and the Fair Value. Life companies may refer to APRA where they are unclear as to which category is appropriate for a particular derivative when reporting the principal amount and fair value of that derivative.\n\nThe following items form the column headings of the Section A table.","sortOrder":20},{"sectionNumber":"Column 1-2: Interest rate contracts","sectionType":"subdivision","heading":"Column 1-2: Interest rate contracts","content":"#### Column 1-2: Interest rate contracts\n\nAll instruments that have the objective of managing interest rate risk. Do not include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   single currency interest rate swaps;\n-   basis swaps;\n-   forward rate agreements;\n-   interest rate futures; and\n-   interest rate options purchased.","sortOrder":21},{"sectionNumber":"Column 3-4: Foreign exchange contracts (","sectionType":"subdivision","heading":"Column 3-4: Foreign exchange contracts (including contracts involving gold)","content":"#### Column 3-4: Foreign exchange contracts (including contracts involving gold)\n\nAll instruments that have the objective of managing foreign exchange risk. Include contracts which manage both interest rate risk and foreign exchange risk.\n\nInclude:\n\n-   cross currency swaps;\n-   forward foreign exchange contracts;\n-   currency futures;\n-   currency options purchased; and\n-   hedge contracts.\n\nOutstanding spot transactions should be treated as forward foreign exchange contracts.","sortOrder":22},{"sectionNumber":"Column 5-6: Equity contracts","sectionType":"subdivision","heading":"Column 5-6: Equity contracts","content":"#### Column 5-6: Equity contracts\n\nAll derivative contracts based on individual equities or equity indices that have the objective of managing equity price risk\n\nInclude:\n\n-   swaps;\n-   forwards;\n-   futures;\n-   purchased options/warrants; and","sortOrder":23},{"sectionNumber":"Column 7-8: Other derivative contracts","sectionType":"subdivision","heading":"Column 7-8: Other derivative contracts","content":"#### Column 7-8: Other derivative contracts\n\nInclude:\n\n-   credit derivatives;\n-   commodity derivatives; and\n-   any contracts covering other items, that give rise to credit risk.","sortOrder":24},{"sectionNumber":"Section B: Non-market related off-balanc","sectionType":"division","heading":"Section B: Non-market related off-balance sheet transactions","content":"### Section B: Non-market related off-balance sheet transactions\n\nReport the principal amount of all non-market related off-balance sheet transactions that give rise to credit exposures.\n\nThe categories of non-market related off-balance sheet transactions are as follows:","sortOrder":25},{"sectionNumber":"4.1. Direct credit substitutes","sectionType":"division","heading":"4.1. Direct credit substitutes","content":"### 4.1. Direct credit substitutes\n\nAny irrevocable off-balance sheet obligations that carry the same credit risk as a direct extension of credit, such as an undertaking to make a payment to a third party in the event that a counterparty fails to meet a financial obligation, or an undertaking to a counterparty to acquire a potential claim on another party in the event of default by that party, constitutes a direct credit substitute (i.e. the risk of loss depends on the creditworthiness of the counterparty or the party on whom a potential claim is acquired).\n\nInclude:\n\n-   potential credit exposures arising from the issue of guarantees and credit derivatives (credit derivatives where protection is sold);\n-   confirmation of letters of credit;\n-   issue of standby letters of credit serving as financial guarantees for loans, securities and any other financial liabilities; and\n-   bills endorsed under bill endorsement lines (but are not accepted by, or have the prior endorsement of, an ADI).","sortOrder":26},{"sectionNumber":"4.2. Performance-related contingencies","sectionType":"division","heading":"4.2. Performance-related contingencies","content":"### 4.2. Performance-related contingencies\n\nContingent liabilities that involve an irrevocable obligation to pay a third party in the event that a counterparty fails to fulfil or perform a contractual non-monetary obligation, such as delivery of goods by a specified date, etc (i.e. the risk of loss depends on a future event that is not directly related to the creditworthiness of the counterparty involved).\n\nInclude:\n\n-   issue of performance bond;\n\n-   bid bonds;\n-   warranties;\n-   indemnities; and\n-   standby letters of credit in relation to a non-monetary obligation of a counterparty under a particular transaction.","sortOrder":27},{"sectionNumber":"4.3. Trade-related contingencies","sectionType":"division","heading":"4.3. Trade-related contingencies","content":"### 4.3. Trade\\-related contingencies\n\nContingent liabilities arising from trade-related obligations that are secured against an underlying shipment of goods.