{"id":"F2007L02099","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 9 of 2007 - MRS 140.3 - Investments - Loans and Advances","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-9-of-2007-mrs-140-3-investme","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":67198,"registerId":"commonwealth-F2007L02099-current","compilationNumber":null,"startDate":"2026-04-02","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Form MRF 140.3","sectionType":"part","heading":"Reporting Form MRF 140.3","content":"# Reporting Form MRF 140.3\n\n# Investments – Loans and Advances\n\n# Instruction Guide\n\n# Introduction\n\nThis form requires Medical Defence Organisations (MDOs) to report information about their investment profile.\n\nReporting Obligations\n\nMDOs are required to report on a half-yearly basis (that is, six monthly intervals), based on their financial year.\n\nFor annual reporting, MDOs must lodge a form within four months of the end of their financial year. The information required on an annual basis must be reported as at the last day of the reporting period on a financial year-to-date basis of the MDO.\n\nFor half-yearly reporting (that is, the half-year that does not correspond with the MDO’s financial year end), MDOs must lodge a form within 20 business days of the end of that six month period.\n\nAudit Requirements\n\nThis form must be subject to audit review and testing on an annual basis or more frequently if necessary to enable the auditor to form an opinion on the accuracy and reliability of the data. The auditor must provide a certificate to the MDO specifying whether, in their opinion, the data provided by the MDO are reliable. The MDO must submit this certificate to APRA on an annual basis.\n\nThe scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board.\n\nDefinitions\n\nDefinitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’.\n\nBasis of Preparation\n\nUnit of Measurement\n\nThis form is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).\n\nAssets\n\nThe aggregate value of investments disclosed in the forms listed below must agree to the total of amounts reported as both current and non-current assets in items 3 and 8\n\nInvestments (relates to the MRF 140 series of forms) of MRF 300.0 Statement of Financial Position (MRF 300.0).\n\n-   MRF 140.0 Investments – Direct Interest Rate Holdings (MRF 140.0)\n-   MRF 140.1 Investments – Direct Equity Holdings (MRF 140.1)\n-   MRF 140.2 Investments – Direct Property Holdings (MRF 140.2)\n-   MRF 140.3 Investments – Loans and Advances (MRF 140.3)\n-   MRF 140.4 Investments – Assets Indirectly Held (MRF 140.4)\n\nHolding of units in unit trusts\n\nWhere the entity’s investments are represented by holdings of units in unlisted or listed managed investment vehicles/entities, the following reporting is required:\n\n-   Units are to be reported in MRF 140.4. This form requires, amongst other things, disclosure of the value of the unit holding according to the nature of the underlying market exposure (i.e. interest rate related, equity related, property related). If the units are held in a diversified or balanced trust, the investment holding is to be disclosed in accordance with the funds advised asset allocation.\n-   Holdings must be disclosed as unlisted or listed units.\n\nSecurities purchased (sold) under agreements to resell (repurchase) and stock lending/borrowing\n\nReporting for the purposes of this return is to be consistent with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139)\n\nWhere the transferee of the security effectively receives a lenders rate of return or a return that does not correlate with ownership of the securities (i.e. the risks and rewards of ownership of the underlying securities is not effectively transferred), these transactions are to be accounted for as collateralised borrowing or lending activities.\n\nUnder this method of accounting for transactions that satisfy the above, do not adjust (i.e. increase or decrease) the physical investment security holdings/portfolios (interest rate and equity investments) for the securities that are subject to these agreements.\n\nSecurities transacted not settled (i.e. trade date accounting)\n\nInclude market-related securities that are recorded on a trade date basis and transacted in accordance with accepted financial market settlements periods. Such securities are to be included in the MRF 140 series. These do not constitute forward asset purchases for the purposes of MRF 130.0 Off Balance Sheet Business – Direct Credit Substitutes Provided (MRF 130.0).\n\nRelated party/entity\n\nRelated parties/entities are to be interpreted in accordance with AASB 124 Related Party Disclosures (AASB 124) .\n\nParent\n\nParent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).\n\nSubsidiaries\n\nSubsidiaries are to be interpreted in accordance with AASB 127.