{"id":"F2023L00405","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 51 of 2023","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-51-of-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104080,"registerId":"commonwealth-F2023L00405-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Financial Sector (Collection of Data) (reporting standard) determination No. 51 of 2023","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nFinancial Sector (Collection of Data) (reporting standard) determination No. 51 of 2023\n\nReporting Standard ARS 120.1 Securitisation — Regulatory Capital\n\nFinancial Sector (Collection of Data) Act 2001\n\nI, Michael Murphy, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:\n\n(a) revoke Financial Sector (Collection of Data) (reporting standard) determination No. 16 of 2017, including \\- Reporting Standard ARS 120.1 Securitisation — Regulatory Capital made under that Determination; and\n\n(b) determine Reporting Standard ARS 120.1 Securitisation — Regulatory Capital, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.\n\nUnder section 15 of the Act, I declare that the reporting standard shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on the day it is registered on the Federal Register of Legislation.\n\nThis instrument commences upon registration on the Federal Register of Legislation.\n\nDated: 31 March 2023\n\nMichael Murphy\n\nActing Chief Data Officer\n\nTechnology and Data Division\n\nInterpretation\n\nIn this Determination:\n\nAPRA means the Australian Prudential Regulation Authority.\n\nFederal Register of Legislation means the register established under section 15A of the Legislation Act 2003.\n\nfinancial sector entity has the meaning given by section 5 of the Act.\n\nSchedule\n\nReporting Standard ARS 120.1 Securitisation — Regulatory Capital comprises the document commencing on the following page.\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\nReporting Standard ARS 120.1\n\nSecuritisation — Regulatory Capital\n\nObjective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA in relation to an authorised deposit-taking institution’s securitisation exposures.\n\nIt includes Reporting Form ARF 120.1 Securitisation — Regulatory Capital and should be read in conjunction with Prudential Standard APS 120 Securitisation.\n\nAuthority\n\n1.  This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\nPurpose\n\n2. Information collected in Reporting Form ARF 120.1 Securitisation — Regulatory Capital (ARF 120.1) is used by APRA for the purpose of prudential supervision, including assessing compliance with Prudential Standard APS 120 Securitisation (APS 120). It may also be used by the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS).\n\nApplication and commencement\n\n3. This Reporting Standard applies to all authorised deposit-taking institutions (ADIs), other than foreign ADIs and providers of purchased payment facilities. This Reporting Standard may also apply to the non-operating holding company (NOHC) of an ADI (refer to paragraph 6).\n\n4. This Reporting Standard applies for reporting periods ending on or after 31 March 2023.\n\nInformation required\n\n5. An ADI to which this Reporting Standard applies must provide APRA with the information required by the version of ARF 120.1 designated for an ADI at Level 1 for each reporting period.\n\n6. If an ADI to which this Reporting Standard applies is part of a Level 2 group, the ADI must also provide APRA with the information required by the version of ARF 120.1 designated for an ADI at Level 2 for each reporting period, unless the ADI is a subsidiary of an authorised NOHC. If the ADI is a subsidiary of an authorised NOHC, the ADI’s immediate parent NOHC must provide APRA with the information required by that form for each reporting period. In doing so, the immediate parent NOHC must comply with this Reporting Standard (other than paragraphs 5 and 11) as if it were the relevant ADI.\n\nForms and method of submission\n\n    7. The information required by this Reporting Standard must be given to APRA:\n    (a) in electronic format using an electronic method available on APRA’s website; or\n    (b) by a method notified by APRA in writing prior to submission.\n\nReporting periods and due dates\n\n8. Subject to paragraphs 9 and 10, an ADI to which this Reporting Standard applies must provide the information required by this Reporting Standard within 35 calendar days after the end of each quarter based on the ADI’s financial year (within the meaning of the Corporations Act 2001).\n\n9. APRA may, by notice in writing, change the reporting periods or specified reporting periods for a particular ADI 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 ADI;\n\n(b) the extent to which the information is required for the purposes of the prudential supervision of the ADI; and\n\n(c) the requirements of the RBA or the ABS.\n\n10. APRA may, by notice in writing, extend the due date by which an ADI must provide the information required by this Reporting Standard, in which case the new due date will be the date specified on the notice of extension.