{"id":"F2021L00328","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 7 of 2021","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-7-of-2021","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":101532,"registerId":"commonwealth-F2021L00328-current","compilationNumber":null,"startDate":"2026-04-02","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard ARS 114.0","sectionType":"part","heading":"Reporting Standard ARS 114.0","content":"## ![](image.002.png)\n\n## Reporting Standard ARS 114.0\n\n# Standardised Approach – Operational Risk\n\n### Objective of this reporting standard\n\nThis Reporting Standard outlines the overall requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s operational risk regulatory capital. It:\n\n- includes the versions of Reporting Form ARF 114.0 Standardised – Operational Risk designated for an authorised deposit-taking institution reporting at Level 1 and Level 2, and the associated instructions (all of which are attached and form part of this Reporting Standard); and\n- should be read in conjunction with Prudential Standard APS 114 Capital Adequacy: Standardised Approach to Operational Risk.\n\n### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\n# Purpose\n\n2. Data collected in Reporting Form ARF 114.0 Standardised – Operational Risk (ARF 114.0) is used by APRA for the purpose of prudential supervision including assessing compliance with Prudential Standard APS 114 Capital Adequacy: Standardised Approach to Operational Risk (APS 114). It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.\n\n# Application\n\n3. This Reporting Standard applies to an authorised deposit-taking institution (ADI) that satisfies both of the following requirements:\n\n(a) it is applying the standardised approach to operational risk to all or part of its business activities for capital adequacy purposes (refer to APS 114 or Prudential Standard APS 115 Advanced Measurement Approaches to Operational Risk, as appropriate); and\n\n(b) it is included in one of the classes of ADIs to which this Reporting Standard applies, as set out in the table below.\n\n| Class of ADI | Applicable |\n| ---------------------------------------- | ---------- |\n| Bank – advanced or applicant advanced | Yes |\n| Bank – standardised | Yes |\n| Branch of a foreign bank | No |\n| Building society | Yes |\n| Credit union | Yes |\n| Provider of purchased payment facilities | No |\n| Other ADI | Yes |\n\nThis Reporting Standard may also apply to the non-operating holding company (NOHC) of an ADI (refer to paragraph 6).\n\n# Commencement\n\n 4. This Reporting Standard applies for reporting periods commencing on or after 1 April 2021.\n\n# Information required\n\n5. An ADI to which this Reporting Standard applies must provide APRA with the information required by this Reporting Standard 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 this Reporting Standard 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 this Reporting Standard designated for an ADI at Level 2 for each reporting period. In doing so, the immediate parent NOHC must comply with this Reporting Standard (other than paragraphs 5 and 12) as if it were the relevant ADI.\n\n# Forms and method of submission\n\n7. The information required by this Reporting Standard must be given to APRA in electronic format using an electronic method available on APRA’s website or by a method notified by APRA, in writing, prior to submission.\n\n# Reporting periods and due dates\n\n8. Subject to paragraph 9, an ADI to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.\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 Reserve Bank of Australia or the Australian Bureau of Statistics.\n\n10. The information required by this Reporting Standard must be provided to APRA in accordance with the table below. The right hand column of the table sets out the number of business days after the end of the reporting period to which the information relates, within which time information must be submitted to APRA by an ADI in each of the classes set out in the same row in the left hand column.\n\n| Class of ADI | Number of business days |\n| ---------------------------------------- | ----------------------- |\n| Bank – advanced or applicant advanced | 30 |\n| Bank – standardised | 20 |\n| Branch of a foreign bank | Not applicable |\n| Building society | 15 |\n| Credit union | 15 |\n| Provider of purchased payment facilities | Not applicable |\n| Other ADI[1] | 20 |\n\nIn certain cases an ADI will be both a bank – advanced or applicant advanced and a bank – standardised. The instructions associated with ARF 114.0 set out the relevant reporting requirements and timeframes in those circumstances.\n\n11. APRA may grant an ADI an extension of a due date in writing, in which case the new due date for the provision of the information will be the due date specified on the notice of extension.\n\n# Quality control\n\n12. The 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\n13. All information provided by an ADI under this Reporting Standard must be subject to 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\n# Authorisation\n\n14. When an officer of an ADI submits information under this Reporting Standard using a method notified by APRA, the officer must digitally sign the relevant information using a digital certificate or other digital identity credential acceptable to APRA.\n\n# Minor alterations to forms and instructions\n\n15. APRA may make minor variations to:\n\n> (a) a form that is part of this Reporting Standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n16. If APRA makes such a variation it must notify in writing each ADI that is required to report under this Reporting Standard.\n\n# Interpretation\n\n17. In this Reporting Standard:\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\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nauthorised NOHC has the meaning given in the Banking Act 1959.