\n\nAssociates\n\nAssociates are to be interpreted in accordance with AASB 128 Investments in Associates (AASB 128).\n\nJoint ventures\n\nJoint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures (AASB 131).\n\nSpecific Instructions\n\nLoans and advances are treated for the purposes of this form as investments of the MDO. Generally include:\n\n-   overdrafts and revolving credit facilities;\n-   financial lease agreements;\n-   term loans;\n-   mortgage lending;\n-   commercial loans;\n-   equity participation in leveraged leases;\n-   subordinated loans; and\n-   secured and unsecured lending.\n\nBalance outstanding (column 1)\n\nReport the aggregate value of the outstanding loans gross of any provision for impairment for each loan classifications listed.\n\nValue of security (column 2)\n\nReport the aggregate fair value of property or other forms of assets that are taken as security for the loan provided by the MDO.\n\nProvision for impairment (column 3)\n\nReport the aggregate provision for impairment applying to the particular loan portfolio/classifications listed.\n\nFor the purposes of this form, impairment means that there exists reasonable doubt that amounts of principal (or fair value) and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the MDO.\n\nBalance outstanding net of provision (column 4)\n\nRepresents the outstanding balance less associated provision for impairment.\n\n1.  Loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n1.1 Households\n\nThis comprises loans to households for any purpose.\n\n1.2 Private unincorporated businesses\n\nThis comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.\n\n1.3 Private trading corporations\n\nPrivate trading corporations are those owned and controlled by the private sector. Include:\n\n-   non-profit institutions;\n-   intra-group financiers, retailers and parent companies with significant holdings of shares in private trading companies;\n-   privately owned schools and hospitals;\n-   any unincorporated unit that is a branch in Australia of a non-resident company; and\n-   any unincorporated business owned and operated by trading corporations (e.g. joint ventures).\n\n1.4 Other\n\nInclude all other loans and advances not disclosed on the form.\n\n2. Total loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n2.1 Are contracted at fixed rates\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a fixed interest rate.\n\n2.2 Are contracted at a variable rate\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a variable interest rate.\n\n2.3 Are contracted on an unsecured basis\n\nOf the total loans and advances of the MDO, disclose the value of any loans and advances where the MDO has taken no security from the counterparty.\n\n2.4 Repayment is past due date 90 days or more but less than 1 year\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 90 days or more, but less than 1 year.\n\n2.5 Repayment is past due date 1 year or more\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 1 year or more.\n\n3. Total Loans and advances\n\nReport all loans and advances accordance to the applicable counterparty grade (and maturity where applicable) as detailed on the form (refer items 3.1-3.5). The grades are detailed at Attachment 1.\n\nAlso report the aggregate balance of loans and advances that are denominated in a currency other than the Australian currency (refer item 3.6).\n\n4. Total loans and advances\n\nReport all loans and advances to related entities in accordance with the categories detailed on the form.\n\nATTACHMENT 1: Counterparty Grades\n\n| Grade | Standard & Poor’s | Moody’s      | AM Best    | Fitch        |\n| ----- | ----------------- | ------------ | ---------- | ------------ |\n| 1     | AAA               | Aaa          | A++        | AAA          |\n| 2     | AA+AAAA-          | Aa1Aa2Aa3    | A+         | AA+AAAA-     |\n| 3     | A+AA-             | A1A2A3       | AA-        | A+AA-        |\n| 4     | BBB+BBBBBB-       | Baa1Baa2Baa3 | B++B+      | BBB+BBBBBB-  |\n| 5     | BB+ or below      | Ba1 or below | B or below | BB+ or below |\n\nUnrated assets or exposures should be classified as Grade 4.\n\nAn MDO must, in general, use the same rating agency for determining counterparty grades. An MDO may depart from this general rule where there are good reasons for doing so, such as under the following circumstances:\n\nWhere the rating agencies usually monitored by the insurer do not issue a solicited credit rating for a particular debt obligation and only one other rating agency issues a solicited credit rating for that debt obligation, the MDO may use that solicited credit rating.","sortOrder":0},{"sectionNumber":"Investments — Loans and Advances","sectionType":"part","heading":"Investments — Loans and Advances","content":"# Reporting Form MRF 140.3\n\n# Investments – Loans and Advances\n\n# Instruction Guide\n\n# Introduction\n\nThis form requires Medical Defence Organisations (MDOs) to report information about their investment profile.