\n\nQuality control\n\n11. All information provided by an ADI under this Reporting Standard (except for the information required under paragraph 6) must be the product of systems, processes and controls that have been reviewed and tested by the external auditor of the ADI as set out in Prudential Standard APS 310 Audit and Related Matters. Relevant standards and guidance statements issued by the Auditing and Assurance Standards Board provide information on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if required by the external auditor to enable the external auditor to form an opinion on the accuracy and reliability of the information provided by an ADI under this Reporting Standard.\n\n12. All information provided by an ADI under this Reporting Standard must be subject to systems, processes and controls developed by the ADI for the internal review and authorisation of that information. These systems, processes and controls are to assure the completeness and reliability of the information provided.\n\nAuthorisation\n\n13. When an officer or agent of an ADI provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.\n\nMinor alterations to forms and instructions\n\n14. APRA may make minor variations to:\n\n(a) a form that is part of this Reporting Standard 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\nwithout changing any substantive requirement in the form or instructions.\n\n15. If APRA makes such a variation it will notify, in writing, each ADI that is required to report under this Reporting Standard.\n\nTransition\n\n16. An ADI must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked by the determination that makes this Reporting Standard (being the reporting standard that this Reporting Standard replaces); and\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n(a) that ended before the date of revocation of the old reporting standard; and\n\n(b) in relation to which the ADI was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: For the avoidance of doubt, if an ADI was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the ADI is still required to provide any overdue reporting documents in accordance with the old reporting standard.\n\nInterpretation\n\n17. In this Reporting Standard:\n\nAASB has the meaning in section 9 of the Corporations Act 2001.\n\nADI means an authorised deposit-taking institution within the meaning of the Banking Act 1959.\n\nAPRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.\n\nauthorised NOHC has the meaning given in the Banking Act 1959.\n\nbank means a locally incorporated ADI that is authorised under section 66 of the Banking Act 1959 to use the word ‘bank’ in its name.\n\nforeign ADI has the meaning in section 5 of the Banking Act 1959.\n\nCET1 deduction refers to securitisation exposures that are required to be deducted from Common Equity Tier 1 (CET1) capital in accordance with the requirements under Prudential Standard APS 120 Securitisation.\n\ncredit rating grade means grades of credit ratings to which external credit assessment institution (ECAI) ratings are mapped. The mapping of both short-term and long-term rating grades is contained in Attachment C of Prudential Standard APS 120 Securitisation.\n\ndue diligence requirements means the required due diligence an ADI must perform on its securitisation exposures as per paragraphs 58 and 59 of Prudential Standard APS 120 Securitisation.\n\nexternal ratings-based approach (ERBA) means the method by which an ADI calculates regulatory capital for credit risk for its securitisation exposures, where a securitisation exposure is externally rated or for which an inferred rating is available (refer to paragraphs 4 to 16 of Attachment C of Prudential Standard APS 120 Securitisation).\n\nimmediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent.\n\nLevel 1 has the meaning in Prudential Standard APS 001 Definitions.\n\nLevel 2 has the meaning in Prudential Standard APS 001 Definitions.\n\nnon-senior securitisation exposure has the meaning given to that expression in paragraph 11(n) of Prudential Standard APS 120 Securitisation.\n\nother CET1 regulatory adjustments means:\n\n(a) any gain-on-sale, including expected future income from a securitisation exposure that an ADI reports as an on-balance sheet asset or profit, until irrevocably received;\n\n(b) any funds provided by the ADI to establish a spread, reserve or similar account, until the funds are irrevocably paid to the ADI;\n\n(c) the difference between the book value and amount received by the ADI, where the originating ADI transfers exposures to an SPV below their book value, unless it is written off in the ADI’s profit and loss (and capital) accounts;[\\[1\\]](#_ftn1)\n\n(d) any positive mark-to-market value of a basis swap provided to a securitisation that the ADI has reported as an on-balance sheet asset or profit before it has been irrevocably received;\n\n(e) any negative mark-to-market value of a basis swap where an originating ADI becomes, or is likely to become, a net payer over the life of the swap; and\n\n(f) any other CET1 capital specific deductions required under Prudential Standard APS 120 Securitisation.\n\nprovider of purchased payment facilities means an ADI that is subject to a condition on its authority under section 9 of the Banking Act 1959 confining the banking business that the ADI is authorised to carry on to providing purchased payment facilities.\n\nreporting period means a period mentioned in paragraph 8 or, if applicable, paragraphs 9 and 10.\n\nresecuritisation exposure has the meaning given to that expression in paragraph 11(q) of Prudential Standard APS 120 Securitisation.