\n\nInclude:\n\n-   documentary letters of credit issued;\n\n-   acceptances on trade bills;\n-   shipping guarantees issued; and\n-   any other trade-related contingencies.","sortOrder":28},{"sectionNumber":"4.4. Sale & repurchase agreements (‘Repo","sectionType":"division","heading":"4.4. Sale & repurchase agreements (‘Repos’)","content":"### 4.4. Sale & repurchase agreements (‘Repos’)\n\nThis relates to arrangements whereby a life company sells a loan, security or other asset to another party with a commitment to repurchase the asset at an agreed price on an agreed future date.","sortOrder":29},{"sectionNumber":"4.5. Assets sold with recourse","sectionType":"division","heading":"4.5. Assets sold with recourse","content":"### 4.5. Assets sold with recourse\n\nInclude:\n\n-   any asset sales (to the extent that such assets are not included in on-balance sheet) by a life company where the holder of the asset is entitled to ‘put’ the asset back to the life company within an agreed period or under certain prescribed circumstances, e.g. deterioration in the value or credit quality of the asset concerned.","sortOrder":30},{"sectionNumber":"4.6. Forward asset purchases","sectionType":"division","heading":"4.6. Forward asset purchases","content":"### 4.6. Forward asset purchases\n\nInclude:\n\n-   commitments to purchase at a future date and on pre-arranged terms; and\n-   a loan, security or other asset from another party, including written put options on specified assets with the character of a credit enhancement.\n\nWhere a life company purchasing the asset has an unequivocal right to substitute cash settlement in place of accepting delivery of the asset, and the price on settlement is calculated with reference to a general market price indicator (and not to the financial condition of any specific entity), the purchase may be treated as a market-related off-balance sheet transaction.\n\nWritten put options expressed in terms of market rates for currencies or financial instruments bearing no credit risk are excluded.","sortOrder":31},{"sectionNumber":"4.7. Partly paid shares and securities","sectionType":"division","heading":"4.7. Partly paid shares and securities","content":"### 4.7. Partly paid shares and securities\n\nInclude:\n\n-   any amounts owing on the uncalled portion of partly paid shares; and\n-   securities that represent commitments with certain draw down by the issuer at a future date.","sortOrder":32},{"sectionNumber":"4.8. Placements of forward deposits","sectionType":"division","heading":"4.8. Placements of forward deposits","content":"### 4.8. Placements of forward deposits\n\nThis relates to any agreement between a life company and another party whereby the life company will place a deposit at an agreed rate of interest with that party at a predetermined future date.","sortOrder":33},{"sectionNumber":"4.9. Note issuance and revolving underwr","sectionType":"division","heading":"4.9. Note issuance and revolving underwriting facilities","content":"### 4.9. Note issuance and revolving underwriting facilities\n\nThis involves arrangements whereby a borrower may draw down funds up to a prescribed limit over a predefined period by making repeated note issues to the market, and where, should the issue prove unable to be placed in the market, the unplaced amount is to be taken up or funds made available by a life company being committed as an underwriter of the facility.","sortOrder":34},{"sectionNumber":"4.10. Other commitments","sectionType":"division","heading":"4.10. Other commitments","content":"### 4.10. Other commitments\n\n4.10.1. Loans Approved but Not Yet Advanced\n\nReport the principal amount of loans that are approved but not yet drawn.\n\n4.10.2. Any other irrevocable commitments\n\nThe amount of undrawn commitment to be included in calculating life companies’ off-balance sheet non-market related credit exposures is the maximum unused portion of the commitment that could be drawn during the remaining period to maturity. The drawn portion of a commitment forms part of a life company’s on-balance sheet credit exposure.\n\n4.10.3. Commitments that can be unconditionally revoked at any time without notice","sortOrder":35},{"sectionNumber":"4.11. All other non-market related off-b","sectionType":"division","heading":"4.11. All other non-market related off-balance sheet items","content":"### 4.11. All other non-market related off-balance sheet items\n\nFor any non-market related off-balance sheet transactions that give rise to credit risk but are not specifically identified above, a life company should consult APRA on the appropriate counterparty grade to be used for calculating the credit risk component of the resilience reserve for solvency and capital adequacy purposes.","sortOrder":36},{"sectionNumber":"Section C: Other off-balance sheet trans","sectionType":"division","heading":"Section C: Other off-balance sheet transactions","content":"### Section C: Other off-balance sheet transactions\n\n5. Off-balance Sheet Liquidity Support Facilities Contracted for Reporting Entity’s Use\n\nThis section captures information on liquidity support facilities contracted by the life company to supplement its liquidity requirements.","sortOrder":37},{"sectionNumber":"Column 1: Approved balance available","sectionType":"subdivision","heading":"Column 1: Approved balance available","content":"#### Column 1: Approved balance available\n\nInclude:\n\n-   the total approved balance of the facility at the reporting date.","sortOrder":38},{"sectionNumber":"Column 2: Undrawn balance available","sectionType":"subdivision","heading":"Column 2: Undrawn balance available","content":"#### Column 2: Undrawn balance available\n\nInclude:\n\n-   the balance of the facility that has not been used or drawn down by the life company at the reporting date.","sortOrder":39},{"sectionNumber":"5.2. Standby facilities","sectionType":"division","heading":"5.2. Standby facilities","content":"### 5.2. Standby facilities\n\nThese facilities are approved and committed. These generally require written notice by the life company to trigger draw down (access to the funds).