\n\nReporting Obligations\n\nMDOs are required to report on a half-yearly basis (that is, six monthly intervals), based on their financial year.\n\nFor annual reporting, MDOs must lodge a form within four months of the end of their financial year. The information required on an annual basis must be reported as at the last day of the reporting period on a financial year-to-date basis of the MDO.\n\nFor half-yearly reporting (that is, the half-year that does not correspond with the MDO’s financial year end), MDOs must lodge a form within 20 business days of the end of that six month period.\n\nAudit Requirements\n\nThis form must be subject to audit review and testing on an annual basis or more frequently if necessary to enable the auditor to form an opinion on the accuracy and reliability of the data. The auditor must provide a certificate to the MDO specifying whether, in their opinion, the data provided by the MDO are reliable. The MDO must submit this certificate to APRA on an annual basis.\n\nThe scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board.\n\nDefinitions\n\nDefinitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’.\n\nBasis of Preparation\n\nUnit of Measurement\n\nThis form is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).\n\nAssets\n\nThe aggregate value of investments disclosed in the forms listed below must agree to the total of amounts reported as both current and non-current assets in items 3 and 8\n\nInvestments (relates to the MRF 140 series of forms) of MRF 300.0 Statement of Financial Position (MRF 300.0).\n\n-   MRF 140.0 Investments – Direct Interest Rate Holdings (MRF 140.0)\n-   MRF 140.1 Investments – Direct Equity Holdings (MRF 140.1)\n-   MRF 140.2 Investments – Direct Property Holdings (MRF 140.2)\n-   MRF 140.3 Investments – Loans and Advances (MRF 140.3)\n-   MRF 140.4 Investments – Assets Indirectly Held (MRF 140.4)\n\nHolding of units in unit trusts\n\nWhere the entity’s investments are represented by holdings of units in unlisted or listed managed investment vehicles/entities, the following reporting is required:\n\n-   Units are to be reported in MRF 140.4. This form requires, amongst other things, disclosure of the value of the unit holding according to the nature of the underlying market exposure (i.e. interest rate related, equity related, property related). If the units are held in a diversified or balanced trust, the investment holding is to be disclosed in accordance with the funds advised asset allocation.\n-   Holdings must be disclosed as unlisted or listed units.\n\nSecurities purchased (sold) under agreements to resell (repurchase) and stock lending/borrowing\n\nReporting for the purposes of this return is to be consistent with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139)\n\nWhere the transferee of the security effectively receives a lenders rate of return or a return that does not correlate with ownership of the securities (i.e. the risks and rewards of ownership of the underlying securities is not effectively transferred), these transactions are to be accounted for as collateralised borrowing or lending activities.\n\nUnder this method of accounting for transactions that satisfy the above, do not adjust (i.e. increase or decrease) the physical investment security holdings/portfolios (interest rate and equity investments) for the securities that are subject to these agreements.\n\nSecurities transacted not settled (i.e. trade date accounting)\n\nInclude market-related securities that are recorded on a trade date basis and transacted in accordance with accepted financial market settlements periods. Such securities are to be included in the MRF 140 series. These do not constitute forward asset purchases for the purposes of MRF 130.0 Off Balance Sheet Business – Direct Credit Substitutes Provided (MRF 130.0).\n\nRelated party/entity\n\nRelated parties/entities are to be interpreted in accordance with AASB 124 Related Party Disclosures (AASB 124) .\n\nParent\n\nParent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).\n\nSubsidiaries\n\nSubsidiaries are to be interpreted in accordance with AASB 127.\n\nAssociates\n\nAssociates are to be interpreted in accordance with AASB 128 Investments in Associates (AASB 128).\n\nJoint ventures\n\nJoint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures (AASB 131).\n\nSpecific Instructions\n\nLoans and advances are treated for the purposes of this form as investments of the MDO. Generally include:\n\n-   overdrafts and revolving credit facilities;\n-   financial lease agreements;\n-   term loans;\n-   mortgage lending;\n-   commercial loans;\n-   equity participation in leveraged leases;\n-   subordinated loans; and\n-   secured and unsecured lending.\n\nBalance outstanding (column 1)\n\nReport the aggregate value of the outstanding loans gross of any provision for impairment for each loan classifications listed.