\n\nbank – advanced or applicant advanced means an Australian-owned bank or a foreign subsidiary bank that has APRA’s approval or is seeking APRA’s approval to use an internal ratings-based approach to credit risk and/or an advanced measurement approach to operational risk for capital adequacy purposes.\n\nbank – standardised means an Australian-owned bank or a foreign subsidiary bank that uses the standardised approaches to credit risk and operational risk for capital adequacy purposes in respect of the whole of its operations.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.\n\nclass of ADI means each of the following:\n\n(i) bank – advanced or applicant advanced;\n\n(ii) bank – standardised;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union;\n\n(vi) other ADI; and\n\n(vii) a provider of purchased payment facilities.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and, for the purposes of this Reporting Standard, includes Cairns Penny Savings and Loans Limited.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15%.\n\nimmediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent NOHC within the meaning of paragraph 5 of Prudential Standard APS 001 Definitions(APS 001).\n\nLevel 1 has the meaning in paragraph 5 of APS 001.\n\nLevel 2 has the meaning in paragraph 5 of APS 001.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or Territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union, a foreign subsidiary bank, or a provider of purchased payment facilities, but for the purposes of this Reporting Standard does not include Cairns Penny Savings and Loans Limited.\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, paragraph 9.\n\nstake means a stake determined under the Financial Sector Shareholdings Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).\n\nsubsidiary has the meaning in the Corporations Act 2001.\n\n18. APRA may make a determination 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. In this Reporting Standard, unless the contrary intention appears, a reference to an Act, Regulation, Prudential Standard, Reporting Standard, Australian Accounting Standard or Auditing Standard is a reference to the instrument as in force or existing from time to time.","sortOrder":0},{"sectionNumber":"Standardised Approach — Operational Risk","sectionType":"part","heading":"Standardised Approach — Operational Risk","content":"# Standardised Approach – Operational Risk\n\n### Objective of this reporting standard\n\nThis Reporting Standard outlines the overall requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s operational risk regulatory capital. It:\n\n- includes the versions of Reporting Form ARF 114.0 Standardised – Operational Risk designated for an authorised deposit-taking institution reporting at Level 1 and Level 2, and the associated instructions (all of which are attached and form part of this Reporting Standard); and\n- should be read in conjunction with Prudential Standard APS 114 Capital Adequacy: Standardised Approach to Operational Risk.\n\n### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\n# Purpose\n\n2. Data collected in Reporting Form ARF 114.0 Standardised – Operational Risk (ARF 114.0) is used by APRA for the purpose of prudential supervision including assessing compliance with Prudential Standard APS 114 Capital Adequacy: Standardised Approach to Operational Risk (APS 114). It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.\n\n# Application\n\n3. This Reporting Standard applies to an authorised deposit-taking institution (ADI) that satisfies both of the following requirements:\n\n(a) it is applying the standardised approach to operational risk to all or part of its business activities for capital adequacy purposes (refer to APS 114 or Prudential Standard APS 115 Advanced Measurement Approaches to Operational Risk, as appropriate); and\n\n(b) it is included in one of the classes of ADIs to which this Reporting Standard applies, as set out in the table below.\n\n| Class of ADI | Applicable |\n| ---------------------------------------- | ---------- |\n| Bank – advanced or applicant advanced | Yes |\n| Bank – standardised | Yes |\n| Branch of a foreign bank | No |\n| Building society | Yes |\n| Credit union | Yes |\n| Provider of purchased payment facilities | No |\n| Other ADI | Yes |\n\nThis Reporting Standard may also apply to the non-operating holding company (NOHC) of an ADI (refer to paragraph 6).\n\n# Commencement\n\n 4. This Reporting Standard applies for reporting periods commencing on or after 1 April 2021.\n\n# Information required\n\n5. An ADI to which this Reporting Standard applies must provide APRA with the information required by this Reporting Standard 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 this Reporting Standard 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 this Reporting Standard designated for an ADI at Level 2 for each reporting period. In doing so, the immediate parent NOHC must comply with this Reporting Standard (other than paragraphs 5 and 12) as if it were the relevant ADI.\n\n# Forms and method of submission\n\n7. The information required by this Reporting Standard must be given to APRA in electronic format using an electronic method available on APRA’s website or by a method notified by APRA, in writing, prior to submission.\n\n# Reporting periods and due dates\n\n8. Subject to paragraph 9, an ADI to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.\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 Reserve Bank of Australia or the Australian Bureau of Statistics.\n\n10. The information required by this Reporting Standard must be provided to APRA in accordance with the table below. The right hand column of the table sets out the number of business days after the end of the reporting period to which the information relates, within which time information must be submitted to APRA by an ADI in each of the classes set out in the same row in the left hand column.