\n\n5.1.1. Facilities with same day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) on the same day that notice is given by the life company of its intention to draw down on the standby facility.\n\n5.1.2 Facilities with 2 \\- 5 day draw down\n\nInclude:\n\n-   those standby facilities that can be drawn down (funds accessed) within two-five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a two-five day waiting period).\n\n5.1.3. Facilities with greater than 5 days draw down","sortOrder":40},{"sectionNumber":"Include:","sectionType":"division","heading":"Include:","content":"### Include:\n\n-   those standby facilities that can be drawn down (funds accessed) five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a five day waiting period).","sortOrder":41},{"sectionNumber":"5.2. Bill acceptance/discount facilities","sectionType":"division","heading":"5.2. Bill acceptance/discount facilities","content":"### 5.2. Bill acceptance/discount facilities\n\nThese are another form of liquidity/funding. The funding is provided to the life company by a facility that discounts bills (e.g. bank accepted bills). Principle and interest (discount) owing on the bill is repaid or ‘rolled over’ by the life company on maturity of the bill.","sortOrder":42},{"sectionNumber":"5.3. Letter of credit facilities","sectionType":"division","heading":"5.3. Letter of credit facilities","content":"### 5.3. Letter of credit facilities\n\nThis is an irrevocable and unconditional undertaking covering a life company to repay principle and interest of a loan in the event of default by the life company.","sortOrder":43},{"sectionNumber":"5.4. Overdrafts","sectionType":"division","heading":"5.4. Overdrafts","content":"### 5.4. Overdrafts\n\nThese are accounts that may be overdrawn up to limits agreed to with an ADI.","sortOrder":44},{"sectionNumber":"5.5. Other liquidity support facilities","sectionType":"division","heading":"5.5. Other liquidity support facilities","content":"### 5.5. Other liquidity support facilities\n\nAll other off-balance sheet liquidity support facilities contracted for the life company’s use that are not included in the categories above.","sortOrder":45},{"sectionNumber":"5.6. Total off-balance sheet liquidity s","sectionType":"division","heading":"5.6. Total off-balance sheet liquidity support facilities [derived item]","content":"### 5.6. Total off-balance sheet liquidity support facilities \\[derived item\\]\n\n  \n\n6. Charges and Encumbrances","sortOrder":46},{"sectionNumber":"Column 1: Purpose of Charge/Encumbrance","sectionType":"subdivision","heading":"Column 1: Purpose of Charge/Encumbrance","content":"#### Column 1: Purpose of Charge/Encumbrance\n\nThe purposes are set out in the Life Insurance Act 1995, Sections 38 and 40.","sortOrder":47},{"sectionNumber":"Column 2: Type of Charge/Encumbrance","sectionType":"subdivision","heading":"Column 2: Type of Charge/Encumbrance","content":"#### Column 2: Type of Charge/Encumbrance\n\nThe following is not an exhaustive list but is provided as an example:","sortOrder":48},{"sectionNumber":"Fixed charge","sectionType":"subdivision","heading":"Fixed charge","content":"#### Fixed charge\n\nA fixed charge is generally given in relation to a specific asset or assets and it will generally limit the ability or right of the life company to deal with those assets.","sortOrder":49},{"sectionNumber":"Floating charge","sectionType":"subdivision","heading":"Floating charge","content":"#### Floating charge\n\nA floating charge may be given over specific assets or all assets of the life company and may generally only crystallise and become a fixed charge on the occurrence of a specific event that is agreed between the parties (i.e. default on payment, or not maintaining specified interest coverage ratios).","sortOrder":50},{"sectionNumber":"Column 3: Principal Value of the charge","sectionType":"subdivision","heading":"Column 3: Principal Value of the charge","content":"#### Column 3: Principal Value of the charge\n\nThis refers to the principal or face value or amount of the charge or encumbrance given over assets of the life company.","sortOrder":51},{"sectionNumber":"Column 4: Outstanding Value of the charg","sectionType":"subdivision","heading":"Column 4: Outstanding Value of the charge","content":"#### Column 4: Outstanding Value of the charge\n\nThis refers to the outstanding value of the charge or encumbrance (as at the reporting date) given over assets of the life company.","sortOrder":52},{"sectionNumber":"Column 5: Value of assets subject to the","sectionType":"subdivision","heading":"Column 5: Value of assets subject to the charge","content":"#### Column 5: Value of assets subject to the charge\n\nFor each separate charge listed, report in this column the value of the