\n\nValue of security (column 2)\n\nReport the aggregate fair value of property or other forms of assets that are taken as security for the loan provided by the MDO.\n\nProvision for impairment (column 3)\n\nReport the aggregate provision for impairment applying to the particular loan portfolio/classifications listed.\n\nFor the purposes of this form, impairment means that there exists reasonable doubt that amounts of principal (or fair value) and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the MDO.\n\nBalance outstanding net of provision (column 4)\n\nRepresents the outstanding balance less associated provision for impairment.\n\n1.  Loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n1.1 Households\n\nThis comprises loans to households for any purpose.\n\n1.2 Private unincorporated businesses\n\nThis comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.\n\n1.3 Private trading corporations\n\nPrivate trading corporations are those owned and controlled by the private sector. Include:\n\n-   non-profit institutions;\n-   intra-group financiers, retailers and parent companies with significant holdings of shares in private trading companies;\n-   privately owned schools and hospitals;\n-   any unincorporated unit that is a branch in Australia of a non-resident company; and\n-   any unincorporated business owned and operated by trading corporations (e.g. joint ventures).\n\n1.4 Other\n\nInclude all other loans and advances not disclosed on the form.\n\n2. Total loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n2.1 Are contracted at fixed rates\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a fixed interest rate.\n\n2.2 Are contracted at a variable rate\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a variable interest rate.\n\n2.3 Are contracted on an unsecured basis\n\nOf the total loans and advances of the MDO, disclose the value of any loans and advances where the MDO has taken no security from the counterparty.\n\n2.4 Repayment is past due date 90 days or more but less than 1 year\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 90 days or more, but less than 1 year.\n\n2.5 Repayment is past due date 1 year or more\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 1 year or more.\n\n3. Total Loans and advances\n\nReport all loans and advances accordance to the applicable counterparty grade (and maturity where applicable) as detailed on the form (refer items 3.1-3.5). The grades are detailed at Attachment 1.\n\nAlso report the aggregate balance of loans and advances that are denominated in a currency other than the Australian currency (refer item 3.6).\n\n4. Total loans and advances\n\nReport all loans and advances to related entities in accordance with the categories detailed on the form.\n\nATTACHMENT 1: Counterparty Grades\n\n| Grade | Standard & Poor’s | Moody’s      | AM Best    | Fitch        |\n| ----- | ----------------- | ------------ | ---------- | ------------ |\n| 1     | AAA               | Aaa          | A++        | AAA          |\n| 2     | AA+AAAA-          | Aa1Aa2Aa3    | A+         | AA+AAAA-     |\n| 3     | A+AA-             | A1A2A3       | AA-        | A+AA-        |\n| 4     | BBB+BBBBBB-       | Baa1Baa2Baa3 | B++B+      | BBB+BBBBBB-  |\n| 5     | BB+ or below      | Ba1 or below | B or below | BB+ or below |\n\nUnrated assets or exposures should be classified as Grade 4.\n\nAn MDO must, in general, use the same rating agency for determining counterparty grades. An MDO may depart from this general rule where there are good reasons for doing so, such as under the following circumstances:\n\nWhere the rating agencies usually monitored by the insurer do not issue a solicited credit rating for a particular debt obligation and only one other rating agency issues a solicited credit rating for that debt obligation, the MDO may use that solicited credit rating.","sortOrder":1},{"sectionNumber":"Instruction Guide","sectionType":"part","heading":"Instruction Guide","content":"# Reporting Form MRF 140.3\n\n# Investments – Loans and Advances\n\n# Instruction Guide\n\n# Introduction\n\nThis form requires Medical Defence Organisations (MDOs) to report information about their investment profile.\n\nReporting Obligations\n\nMDOs are required to report on a half-yearly basis (that is, six monthly intervals), based on their financial year.\n\nFor annual reporting, MDOs must lodge a form within four months of the end of their financial year. The information required on an annual basis must be reported as at the last day of the reporting period on a financial year-to-date basis of the MDO.\n\nFor half-yearly reporting (that is, the half-year that does not correspond with the MDO’s financial year end), MDOs must lodge a form within 20 business days of the end of that six month period.