\n\n| Class of ADI | Number of business days |\n| ---------------------------------------- | ----------------------- |\n| Bank – advanced or applicant advanced | 30 |\n| Bank – standardised | 20 |\n| Branch of a foreign bank | Not applicable |\n| Building society | 15 |\n| Credit union | 15 |\n| Provider of purchased payment facilities | Not applicable |\n| Other ADI[1] | 20 |\n\nIn certain cases an ADI will be both a bank – advanced or applicant advanced and a bank – standardised. The instructions associated with ARF 114.0 set out the relevant reporting requirements and timeframes in those circumstances.\n\n11. APRA may grant an ADI an extension of a due date in writing, in which case the new due date for the provision of the information will be the due date specified on the notice of extension.\n\n# Quality control\n\n12. The 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\n13. All information provided by an ADI under this Reporting Standard must be subject to 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\n# Authorisation\n\n14. When an officer of an ADI submits information under this Reporting Standard using a method notified by APRA, the officer must digitally sign the relevant information using a digital certificate or other digital identity credential acceptable to APRA.\n\n# Minor alterations to forms and instructions\n\n15. APRA may make minor variations to:\n\n> (a) a form that is part of this Reporting Standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n16. If APRA makes such a variation it must notify in writing each ADI that is required to report under this Reporting Standard.\n\n# Interpretation\n\n17. In this Reporting Standard:\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\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nauthorised NOHC has the meaning given in the Banking Act 1959.\n\nbank – advanced or applicant advanced means an Australian-owned bank or a foreign subsidiary bank that has APRA’s approval or is seeking APRA’s approval to use an internal ratings-based approach to credit risk and/or an advanced measurement approach to operational risk for capital adequacy purposes.\n\nbank – standardised means an Australian-owned bank or a foreign subsidiary bank that uses the standardised approaches to credit risk and operational risk for capital adequacy purposes in respect of the whole of its operations.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.\n\nclass of ADI means each of the following:\n\n(i) bank – advanced or applicant advanced;\n\n(ii) bank – standardised;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union;\n\n(vi) other ADI; and\n\n(vii) a provider of purchased payment facilities.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and, for the purposes of this Reporting Standard, includes Cairns Penny Savings and Loans Limited.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15%.\n\nimmediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent NOHC within the meaning of paragraph 5 of Prudential Standard APS 001 Definitions(APS 001).\n\nLevel 1 has the meaning in paragraph 5 of APS 001.\n\nLevel 2 has the meaning in paragraph 5 of APS 001.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or Territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union, a foreign subsidiary bank, or a provider of purchased payment facilities, but for the purposes of this Reporting Standard does not include Cairns Penny Savings and Loans Limited.\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, paragraph 9.\n\nstake means a stake determined under the Financial Sector Shareholdings Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).\n\nsubsidiary has the meaning in the Corporations Act 2001.\n\n18. APRA may make a determination 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. In this Reporting Standard, unless the contrary intention appears, a reference to an Act, Regulation, Prudential Standard, Reporting Standard, Australian Accounting Standard or Auditing Standard is a reference to the instrument as in force or existing from time to time.","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 outlines the overall requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s operational risk regulatory capital. It:\n\n- includes the versions of Reporting Form ARF 114.0 Standardised – Operational Risk designated for an authorised deposit-taking institution reporting at Level 1 and Level 2, and the associated instructions (all of which are attached and form part of this Reporting Standard); and\n- should be read in conjunction with Prudential Standard APS 114 Capital Adequacy: Standardised Approach to Operational Risk.","sortOrder":2},{"sectionNumber":"Authority","sectionType":"division","heading":"Authority","content":"### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.","sortOrder":3},{"sectionNumber":"Purpose","sectionType":"part","heading":"Purpose","content":"# Purpose\n\n2. Data collected in Reporting Form ARF 114.0 Standardised – Operational Risk (ARF 114.0) is used by APRA for the purpose of prudential supervision including assessing compliance with Prudential Standard APS 114 Capital Adequacy: Standardised Approach to Operational Risk (APS 114). It may also be used by the Reserve Bank of Australia and the Australian Bureau of Statistics.","sortOrder":4},{"sectionNumber":"Application","sectionType":"part","heading":"Application","content":"# Application\n\n3. This Reporting Standard applies to an authorised deposit-taking institution (ADI) that satisfies both of the following requirements:\n\n(a) it is applying the standardised approach to operational risk to all or part of its business activities for capital adequacy purposes (refer to APS 114 or Prudential Standard APS 115 Advanced Measurement Approaches to Operational Risk, as appropriate); and\n\n(b) it is included in one of the classes of ADIs to which this Reporting Standard applies, as set out in the table below.