\n\nrisk-weight cap means the method by which an originating ADI calculates regulatory capital for credit risk for its senior securitisation exposures by determining a risk-weight cap equal to the weighted average risk weight of the underlying exposures in the pool (refer to paragraphs 62 to 64 of Prudential Standard APS 120 Securitisation).\n\nsecuritisation exposure has the meaning given to that expression in paragraph 11(s) of Prudential Standard APS 120 Securitisation.\n\nsecuritisation start-up costs refers to where an ADI contributes to the start-up costs of a securitisation and those costs have been capitalised (rather than written off in the ADI’s profit and loss), and so must be deducted from the ADI’s CET1 capital as per paragraph 27 of Prudential Standard APS 120 Securitisation.\n\nsenior securitisation exposure has the meaning given to that expression in paragraph 11(x) of Prudential Standard APS 120 Securitisation.\n\nsubsidiary has the meaning given in the Corporations Act 2001.\n\nsupervisory formula approach (SFA) means the method by which an ADI calculates regulatory capital for credit risk for its securitisation exposures, (refer to paragraphs 17 to 34 of Attachment C of Prudential Standard APS 120 Securitisation).\n\n18. APRA may determine, in writing, that an individual ADI of one class of ADI is to be treated, for the purposes of this Reporting Standard, as though it was an ADI of another class of ADI.\n\n19. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard, is a reference to the instruments as in force or existing from time to time.\n\n| ARF_120_1: Securitisation — Regulatory Capital |\n| ---------------------------------------------- |\n\n| Australian Business Number | Institution Name                                                                     |\n| -------------------------- | ------------------------------------------------------------------------------------ |\n|                            |                                                                                      |\n| Reporting Period           | Scale Factor                                                                         |\n|                            | Millions to one decimal place for banksWhole dollars no decimal place for other ADIs |\n| Reporting Consolidation    |                                                                                      |\n| Level 1 / Level 2          |                                                                                      |\n\n| Securitisation exposures subject to the External Ratings-based Approach (ERBA) |\n| ------------------------------------------------------------------------------ |\n\n|                                                                    | Exposures | Risk weights % | RWA | CET1 deduction |\n| ------------------------------------------------------------------ | --------- | -------------- | --- | -------------- |\n|                                                                    | (1)       | (2)            | (3) | (4)            |\n| 1.1. Securitisation exposures with short-term credit rating grades |           |                |     |                |\n| 1.1.1. STG1                                                        |           | 15%            |     |                |\n| 1.1.2. STG2                                                        |           | 50%            |     |                |\n| 1.1.3. STG3                                                        |           | 100%           |     |                |\n| 1.1.4. STG4                                                        |           |                |     |                |\n| 1.1.5. Total                                                       |           |                |     |                |\n\n|                                                                                                     | Exposures | RWA | CET1 deduction |\n| --------------------------------------------------------------------------------------------------- | --------- | --- | -------------- |\n|                                                                                                     | (1)       | (2) | (3)            |\n| 1.2. Senior securitisation exposures with long-term credit rating grades resulting in risk weights: |           |     |                |\n| 1.2.1. >=15% to <=20%                                                                               |           |     |                |\n| 1.2.2. >20% to <=50%                                                                                |           |     |                |\n| 1.2.3. >50% to <=100%                                                                               |           |     |                |\n| 1.2.4. >100% to <=140%                                                                              |           |     |                |\n| 1.2.5. >140%                                                                                        |           |     |                |\n| 1.2.6. Total                                                                                        |           |     |                |\n\n|                                                                                                         | Exposures | RWA | CET1 deduction |\n| ------------------------------------------------------------------------------------------------------- | --------- | --- | -------------- |\n|                                                                                                         | (1)       | (2) | (3)            |\n| 1.3. Non-senior securitisation exposures with long-term credit rating grades resulting in risk weights: |           |     |                |\n| 1.3.1. >=15% to <=20%                                                                                   |           |     |                |\n| 1.3.2. >20% to <=50%                                                                                    |           |     |                |\n| 1.3.3. >50% to <=100%                                                                                   |           |     |                |\n| 1.3.4. >100% <=140%                                                                                     |           |     |                |\n| 1.3.5. >140%                                                                                            |           |     |                |\n| 1.3.6. Total                                                                                            |           |     |                |\n\n| 2. Securitisation exposures subject to the Supervisory Formula Approach (SFA) |\n| ----------------------------------------------------------------------------- |\n\n|                         | Exposures | RWA | CET1 deduction |\n| ----------------------- | --------- | --- | -------------- |\n|                         | (1)       | (2) | (3)            |\n| 2.1. With risk weights: |           |     |                |\n| 2.1.1. >=15% to <=20%   |           |     |                |\n| 2.1.2. >20% to <=50%    |           |     |                |\n| 2.1.3. >50% to <=100%   |           |     |                |\n| 2.1.4. >100% to <=250%  |           |     |                |\n| 2.1.5. >250% to <=425%  |           |     |                |\n| 2.1.6. >425% to <=650%  |           |     |                |\n| 2.1.7. >650% to <1250%  |           |     |                |\n| 2.1.8. >=1250%          |           |     |                |\n| 2.1.9. Total            |           |     |                |\n\n| 3. Senior securitisation exposures subject to the risk-weight cap |\n| ----------------------------------------------------------------- |\n\n|                         | Exposures | RWA |\n| ----------------------- | --------- | --- |\n|                         | (1)       | (2) |\n| 3.1. With risk weights: |           |     |\n| 3.1.1. >=15% to <=20%   |           |     |\n| 3.1.2. >20% to <=50%    |           |     |\n| 3.1.3. >50% to <=100%   |           |     |\n| 3.1.4. >100% to <=250%  |           |     |\n| 3.1.5. >250% to <=425%  |           |     |\n| 3.1.6. >425% to <=650%  |           |     |\n| 3.1.7. >650% to <1250%  |           |     |\n| 3.1.8. Total            |           |     |\n\n| 4. Regulatory adjustments |\n| ------------------------- |\n\n|                                                                                            | CET1 deduction |\n| ------------------------------------------------------------------------------------------ | -------------- |\n|                                                                                            | (1)            |\n| 4.1. Senior securitisation exposures where ERBA, SFA or the risk-weight cap cannot be used |                |\n| 4.2. Securitisation exposures that do not meet due diligence requirements                  |                |\n| 4.3. Resecuritisation exposures                                                            |                |\n| 4.4. Other non-senior securitisation exposures                                             |                |\n| 4.5. Securitisation start-up costs                                                         |                |\n| 4.6. Other CET1 regulatory adjustments relating to securitisation                          |                |\n| 4.7. Total                                                                                 |                |\n\nReporting Form ARF 120.1\n\nSecuritisation — Regulatory Capital\n\nInstructions\n\nThis form collects the credit risk-weighted assets (RWA) and adjustments to regulatory capital relating to the securitisation exposures of an authorised deposit-taking institution (ADI). In completing this form, ADIs should refer to Prudential Standard APS 120 Securitisation (APS 120). Information reported on this form is required primarily for prudential purposes.\n\nReporting entity\n\nARF 120.1 must be completed at Level 1 and Level 2 by all ADIs, with the exception of:\n\n(a) branches of foreign banks; and\n\n(b) providers of purchased payment facilities.\n\nIf an ADI is a subsidiary of an authorised NOHC, the report at Level 2 is to be provided by the ADI’s immediate parent NOHC.\n\nSecuritisation deconsolidation principle\n\nExcept as otherwise specified in these instructions, the following applies:\n\n1.  Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that meets APRA’s operational requirements for regulatory capital relief under APS 120:\n\n(a) special purpose vehicles (SPVs) holding securitised assets may be treated as non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes;\n\n(b) the assets, liabilities, revenues and expenses of the relevant SPVs may be excluded from the ADI’s reported amounts in APRA’s regulatory reporting returns; and\n\n(c) the underlying assets (i.e. the pool) under such a securitisation may be excluded from the calculation of the ADI’s regulatory capital (refer to APS 120). However, the ADI must still hold regulatory capital for the securitisation exposures that it retains or acquires and such exposures are to be reported in this form (ARF 120.1). The RWA relating to such securitisation exposures must also be reported in Reporting Form ARF 110.0 Capital Adequacy (ARF 110.0).\n\n2. Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA’s operational requirements for regulatory capital relief under APS 120, or the ADI undertakes a funding-only securitisation or synthetic securitisation, report such assets as on-balance sheet in APRA’s regulatory reporting returns. In addition, these assets must also be reported as a part of the ADI’s total securitised assets within Reporting Form ARF 120.2 Securitisation – Supplementary Items.\n\nReporting basis and units of measurement\n\nReport all items on ARF 120.1 in accordance with Australian Accounting Standards unless otherwise specified.\n\nComplete items on ARF 120.1 excluding exposures held by New Zealand subsidiaries as at the last day of the stated reporting period (i.e. the relevant quarter) and submit to APRA within 35 calendar days of the end of the relevant reporting period.\n\nReport all items in Australian dollars (AUD) and in accordance with the units set out below:\n\n| Class of ADI   | Units                                             |\n| -------------- | ------------------------------------------------- |\n| Bank           | Millions of dollars rounded to one decimal place. |\n| All other ADIs | Whole dollars with no decimal place.              |\n\nAn immediate parent NOHC must complete this form in AUD and in accordance with the same units as its subsidiary ADI.\n\nConvert amounts denominated in foreign currency to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.[\\[2\\]](#_ftn2)\n\nSpecific instructions\n\nThe following instructions are applicable at Level 1 and (where relevant) Level 2. For any on-balance sheet securitisation exposure, report the exposure value net of specific provisions. For any off-balance sheet securitisation exposure, apply a credit conversion factor (CCF) to the exposure amount (including the undrawn amount of a facility, if any) to determine the credit equivalent amount.\n\nUnless otherwise stated, RWA for a securitisation exposure must be calculated by multiplying the securitisation exposure amount by the appropriate risk weight (refer to Attachment C to APS 120). The appropriate risk weights, based on the method used for calculating the capital charge, are detailed in Attachment C of APS 120.\n\nUnless otherwise stated, make regulatory adjustments to capital relating to an ADI’s securitisation exposures to CET1 capital. Regulatory adjustments to capital may be calculated net of any specific provisions raised against the relevant securitisation exposure.\n\nDo not include any securitisation exposures held in the trading book. Report these on Reporting Form ARF 116.0 Market Risk.\n\nAll derived fields in the form are shaded and specified in the instructions below. Terms highlighted in bold italics indicate that the definition is provided in paragraph 16 of this Reporting Standard.\n\nItems 1 to 3 inclusive collect information about the securitisation exposures of an ADI that can be risk-weighted. Do not report any resecuritisation exposure or securitisation exposures which do not meet due diligence requirements in items 1 to 3.\n\nReporting basis: report item 1 to item 3 inclusive as at the end of the reporting period.\n\n| Item 1.1 | Report securitisation exposures subject to the External Ratings-based Approach (ERBA) with a short-term credit rating grade in item 1.1.For items 1.1.1 to 1.1.3, report the total corresponding securitisation exposures in column 1. Risk weights are pre-defined in column 2 in accordance with the weightings detailed in Table 1 of Attachment C of APS 120. RWA in column 3 are derived fields calculated by multiplying securitisation exposures (column 1) by the relevant risk weight (column 2).For item 1.1.4, report all securitisation exposures with a short-term credit rating grade of 4 in column 1 and column 4 CET1 deduction.Item 1.1.5 derives the totals of column 1, column 3 and column 4. |\n| -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| Item 1.2 | Report senior securitisation exposures subject to the ERBA with a long-term credit rating grade in item 1.2. Risk weight buckets are pre-defined.For items 1.2.1 to 1.2.4, report the total corresponding senior securitisation exposures in column 1. Report the aggregate RWA in column 2 against the corresponding risk weight bucket.For item 1.2.5, report all senior securitisation exposures with a long-term credit rating grade and calculated risk weight greater than 140 per cent in column 1 and column 3 CET1 deduction.Item 1.2.6 derives the totals of column 1, column 2 and column 3.                                                                                                            |\n| Item 1.3 | Report non-senior securitisation exposures that can be risk-weighted under the ERBA with a long-term credit rating grade in item 1.3. Risk weight buckets are pre-defined.For items 1.3.1 to 1.3.4, report the total corresponding non-senior securitisation exposures in column 1. Report the aggregate RWA in column 2 against the corresponding risk weight bucket.For item 1.3.5, report all non-senior securitisation exposures with a long-term credit rating grade and calculated risk weight greater than 140 per cent in column 1 and column 3 CET1 deduction.Item 1.3.6 derives the totals of column 1, column 2 and column 3.                                                                           |\n\n| Item 2 | Report securitisation exposures subject to the Supervisory Formula Approach (SFA) in item 2. Risk weight buckets are pre-defined.For items 2.1.1 to 2.1.7, report the total corresponding securitisation exposures in column 1. Report the aggregate RWA in column 2 against the corresponding risk weight bucket.For item 2.1.8, report all securitisation exposures with a calculated risk weight of 1250 per cent or greater in column 1 and column 3 CET1 deduction.Item 2.1.9 derives the totals of column 1, column 2 and column 3. |\n| ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n| Item 3 | Report senior securitisation exposures subject to the risk-weight cap in item 3. Risk weight buckets are pre-defined.For items 3.1.1 to 3.1.7, report the total corresponding senior securitisation exposures in column 1. Report the aggregate RWA in column 2 against the corresponding risk weight bucket.Item 3.1.8 derives the totals of column 1 and column 2. |\n| ------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nItem 4 collects information about all other securitisation exposures of an ADI.\n\nReporting basis: report item 4 as at the end of the reporting period.\n\n| Item 4 | For item 4.1, report all other senior securitisation exposures where the ERBA, SFA or risk-weight cap approaches cannot be used to determine regulatory capital and are therefore required to be deducted from CET1 capital.For item 4.2, report all securitisation exposures which do not meet due diligence requirements.For item 4.3, report all resecuritisation exposures, excluding those that do not meet due diligence requirements and are reported under item 4.2 above.For item 4.4, report all other non-senior securitisation exposures that are required to be deducted from CET1 capital, excluding those that do not meet due diligence requirements reported under item 4.2 above.For item 4.5, report all securitisation start-up costs.For item 4.6, report all other CET1 regulatory adjustments relating to securitisation, excluding any securitisation start-up costs reported under item 4.5 above.Item 4.7 is a derived total of items 4.1 to 4.6. |\n| ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nRelated guidance for reporting in ARF 110.0 Capital Adequacy\n\nFor capital adequacy purposes, report the following items on ARF 120.1 relating to RWA and regulatory adjustments under the corresponding items in ARF 110.0 as set out in the table below:\n\n| Item in ARF 120.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Corresponding item in ARF 110.0                                                                                                     |\n| -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- |\n| Aggregate of the following line items:item 1.1.5 Total column 3 RWA;item 1.2.6 Total column 2 RWA;item 1.3.6 Total column 2 RWA;item 2.1.9 Total column 2 RWA; anditem 3.1.8 Total column 2 RWA.                                                                                                                                                                                                                                                                                                                                                   | Section B, item 1.2. Securitisation                                                                                                 |\n| Item 4.5 Securitisation start-up costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Section A, item 2.6.5 Securitisation start-up costs                                                                                 |\n| Aggregate of the following line items:item 1.1.5 Total column CET1 deduction;item 1.2.6 Total column 3 CET1 deduction;item 1.3.6 Total column 3 CET1 deduction;item 2.1.9 Total column 3 CET1 deduction;item 4.1 senior securitisation exposures where ERBA, SFA or risk weight cap cannot be used;item 4.2 securitisation exposures that do not meet due diligence requirements;item 4.3 resecuritisation exposures;item 4.4 other non-senior securitisation exposures; anditem 4.6 other CET1 regulatory adjustments relating to securitisation. | Section A, item 2.10 Common Equity Tier 1 specific adjustments relating to securitisation (excluding securitisation start-up costs) |\n\n---\n\n[\\[1\\]](#_ftnref1) An originating ADI is not required to deduct from CET1 capital the difference between the book value and the amount received where the ADI has included the underlying exposures in the pool in the calculation of regulatory capital under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112) or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk (APS 113).