\n\nAudit Requirements\n\nThis form must be subject to audit review and testing on an annual basis or more frequently if necessary to enable the auditor to form an opinion on the accuracy and reliability of the data. The auditor must provide a certificate to the MDO specifying whether, in their opinion, the data provided by the MDO are reliable. The MDO must submit this certificate to APRA on an annual basis.\n\nThe scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board.\n\nDefinitions\n\nDefinitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’.\n\nBasis of Preparation\n\nUnit of Measurement\n\nThis form is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).\n\nAssets\n\nThe aggregate value of investments disclosed in the forms listed below must agree to the total of amounts reported as both current and non-current assets in items 3 and 8\n\nInvestments (relates to the MRF 140 series of forms) of MRF 300.0 Statement of Financial Position (MRF 300.0).\n\n-   MRF 140.0 Investments – Direct Interest Rate Holdings (MRF 140.0)\n-   MRF 140.1 Investments – Direct Equity Holdings (MRF 140.1)\n-   MRF 140.2 Investments – Direct Property Holdings (MRF 140.2)\n-   MRF 140.3 Investments – Loans and Advances (MRF 140.3)\n-   MRF 140.4 Investments – Assets Indirectly Held (MRF 140.4)\n\nHolding of units in unit trusts\n\nWhere the entity’s investments are represented by holdings of units in unlisted or listed managed investment vehicles/entities, the following reporting is required:\n\n-   Units are to be reported in MRF 140.4. This form requires, amongst other things, disclosure of the value of the unit holding according to the nature of the underlying market exposure (i.e. interest rate related, equity related, property related). If the units are held in a diversified or balanced trust, the investment holding is to be disclosed in accordance with the funds advised asset allocation.\n-   Holdings must be disclosed as unlisted or listed units.\n\nSecurities purchased (sold) under agreements to resell (repurchase) and stock lending/borrowing\n\nReporting for the purposes of this return is to be consistent with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139)\n\nWhere the transferee of the security effectively receives a lenders rate of return or a return that does not correlate with ownership of the securities (i.e. the risks and rewards of ownership of the underlying securities is not effectively transferred), these transactions are to be accounted for as collateralised borrowing or lending activities.\n\nUnder this method of accounting for transactions that satisfy the above, do not adjust (i.e. increase or decrease) the physical investment security holdings/portfolios (interest rate and equity investments) for the securities that are subject to these agreements.\n\nSecurities transacted not settled (i.e. trade date accounting)\n\nInclude market-related securities that are recorded on a trade date basis and transacted in accordance with accepted financial market settlements periods. Such securities are to be included in the MRF 140 series. These do not constitute forward asset purchases for the purposes of MRF 130.0 Off Balance Sheet Business – Direct Credit Substitutes Provided (MRF 130.0).\n\nRelated party/entity\n\nRelated parties/entities are to be interpreted in accordance with AASB 124 Related Party Disclosures (AASB 124) .\n\nParent\n\nParent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).\n\nSubsidiaries\n\nSubsidiaries are to be interpreted in accordance with AASB 127.\n\nAssociates\n\nAssociates are to be interpreted in accordance with AASB 128 Investments in Associates (AASB 128).\n\nJoint ventures\n\nJoint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures (AASB 131).\n\nSpecific Instructions\n\nLoans and advances are treated for the purposes of this form as investments of the MDO. Generally include:\n\n-   overdrafts and revolving credit facilities;\n-   financial lease agreements;\n-   term loans;\n-   mortgage lending;\n-   commercial loans;\n-   equity participation in leveraged leases;\n-   subordinated loans; and\n-   secured and unsecured lending.\n\nBalance outstanding (column 1)\n\nReport the aggregate value of the outstanding loans gross of any provision for impairment for each loan classifications listed.\n\nValue of security (column 2)\n\nReport the aggregate fair value of property or other forms of assets that are taken as security for the loan provided by the MDO.\n\nProvision for impairment (column 3)\n\nReport the aggregate provision for impairment applying to the particular loan portfolio/classifications listed.\n\nFor the purposes of this form, impairment means that there exists reasonable doubt that amounts of principal (or fair value) and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the MDO.\n\nBalance outstanding net of provision (column 4)\n\nRepresents the outstanding balance less associated provision for impairment.