\n\n| Class of ADI | Applicable |\n| ---------------------------------------- | ---------- |\n| Bank – advanced or applicant advanced | Yes |\n| Bank – standardised | Yes |\n| Branch of a foreign bank | No |\n| Building society | Yes |\n| Credit union | Yes |\n| Provider of purchased payment facilities | No |\n| Other ADI | Yes |\n\nThis Reporting Standard may also apply to the non-operating holding company (NOHC) of an ADI (refer to paragraph 6).","sortOrder":5},{"sectionNumber":"Commencement","sectionType":"part","heading":"Commencement","content":"# Commencement\n\n 4. This Reporting Standard applies for reporting periods commencing on or after 1 April 2021.","sortOrder":6},{"sectionNumber":"Information required","sectionType":"part","heading":"Information required","content":"# Information required\n\n5. An ADI to which this Reporting Standard applies must provide APRA with the information required by this Reporting Standard 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 this Reporting Standard 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 this Reporting Standard designated for an ADI at Level 2 for each reporting period. In doing so, the immediate parent NOHC must comply with this Reporting Standard (other than paragraphs 5 and 12) as if it were the relevant ADI.","sortOrder":7},{"sectionNumber":"Forms and method of submission","sectionType":"part","heading":"Forms and method of submission","content":"# Forms and method of submission\n\n7. The information required by this Reporting Standard must be given to APRA in electronic format using an electronic method available on APRA’s website or by a method notified by APRA, in writing, prior to submission.","sortOrder":8},{"sectionNumber":"Reporting periods and due dates","sectionType":"part","heading":"Reporting periods and due dates","content":"# Reporting periods and due dates\n\n8. Subject to paragraph 9, an ADI to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the ADI.\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 Reserve Bank of Australia or the Australian Bureau of Statistics.\n\n10. The information required by this Reporting Standard must be provided to APRA in accordance with the table below. The right hand column of the table sets out the number of business days after the end of the reporting period to which the information relates, within which time information must be submitted to APRA by an ADI in each of the classes set out in the same row in the left hand column.\n\n| Class of ADI | Number of business days |\n| ---------------------------------------- | ----------------------- |\n| Bank – advanced or applicant advanced | 30 |\n| Bank – standardised | 20 |\n| Branch of a foreign bank | Not applicable |\n| Building society | 15 |\n| Credit union | 15 |\n| Provider of purchased payment facilities | Not applicable |\n| Other ADI[1] | 20 |\n\nIn certain cases an ADI will be both a bank – advanced or applicant advanced and a bank – standardised. The instructions associated with ARF 114.0 set out the relevant reporting requirements and timeframes in those circumstances.\n\n11. APRA may grant an ADI an extension of a due date in writing, in which case the new due date for the provision of the information will be the due date specified on the notice of extension.","sortOrder":9},{"sectionNumber":"Quality control","sectionType":"part","heading":"Quality control","content":"# Quality control\n\n12. The 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\n13. All information provided by an ADI under this Reporting Standard must be subject to 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.","sortOrder":10},{"sectionNumber":"Authorisation","sectionType":"part","heading":"Authorisation","content":"# Authorisation\n\n14. When an officer of an ADI submits information under this Reporting Standard using a method notified by APRA, the officer must digitally sign the relevant information using a digital certificate or other digital identity credential acceptable to APRA.","sortOrder":11},{"sectionNumber":"Minor alterations to forms and instructi","sectionType":"part","heading":"Minor alterations to forms and instructions","content":"# Minor alterations to forms and instructions\n\n15. APRA may make minor variations to:\n\n> (a) a form that is part of this Reporting Standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions to a form, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n16. If APRA makes such a variation it must notify in writing each ADI that is required to report under this Reporting Standard.","sortOrder":12},{"sectionNumber":"Interpretation","sectionType":"part","heading":"Interpretation","content":"# Interpretation\n\n17. In this Reporting Standard:\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\nAustralian-owned bank means a locally incorporated ADI that assumes or uses the word ‘bank’ in relation to its banking business and is not a foreign subsidiary bank.\n\nauthorised NOHC has the meaning given in the Banking Act 1959.\n\nbank – advanced or applicant advanced means an Australian-owned bank or a foreign subsidiary bank that has APRA’s approval or is seeking APRA’s approval to use an internal ratings-based approach to credit risk and/or an advanced measurement approach to operational risk for capital adequacy purposes.\n\nbank – standardised means an Australian-owned bank or a foreign subsidiary bank that uses the standardised approaches to credit risk and operational risk for capital adequacy purposes in respect of the whole of its operations.\n\nbranch of a foreign bank means a ‘foreign ADI’ as defined in section 5 of the Banking Act 1959.\n\nbuilding society means a locally incorporated ADI that assumes or uses the expression ‘building society’ in relation to its banking business.