assets that are subject to the charge or encumbrance.","sortOrder":53},{"sectionNumber":"Column 6: Extent of Indebtedness Secured","sectionType":"subdivision","heading":"Column 6: Extent of Indebtedness Secured By Assets [derived item]","content":"#### Column 6: Extent of Indebtedness Secured By Assets \\[derived item\\]\n\nThis field is automatically calculated. For each separate charge listed, the form will calculate the dollar value to which the assets are charged. It equals the minimum of the value of the assets subject to the charge (column 5) and the outstanding value of the charge granted (column 4).","sortOrder":54}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument codifies reporting obligations for all registered life companies (including friendly societies) and specifies fund-level coverage and an investment-linked fund exemption; transitional paragraph preserves previous Prudential Rules for periods before 1 Jan 2008, indicating continuity rather than an expansion or contraction of covered entities. (paras 2, Reporting levels,17)"},"complexity_factors":["Multiple reporting frequencies and deadlines (quarterly unaudited + annual audited) with extension rules (paras 6–9)","Detailed three-part reporting form with many contract-type and trade-method line items (Instruction Guide: Sections A–C)","Fund-level reporting requirement and exemption for investment-linked only funds (Instruction Guide: Reporting levels)","Audit and actuarial conformity obligations for audited returns; allowance for estimates in unaudited submissions (paras 10–13)","Submission methods and digital authorisation requirements (Direct to APRA, digital certificates) and paper-signature alternative (para 5,14)","APRA discretion to change reporting periods/frequency for individual companies and to make minor form/instruction variations (para 7,15–16)","Measurement and presentation rules (AUD in thousands, foreign currency conversion per AASB 121) and derived/automatically-calculated fields (Instruction Guide)","Transitional provisions preserving prior Prudential Rules for periods before 1 Jan 2008 (para 17)"],"plain_english_summary":"Requires all registered life insurers (including friendly societies) to submit Form LRF 210.0 on derivatives, commitments and off‑balance‑sheet items at fund level — quarterly (unaudited) and annually (audited) — to APRA by electronic upload or paper. It takes effect for reporting periods ending on or after 1 January 2008. (paras 2–6,17)\n\nCompliance costs fall on life companies: preparing detailed fund-level returns, following actuarial/accounting bases, auditor review/audit and board authorisation. APRA may vary frequency, grant extensions and make minor form/instruction changes, giving the regulator implementation discretion. (paras 6–14,7,9,15)"},"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2897},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This is the original 2007 determination (No. 21 of 2007) that established the initial reporting framework for derivatives and off-balance sheet items. It introduced new requirements effective 1 January 2008, replacing earlier Prudential Rules, but does not represent a subsequent expansion or alteration of the instrument's original scope."},"complexity_factors":["Technical financial instrument classifications requiring distinction between exchange-traded and over-the-counter derivatives, and sub-categories (forwards, swaps, credit derivatives, etc.)","Eleven distinct categories of non-market related off-balance sheet transactions with specific definitional inclusions and exclusions (e.g., direct credit substitutes, performance bonds, repos, forward asset purchases)","Extensive cross-referencing to external standards including AASB 121 (foreign exchange rates), Life Insurance Regulations 1995 (Schedule 7), and Prudential Standards LPS 220 (Risk Management) and LPS 310 (Audit)","Dual reporting tracks with divergent requirements (quarterly unaudited permitting estimates vs annual audited requiring actuarial valuations)","Transitional provisions requiring parallel reporting under both the new standard and previous Prudential Rules for the transition period"],"plain_english_summary":"This APRA reporting standard requires registered life insurers and friendly societies to file Form LRF 210.0 for each statutory fund (excluding pure investment-linked funds) detailing risky arrangements—derivatives, non‑market off‑balance‑sheet exposures (guarantees, repos, undrawn commitments) and asset charges/encumbrances. Reports are submitted electronically (or on paper) five times a year: quarterly unaudited returns and an audited annual return. The data lets APRA (and designated agencies) monitor solvency and systemic risk and better protect policyholders."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-21-of-2007-lrs-210-0-derivat","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-21-of-2007-lrs-210-0-derivat/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-21-of-2007-lrs-210-0-derivat/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-21-of-2007-lrs-210-0-derivat/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-21-of-2007-lrs-210-0-derivat/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-21-of-2007-lrs-210-0-derivat/documents"}}