\n\n1.  Loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n1.1 Households\n\nThis comprises loans to households for any purpose.\n\n1.2 Private unincorporated businesses\n\nThis comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.\n\n1.3 Private trading corporations\n\nPrivate trading corporations are those owned and controlled by the private sector. Include:\n\n-   non-profit institutions;\n-   intra-group financiers, retailers and parent companies with significant holdings of shares in private trading companies;\n-   privately owned schools and hospitals;\n-   any unincorporated unit that is a branch in Australia of a non-resident company; and\n-   any unincorporated business owned and operated by trading corporations (e.g. joint ventures).\n\n1.4 Other\n\nInclude all other loans and advances not disclosed on the form.\n\n2. Total loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n2.1 Are contracted at fixed rates\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a fixed interest rate.\n\n2.2 Are contracted at a variable rate\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a variable interest rate.\n\n2.3 Are contracted on an unsecured basis\n\nOf the total loans and advances of the MDO, disclose the value of any loans and advances where the MDO has taken no security from the counterparty.\n\n2.4 Repayment is past due date 90 days or more but less than 1 year\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 90 days or more, but less than 1 year.\n\n2.5 Repayment is past due date 1 year or more\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 1 year or more.\n\n3. Total Loans and advances\n\nReport all loans and advances accordance to the applicable counterparty grade (and maturity where applicable) as detailed on the form (refer items 3.1-3.5). The grades are detailed at Attachment 1.\n\nAlso report the aggregate balance of loans and advances that are denominated in a currency other than the Australian currency (refer item 3.6).\n\n4. Total loans and advances\n\nReport all loans and advances to related entities in accordance with the categories detailed on the form.\n\nATTACHMENT 1: Counterparty Grades\n\n| Grade | Standard & Poor’s | Moody’s      | AM Best    | Fitch        |\n| ----- | ----------------- | ------------ | ---------- | ------------ |\n| 1     | AAA               | Aaa          | A++        | AAA          |\n| 2     | AA+AAAA-          | Aa1Aa2Aa3    | A+         | AA+AAAA-     |\n| 3     | A+AA-             | A1A2A3       | AA-        | A+AA-        |\n| 4     | BBB+BBBBBB-       | Baa1Baa2Baa3 | B++B+      | BBB+BBBBBB-  |\n| 5     | BB+ or below      | Ba1 or below | B or below | BB+ or below |\n\nUnrated assets or exposures should be classified as Grade 4.\n\nAn MDO must, in general, use the same rating agency for determining counterparty grades. An MDO may depart from this general rule where there are good reasons for doing so, such as under the following circumstances:\n\nWhere the rating agencies usually monitored by the insurer do not issue a solicited credit rating for a particular debt obligation and only one other rating agency issues a solicited credit rating for that debt obligation, the MDO may use that solicited credit rating.","sortOrder":2},{"sectionNumber":"Introduction","sectionType":"part","heading":"Introduction","content":"# Introduction\n\nThis form requires Medical Defence Organisations (MDOs) to report information about their investment profile.\n\nReporting Obligations\n\nMDOs are required to report on a half-yearly basis (that is, six monthly intervals), based on their financial year.\n\nFor annual reporting, MDOs must lodge a form within four months of the end of their financial year. The information required on an annual basis must be reported as at the last day of the reporting period on a financial year-to-date basis of the MDO.\n\nFor half-yearly reporting (that is, the half-year that does not correspond with the MDO’s financial year end), MDOs must lodge a form within 20 business days of the end of that six month period.\n\nAudit Requirements\n\nThis form must be subject to audit review and testing on an annual basis or more frequently if necessary to enable the auditor to form an opinion on the accuracy and reliability of the data. The auditor must provide a certificate to the MDO specifying whether, in their opinion, the data provided by the MDO are reliable. The MDO must submit this certificate to APRA on an annual basis.\n\nThe scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board.\n\nDefinitions\n\nDefinitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’.\n\nBasis of Preparation\n\nUnit of Measurement\n\nThis form is to be prepared in thousands of Australian dollars (AUD). Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).