\n\nbusiness days means ordinary business days, exclusive of Saturdays, Sundays and public holidays.\n\nclass of ADI means each of the following:\n\n(i) bank – advanced or applicant advanced;\n\n(ii) bank – standardised;\n\n(iii) branch of a foreign bank;\n\n(iv) building society;\n\n(v) credit union;\n\n(vi) other ADI; and\n\n(vii) a provider of purchased payment facilities.\n\ncredit union means a locally incorporated ADI that assumes or uses the expression ‘credit union’ in relation to its banking business and, for the purposes of this Reporting Standard, includes Cairns Penny Savings and Loans Limited.\n\nforeign subsidiary bank means a locally incorporated ADI in which a bank that is not locally incorporated has a stake of more than 15%.\n\nimmediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent NOHC within the meaning of paragraph 5 of Prudential Standard APS 001 Definitions(APS 001).\n\nLevel 1 has the meaning in paragraph 5 of APS 001.\n\nLevel 2 has the meaning in paragraph 5 of APS 001.\n\nlocally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or Territory law.\n\nother ADI means an ADI that is not an Australian-owned bank, a branch of a foreign bank, a building society, a credit union, a foreign subsidiary bank, or a provider of purchased payment facilities, but for the purposes of this Reporting Standard does not include Cairns Penny Savings and Loans Limited.\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, paragraph 9.\n\nstake means a stake determined under the Financial Sector Shareholdings Act 1998, as if the only associates that were taken into account under paragraph (b) of subclause 10(1) of the Schedule to that Act were those set out in paragraphs (h), (j) and (l) of subclause 4(1).\n\nsubsidiary has the meaning in the Corporations Act 2001.\n\n18. APRA may make a determination 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. In this Reporting Standard, unless the contrary intention appears, a reference to an Act, Regulation, Prudential Standard, Reporting Standard, Australian Accounting Standard or Auditing Standard is a reference to the instrument as in force or existing from time to time.","sortOrder":13},{"sectionNumber":"Instruction Guide","sectionType":"part","heading":"Instruction Guide","content":"# Instruction Guide\n\nThis instruction guide is designed to assist in the completion of Reporting Form ARF 114.0 Standardised – Operational Risk (ARF 114.0). ARF 114.0 captures the calculation of the capital requirement for operational risk using the standardised approach. In completing ARF 114.0, authorised deposit-taking institutions (ADIs) should refer to Prudential Standard APS 114 Capital Adequacy: Standardised Approach to Operational Risk (APS 114).\n\nGeneral directions and notes\n\nReporting entity\n\nARF 114.0 is to be completed at Level 1 and Level 2[\\[2\\]](#_ftn2) by each ADI that satisfies both of the following paragraphs:\n\n(a) it is applying the standardised approach to operational risk to all or part of its business activities for capital adequacy purposes (refer to APS 114 or Prudential Standard APS 115 Advanced Measurement Approaches to Operational Risk, as appropriate); and\n\n(b) it is included in one of the classes of ADI to which ARF 114.0 applies, as set out in the table below.\n\n| Class of ADI | Reporting required |\n| ---------------------------------------- | ------------------ |\n| Bank – advanced or applicant advanced[3] | Yes |\n| Bank – standardised | Yes |\n| Branch of a foreign bank | No |\n| Building society | Yes |\n| Credit union | Yes |\n| Provider of purchased payment facilities | No |\n| Other ADI | Yes |\n\nIf an ADI is a subsidiary of an authorised non-operating holding company (NOHC), the report at Level 2 is to be provided by the ADI’s immediate parent NOHC.[\\[4\\]](#_ftn4)\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 Prudential Standard APS 120 Securitisation (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; and\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.\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, such assets are to be reported as on-balance sheet in APRA’s regulatory reporting returns.\n\nReporting period and timeframes for lodgement\n\nThe form is to be completed as at the last day of the stated reporting period (i.e. the relevant quarter). The table below specifies the number of business days after the end of the relevant reporting period, within which each class of ADI must submit data to APRA.\n\n| Class of ADI | Number of business days |\n| ---------------------------------------- | ----------------------- |\n| Bank – advanced or applicant advanced | 30 |\n| Bank – standardised | 20 |\n| Branch of a foreign bank | Not applicable |\n| Building society | 15 |\n| Credit union | 15 |\n| Provider of purchased payment facilities | Not applicable |\n| Other ADI[5] | 20 |\n\nAn immediate parent NOHC must submit data to APRA within the same timeframe as its subsidiary ADI.\n\nWhere both bank – standardised and bank – advanced or applicant advanced reporting requirements and timeframes apply to an ADI\n\nIn the following cases an Australian-owned bank or a foreign subsidiary bank must meet reporting requirements and timeframes applicable to both a bank – advanced or applicant advanced and a bank – standardised:\n\n(a) where the ADI is operating under the standardised approach to operational risk under APS 114, but has applied for AMA approval under APS 115, in which case the ADI will be both a bank – advanced or applicant advanced and a bank – standardised; and\n\n(b) where the ADI has received AMA approval under APS 115 in respect of most (but not all) of its operations, and has approval for partial use of the standardised approach under APS 114 for the remainder of its operations.\n\nSuch an ADI must report under ARF 114.0 as follows:\n\n```html\n