\n\n[\\[2\\]](#_ftnref2) Made by the AASB under section 334 of the Corporations Act 2001,","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This determination maintains the same scope as its predecessor. It continues to apply to ADIs' securitisation exposures for regulatory capital purposes. While it updates the specific reporting requirements and form structure, it does not expand beyond the original purpose of collecting prudential data on securitisation activities."},"complexity_factors":["19 defined terms in the interpretation section, many of which reference external prudential standards (APS 120, APS 001) and legislation (Banking Act 1959, Corporations Act 2001)","Multiple nested cross-references to Prudential Standard APS 120 Securitisation for substantive definitions (e.g., 'securitisation exposure', 'resecuritisation exposure', 'senior securitisation exposure' all defined by reference to paragraph 11 of APS 120)","Complex conditional logic for reporting consolidation: Level 1 vs Level 2 reporting, with special rules for subsidiaries of authorised NOHCs where the parent company must report instead","Three distinct methodological approaches for calculating capital requirements (ERBA, SFA, risk-weight cap) with different risk weight buckets and thresholds","Detailed form instructions with specific calculation rules, derived fields, and exclusions (e.g., New Zealand subsidiaries excluded, trading book exposures reported elsewhere)","Transition provisions creating overlapping obligations with the old reporting standard for transitional reporting periods","Quality control requirements referencing external auditing standards and Prudential Standard APS 310","Multiple footnotes creating exceptions to exceptions (e.g., footnote 1 regarding book value differences not requiring CET1 deduction under certain conditions)"],"plain_english_summary":"This APRA reporting standard requires Australian banks, ADIs (and their NOHCs) to submit quarterly securitisation exposure data so the regulator can see how much risk is being transferred and how much regulatory capital must be held. By tightening and updating earlier rules, it helps ensure risks from securitisation aren’t hidden off‑balance‑sheet and that institutions hold adequate capital—supporting prudential oversight and financial stability."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"This instrument replaces and updates the prior 2017 reporting determination but does not materially expand the universe of entities required to report or introduce new APRA powers beyond data-collection, timing, quality-control and minor operational discretions. It clarifies and reissues the ARF 120.1 form to align with current Prudential Standard APS 120 (paras 1–2, 3, Schedule), tightens assurance and submission mechanics (paras 7, 11–13), and updates instructions (including deconsolidation guidance). These are substantive modernisations and refinements of reporting content and process, but they retain the original purpose — collecting securitisation data for prudential supervision — rather than significantly broadening scope."},"complexity_factors":["Around 24 defined terms in the Interpretation section (para 17) including multi-part definitions (e.g. 'other CET1 regulatory adjustments' with sub-items a–f).","Extensive cross-references to multiple prudential instruments (APS 120 and its Attachment C; APS 110, APS 112, APS 113, APS 001, APS 310 and AASB standards) throughout the form and instructions.","Multiple conditional reporting paths: Level 1 vs Level 2, NOHC exceptions, subsidiaries, and the special handling where ADIs participate in securitisations that meet/not meet APRA operational requirements.","Nested exceptions and exclusions (e.g. items 1–3 exclude resecuritisation exposures and exposures that do not meet due diligence; separate reporting in item 4) and derived-field calculations.","Pre-defined risk-weight and rating-grade buckets (many numerical bands across ERBA, SFA and risk-weight cap approaches), requiring precise mapping and calculations.","Assurance requirements tying reporting to external audit work (APS 310) plus internal review controls, increasing procedural complexity.","Reporting logistics complexity: differing unit conventions for banks versus other ADIs, foreign-currency conversion rules (AASB 121), electronic submission, and digital-signature authentication."],"plain_english_summary":"**What this instrument does (mechanics)\n\n- Revokes the earlier 2017 reporting determination and replaces Reporting Standard ARS 120.1: Securitisation — Regulatory Capital with an updated reporting standard and form (ARF 120.1). (See opening recital and Schedule.)\n\n- Requires most authorised deposit-taking institutions (ADIs) in Australia (except foreign ADI branches and providers of purchased payment facilities) to supply detailed securitisation data to APRA each reporting period. The data cover securitisation exposures, risk-weighted assets (RWA) and Common Equity Tier 1 (CET1) capital adjustments broken down by the regulatory calculation method used (external ratings-based approach, supervisory formula approach, risk-weight cap, and other regulatory adjustments). (Application and Information required: paras 3, 5; Reporting Form content.)\n\n- Sets timing, format and delivery rules: quarterly reporting for periods ending on or after 31 March 2023 (submit within 35 calendar days of quarter end, unless APRA changes or extends deadlines). Requires electronic submission via APRA’s channel (or other method APRA notifies). (Paras 4, 7–10.)