\n\nAssets\n\nThe aggregate value of investments disclosed in the forms listed below must agree to the total of amounts reported as both current and non-current assets in items 3 and 8\n\nInvestments (relates to the MRF 140 series of forms) of MRF 300.0 Statement of Financial Position (MRF 300.0).\n\n-   MRF 140.0 Investments – Direct Interest Rate Holdings (MRF 140.0)\n-   MRF 140.1 Investments – Direct Equity Holdings (MRF 140.1)\n-   MRF 140.2 Investments – Direct Property Holdings (MRF 140.2)\n-   MRF 140.3 Investments – Loans and Advances (MRF 140.3)\n-   MRF 140.4 Investments – Assets Indirectly Held (MRF 140.4)\n\nHolding of units in unit trusts\n\nWhere the entity’s investments are represented by holdings of units in unlisted or listed managed investment vehicles/entities, the following reporting is required:\n\n-   Units are to be reported in MRF 140.4. This form requires, amongst other things, disclosure of the value of the unit holding according to the nature of the underlying market exposure (i.e. interest rate related, equity related, property related). If the units are held in a diversified or balanced trust, the investment holding is to be disclosed in accordance with the funds advised asset allocation.\n-   Holdings must be disclosed as unlisted or listed units.\n\nSecurities purchased (sold) under agreements to resell (repurchase) and stock lending/borrowing\n\nReporting for the purposes of this return is to be consistent with AASB 139 Financial Instruments: Recognition and Measurement (AASB 139)\n\nWhere the transferee of the security effectively receives a lenders rate of return or a return that does not correlate with ownership of the securities (i.e. the risks and rewards of ownership of the underlying securities is not effectively transferred), these transactions are to be accounted for as collateralised borrowing or lending activities.\n\nUnder this method of accounting for transactions that satisfy the above, do not adjust (i.e. increase or decrease) the physical investment security holdings/portfolios (interest rate and equity investments) for the securities that are subject to these agreements.\n\nSecurities transacted not settled (i.e. trade date accounting)\n\nInclude market-related securities that are recorded on a trade date basis and transacted in accordance with accepted financial market settlements periods. Such securities are to be included in the MRF 140 series. These do not constitute forward asset purchases for the purposes of MRF 130.0 Off Balance Sheet Business – Direct Credit Substitutes Provided (MRF 130.0).\n\nRelated party/entity\n\nRelated parties/entities are to be interpreted in accordance with AASB 124 Related Party Disclosures (AASB 124) .\n\nParent\n\nParent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).\n\nSubsidiaries\n\nSubsidiaries are to be interpreted in accordance with AASB 127.\n\nAssociates\n\nAssociates are to be interpreted in accordance with AASB 128 Investments in Associates (AASB 128).\n\nJoint ventures\n\nJoint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures (AASB 131).\n\nSpecific Instructions\n\nLoans and advances are treated for the purposes of this form as investments of the MDO. Generally include:\n\n-   overdrafts and revolving credit facilities;\n-   financial lease agreements;\n-   term loans;\n-   mortgage lending;\n-   commercial loans;\n-   equity participation in leveraged leases;\n-   subordinated loans; and\n-   secured and unsecured lending.\n\nBalance outstanding (column 1)\n\nReport the aggregate value of the outstanding loans gross of any provision for impairment for each loan classifications listed.\n\nValue of security (column 2)\n\nReport the aggregate fair value of property or other forms of assets that are taken as security for the loan provided by the MDO.\n\nProvision for impairment (column 3)\n\nReport the aggregate provision for impairment applying to the particular loan portfolio/classifications listed.\n\nFor the purposes of this form, impairment means that there exists reasonable doubt that amounts of principal (or fair value) and any associated amounts of accrued income (e.g. interest, dividends, distributions associated with the investment/asset) will be able to be collected by the MDO.\n\nBalance outstanding net of provision (column 4)\n\nRepresents the outstanding balance less associated provision for impairment.\n\n1.  Loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n1.1 Households\n\nThis comprises loans to households for any purpose.\n\n1.2 Private unincorporated businesses\n\nThis comprises individuals acting as sole proprietors or in partnerships, for commercial or professional purposes. The major businesses to be included are unincorporated farms, unincorporated retailers, unincorporated professional practices (medical, legal, dental, accounting, etc.), unincorporated businesses of tradesmen such as plumbers, carpenters, etc.