Description of bank

Reporting requirement

Timeframes for lodgement

ADI is operating under Basel II[6] APS 114 standardised approach, but has applied for AMA approval for all its operations

Report under the form (for purposes of calculating operational risk component of regulatory capital for all of its operations)

Bank – standardised timeframe (within 20 business days)

ADI is operating under Basel II APS 114 standardised approach, but has applied to adopt AMA approach for most (but not all) of its operations (or APRA has indicated that it does not propose to grant AMA approval in respect of all of the ADI’s operations)

Report under the form (for purposes of calculating operational risk component of regulatory capital for all of its operations)

Bank – standardised timeframe (within 20 business days)

Separately report under the form in respect of operations that will remain under the standardised approach (i.e. partial use) after AMA approval given (for purposes of assessing prospective operational risk component of regulatory capital calculation after AMA approval (i.e. “parallel run” of data))

Bank – advanced or applicant advanced timeframe (within 30 business days)

ADI has AMA approval, but some operations remain under Basel II standardised approach

Report under the form in respect of operations that remain under standardised approach (for purposes of calculating partial use operational risk component of regulatory capital)

Bank – advanced or applicant advanced timeframe (within 30 business days)

\n```\n\nThese ADIs will also have certain reporting obligations under Reporting Forms ARF 115.0A to ARF 115.0C Advanced Measurement Approaches to Operational Risk.\n\nUnit of measurement\n\nARF 114.0 should be completed in Australian dollars (AUD) and in accordance with the units set out for each class of ADI in the table below.\n\n| Class of ADI | Units |\n| ---------------------------------------- | ------------------------------------------------ |\n| Bank – advanced or applicant advanced | Millions of dollars rounded to one decimal place |\n| Bank – standardised | Millions of dollars rounded to one decimal place |\n| Branch of a foreign bank | Not applicable |\n| Building society | Whole dollars with no decimal place |\n| Credit union | Whole dollars with no decimal place |\n| Provider of purchased payment facilities | Not applicable |\n| Other ADI | Whole dollars with no decimal place |\n\nAn immediate parent NOHC must complete ARF 114.0 in AUD and in accordance with the same units as its subsidiary ADI.\n\nAmounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\nSpecific instructions\n\nThe following instructions are applicable at Level 1 and (where relevant) Level 2.\n\nSection A: Operational risk regulatory capital for retail banking\n\nThe operational risk regulatory capital for the retail banking area of business is determined using a proportion of an ADI’s total gross outstanding loans and advances for retail banking as an indicator of the area’s operational risk exposure.\n\n1.1 Total gross outstanding loans and advances for retail banking\n\nReport the last six consecutive half-yearly balances[\\[7\\]](#_ftn7) of total gross outstanding loans and advances for the retail banking area of business.\n\nTotal gross outstanding loans and advances for this area of business is calculated as the total of on-balance sheet exposures to the following items:\n\n(a) cash holdings of notes and coins; and\n\n(b) loans to households comprising:\n\n(i) housing loans;\n\n(ii) revolving credit;\n\n(iii) credit cards;\n\n(iv) leasing; and\n\n(v) other personal term loans (including margin lending facilities).\n\nFor reporting at Level 2, an ADI may map these data items to the relevant on-balance sheet items reported in the version of Reporting Form ARF 112.1A Standardised Credit Risk – On-balance Sheet Assets (ARF 112.1A) designated for an ADI reporting at Level 2.\n\nExclude the balances of loans and advances that meet the operational requirements for regulatory capital relief outlined in APS 120, and are therefore excluded from the calculation of RWA under APS 120.\n\n1.2 Total operational risk regulatory capital for retail banking\n\nDerived field that calculates the total operational risk regulatory capital for the retail banking area of business, in accordance with APS 114.\n\nSection B: Operational risk regulatory capital for commercial banking\n\nThe operational risk regulatory capital for the commercial banking area of business is determined using a proportion of an ADI’s total gross outstanding loans and advances for commercial banking as an indicator of the area’s operational risk exposure.\n\n2.1 Total gross outstanding loans and advances for commercial banking\n\nReport the last six consecutive half-yearly balances[\\[8\\]](#_ftn8) of total gross outstanding loans and advances for the commercial banking area of business.