\n\n- Imposes quality and assurance requirements: reported data must be produced by systems, processes and controls reviewed and tested by the ADI’s external auditor (per APS 310) and subject to internal review and authorisation. Electronic submissions must be digitally signed by an authorised officer/agent. (Paras 11–13.)\n\n- Gives APRA limited operational powers over the form: it can make minor, non-substantive corrections or clarifications to the form/instructions and must notify ADIs if it does so. APRA may also change reporting frequency or extend due dates for particular ADIs in writing. (Paras 9, 10, 14–15.)\n\n- Includes transition rules to complete outstanding reports under the revoked standard for any transitional reporting periods. (Para 16.)\n\n- Provides instructions on how APRA treats securitisation special purpose vehicles (SPVs) for regulatory reporting (deconsolidation principle): where APRA’s operational requirements in APS 120 are met, SPV assets may be excluded from the ADI’s regulatory reporting base, but retained securitisation exposures still require capital and must be reported. (Securitisation deconsolidation principle in the Instructions.)\n\n**Who it affects\n\n- Primary reporting obligations fall on ADIs (banks and other deposit-taking institutions) incorporated or operating in Australia, reported at Level 1 and, where relevant, Level 2 consolidated groups. If an ADI is a subsidiary of an authorised non-operating holding company (NOHC), the immediate parent NOHC may provide Level 2 reporting. (Paras 3, 5–6; Instructions.)\n\n- Secondary effects fall on external auditors, in-house finance and risk teams, data and IT teams (to capture and deliver the specified fields), and treasury/ capital managers who use the reported measures for capital planning.\n\n**Why it matters (official purpose and functional test)\n\n- Official purpose: APRA says the data are collected for prudential supervision and to assess compliance with Prudential Standard APS 120 Securitisation; APRA may also share the data with the Reserve Bank of Australia and the ABS. (Para 2.)\n\n- Practical effects and trade-offs:\n  - Who pays: ADIs pay for systems development, ongoing data collection, internal controls, and external audit work to meet the assurance requirement (paras 11–12). Those are recurring compliance costs tied to quarterly reporting cadence (para 8).\n  - Who decides: APRA decides the exact form fields, may change reporting frequency for particular ADIs, and can make minor form adjustments (paras 9, 14). That gives APRA operational discretion over data granularity and timeliness.\n  - Behaviour changes incentivised: ADIs may change securitisation structuring, asset-pooling or the use of SPVs to achieve particular regulatory capital outcomes (the deconsolidation principle and linkage to APS 120 drive this). ADIs will need to apply and evidence due diligence to avoid CET1 deductions (Instructions; Attachment references to APS 120).\n  - Impact on capital and business decisions: the form maps securitisation exposures into defined buckets (ERBA, SFA, risk-weight cap) and CET1 deductions. That mapping affects reported RWA and CET1 adjustments and therefore capital ratios used in lending and pricing decisions (Reporting Form and Related guidance mapping to ARF 110.0).\n  - Compliance and implementation risk: the form cross-references multiple prudential standards (APS 120, APS 110/112/113, APS 310) and requires applying regulatory formulas (ERBA, SFA, risk-weight cap). This raises operational risk for firms calculating and reconciling risk weights and CET1 deductions (Definitions and Instructions, and Attachment references).\n  - Concentrated benefits vs diffuse costs: firms with securitisation expertise or scale may capture benefits from clarified reporting and potential capital relief (via deconsolidation where operational requirements are met), while smaller ADIs face proportionally larger per-unit compliance costs.\n\n**Key operational mechanics to note\n\n- Data granularity: ARF 120.1 collects exposures by rating-grade buckets, risk-weight bands, and flags items that must be deducted from CET1 (form structure and instructions). This requires precise mapping from the ADI’s portfolio to the regulatory buckets.\n\n- Cross-reporting: certain totals reported on ARF 120.1 feed into ARF 110.0 Capital Adequacy for capital adequacy returns (Related guidance table). \n\n- Auditor involvement: external auditors must review and test the systems/processes that produce the reported data at least annually (para 11).\n\n**Selective citations of the instrument**: objective and use (paras 1–2); who reports and scope (paras 3, 5–6); timing and submission (paras 4, 7–10); assurance and authorisation (paras 11–13); minor variations and transition (paras 14–16); deconsolidation principle and instructions (Instructions section).\n\n(End of summary.)"}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-51-of-2023","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-51-of-2023/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-51-of-2023/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-51-of-2023/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-51-of-2023/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-51-of-2023/documents"}}