\n\nTotal gross outstanding loans and advances for this area of business is calculated as the total of on-balance sheet exposures to the following items:\n\n(a) amounts, including all deposits, due from financial institutions including:\n\n(i) Reserve Bank of Australia, central banks, banks, other ADIs, Registered Financial Corporations.\n\n(b) gross book value of securities (including all debt securities) held in the banking book (refer to APS 114); and\n\n(c) commercial lending, comprising loans and advances to:\n\n(i) private and public trading corporations;\n\n(ii) private unincorporated businesses and community service organisations;\n\n(iii) ADIs and other financial institutions; and\n\n(iv) government.\n\nFor reporting at Level 2, an ADI may map these data items to the relevant on-balance sheet items reported in the version of ARF 112.1 designated for an ADI reporting at Level 2.\n\nExclude:\n\n(a) funded positions with respect to corporate finance activities (refer to APS 114);\n\n(b) the balances of loans and advances that are excluded from risk-weighted assets under APS 120; and\n\n(c) the gross book value of securities arising from the ADI’s involvement in corporate finance related activities and those that are deducted from capital pursuant to Prudential Standard APS 111 Capital Adequacy: Measurement of Capital.\n\n2.2 Total operational risk regulatory capital for commercial banking\n\nDerived field that calculates the total operational risk regulatory capital for the commercial banking area of business, in accordance with APS 114.\n\nSection C: Operational risk regulatory capital for all other activity\n\nThe operational risk regulatory capital for the all other activity area of business is determined using a proportion of an ADI’s gross income, adjusted to exclude income primarily relating to retail banking and commercial banking (adjusted gross income)[\\[9\\]](#_ftn9) as an indicator of the area’s operational risk exposure.\n\nAn ADI must include, in the all other activity area of business, income (including net interest income and servicing activities) from its involvement in securitisation, trading and corporate finance activities. For trading activities, net income includes profits and losses on instruments held for trading purposes, net of funding costs, plus fees from wholesale broking.\n\nReport the last six consecutive half-yearly amounts[\\[10\\]](#_ftn10) for the following items:\n\n3.1 Total operating income from continuing operations\n\nReport the last six half-yearly balances of total operating income from continuing operations as at the end of each half-year and financial year of the ADI.\n\nLESS\n\nIn this section, items 3.1.1 and 3.1.2 are deducted from item 3.1 to arrive at an adjusted gross income figure in item 3.2.\n\n3.1.1 Adjustments relating to the retail banking and commercial banking areas of business\n\nInclude adjustments primarily relating to the retail banking and commercial banking areas of business. Refer to Prudential Practice Guide APG 114 Standardised Approach to Operational Risk for examples of the types of adjustments that may be made in relation to the retail banking and commercial banking areas of business.\n\n3.1.2 Other adjustments\n\nInclude any other adjustments not already included in item 3.1.1.\n\n3.2 Adjusted gross income\n\nDerived field calculated as item 3.1 less items 3.1.1 and 3.1.2.\n\n3.3 Total operational risk regulatory capital for all other activity\n\nDerived field that calculates the total operational risk regulatory capital for the all other activity area of business, in accordance with APS 114.\n\nSection D: Operational risk regulatory capital summary\n\n4. Total operational risk regulatory capital\n\nDerived field that totals the operational risk regulatory capital for the retail banking, commercial banking and all other activity areas of business, in accordance with APS 114.\n\n5. RWA equivalent amount for operational risk regulatory capital\n\nDerived field that converts the total operational risk regulatory capital to a RWA equivalent amount by multiplying the Total operational risk regulatory capital by 12.5.","sortOrder":14}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2170},"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":false,"description":"The legislation maintains its original scope as a specific reporting standard for operational risk capital under the standardised approach. It does not expand beyond its stated purpose of data collection for prudential supervision."},"complexity_factors":["17 defined terms in the interpretation section, many referencing other prudential standards and legislation","Tiered application matrix with 7 distinct ADI classes having different reporting timeframes (15, 20 or 30 business days) and measurement units (millions vs whole dollars)","Dual reporting framework (Level 1 and Level 2) with complex substitution rules for non-operating holding companies","Technical calculation methodology spanning three business areas (retail banking, commercial banking, and 'all other activity') using different indicators (gross loans vs adjusted gross income)","Extensive cross-referencing to 6+ other prudential standards including APS 114, APS 115, APS 001, APS 310, APS 120 and APS 111","Securitisation deconsolidation principles with conditional carve-outs for special purpose vehicles","External audit attestation requirements for systems and controls under APS 310"],"plain_english_summary":"This regulation requires Australian authorised deposit-taking institutions (banks, building societies and credit unions) using the standardised approach for operational risk to lodge quarterly Form ARF 114.0 with APRA, supplying data APRA uses to assess operational-risk capital adequacy.\n\nReports must be provided at institution and group level, meet varying deadlines by institution type, be digitally signed by senior officers, and have the reporting systems audited annually—so APRA can monitor whether firms hold enough capital against fraud, system failures and other operational losses."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument, read on its face, sets out the current scope: which ADIs and NOHCs must report, the reporting levels, and the quarters of application (Commencement para 4; Application para 3; Information required paras 5–6). The text contains no statement within this document indicating a departure from an earlier scope; using only this source, there is no evidence that the scope has changed from any prior instrument."},"complexity_factors":["Cross-references to multiple prudential and reporting instruments (APS 114, APS 115, APS 120, APS 310, APS 001) creating dependency chains for interpretation (see Purpose para 2; Application para 3; Quality control para 12; Interpretation para 17).","Multiple reporting levels and entity classes (Level 1 vs Level 2; ADI classes: bank advanced/standardised, building societies, credit unions, other ADI, NOHC rules) producing different obligations and mapping rules (Application para 3; Information required paras 5–6; Interpretation para 17).","Variable timetables and APRA discretion to change frequency or grant extensions, which change operational deadlines per ADI class (Reporting periods and due dates paras 8–11; para 9 gives APRA discretion; para 11 extension).","Mandatory external auditor review and ongoing internal control requirements that impose recurring compliance and assurance burdens (Quality control para 12; para 13).","Securitisation deconsolidation principle and mapping rules in the Instruction Guide that affect which exposures are included or excluded for regulatory capital purposes (Instruction Guide, 'Securitisation deconsolidation principle').","Derived calculations and mapping to other ARFs (ARF 112.1/112.1A) and requirement to follow APS 114 formulas for retail, commercial and 'all other' activities (Instruction Guide Sections A–D; Section A 1.1; Section B 2.1; Section C 3.x; Section D 4–5).","Prescribed formats, units, foreign-exchange conversion rules and Level-specific unit rounding that require data normalisation (Instruction Guide 'Unit of measurement').","Electronic submission and digital-signature requirements which create specific IT/identity obligations (Forms and method of submission para 7; Authorisation para 14).","APRA power to make minor variations to forms/instructions without substantive change, requiring reporters to track notifications (Minor alterations paras 15–16)."],"plain_english_summary":"This Reporting Standard requires authorised deposit-taking institutions (ADIs) using the standardised approach to operational risk to submit ARF 114.0 to APRA each quarter (Level 1 and, where applicable, Level 2). APRA prescribes electronic lodgement, timetables, reporting units, auditor review of systems and digital authorisation. APRA states the data will be used for prudential supervision and to assess compliance with APS 114. The rule places compliance costs on ADIs (data collection, controls, external audit) and gives APRA discretion to change frequency, forms or minor instructions."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-7-of-2021","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-7-of-2021/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-7-of-2021/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-7-of-2021/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-7-of-2021/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-7-of-2021/documents"}}