\n\n1.3 Private trading corporations\n\nPrivate trading corporations are those owned and controlled by the private sector. Include:\n\n-   non-profit institutions;\n-   intra-group financiers, retailers and parent companies with significant holdings of shares in private trading companies;\n-   privately owned schools and hospitals;\n-   any unincorporated unit that is a branch in Australia of a non-resident company; and\n-   any unincorporated business owned and operated by trading corporations (e.g. joint ventures).\n\n1.4 Other\n\nInclude all other loans and advances not disclosed on the form.\n\n2. Total loans and advances\n\nReport all loans and advances in accordance with the following categories.\n\n2.1 Are contracted at fixed rates\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a fixed interest rate.\n\n2.2 Are contracted at a variable rate\n\nOf the total loans and advances of the MDO, disclose the aggregate value of loans and advances that have been funded at a variable interest rate.\n\n2.3 Are contracted on an unsecured basis\n\nOf the total loans and advances of the MDO, disclose the value of any loans and advances where the MDO has taken no security from the counterparty.\n\n2.4 Repayment is past due date 90 days or more but less than 1 year\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 90 days or more, but less than 1 year.\n\n2.5 Repayment is past due date 1 year or more\n\nReport the outstanding balance of the loan, the value of any security taken by the MDO as collateral for the loan, and the value of any provision for impairment provided against the loan, for all loans where repayment is past the due date by 1 year or more.\n\n3. Total Loans and advances\n\nReport all loans and advances accordance to the applicable counterparty grade (and maturity where applicable) as detailed on the form (refer items 3.1-3.5). The grades are detailed at Attachment 1.\n\nAlso report the aggregate balance of loans and advances that are denominated in a currency other than the Australian currency (refer item 3.6).\n\n4. Total loans and advances\n\nReport all loans and advances to related entities in accordance with the categories detailed on the form.\n\nATTACHMENT 1: Counterparty Grades\n\n| Grade | Standard & Poor’s | Moody’s      | AM Best    | Fitch        |\n| ----- | ----------------- | ------------ | ---------- | ------------ |\n| 1     | AAA               | Aaa          | A++        | AAA          |\n| 2     | AA+AAAA-          | Aa1Aa2Aa3    | A+         | AA+AAAA-     |\n| 3     | A+AA-             | A1A2A3       | AA-        | A+AA-        |\n| 4     | BBB+BBBBBB-       | Baa1Baa2Baa3 | B++B+      | BBB+BBBBBB-  |\n| 5     | BB+ or below      | Ba1 or below | B or below | BB+ or below |\n\nUnrated assets or exposures should be classified as Grade 4.\n\nAn MDO must, in general, use the same rating agency for determining counterparty grades. An MDO may depart from this general rule where there are good reasons for doing so, such as under the following circumstances:\n\nWhere the rating agencies usually monitored by the insurer do not issue a solicited credit rating for a particular debt obligation and only one other rating agency issues a solicited credit rating for that debt obligation, the MDO may use that solicited credit rating.","sortOrder":3}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2845},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The determination maintains its original scope of requiring Medical Defence Organisations to report specific data regarding their loans and advances investments to APRA. The content remains focused on this singular reporting obligation without expansion into unrelated areas."},"complexity_factors":["References to 6 separate Australian Accounting Standards (AASB 121, 124, 127, 128, 131, 139)","5-grade counterparty rating system mapped to 4 international credit rating agencies with specific grade equivalencies","Cross-form reconciliation requirements with 5 other related reporting forms (MRF 140.0 through 140.4 and MRF 300.0)","Multiple reporting timeframes (4 months for annual, 20 business days for half-yearly)","Detailed categorization across 4 counterparty sectors with sub-classifications","Technical accounting requirements for impairment recognition, securities lending, and trade date accounting"],"plain_english_summary":"This APRA reporting requirement obliges Medical Defence Organisations to submit detailed twice‑yearly returns on their loans and advances — covering borrower types, credit quality, collateral, problem loans and foreign‑currency exposures — with specified filing windows and an annual auditor certificate. \n\nThe returns let APRA monitor MDO investment risk and solvency so insurers remain able to meet future medical malpractice claims."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-9-of-2007-mrs-140-3-investme","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-9-of-2007-mrs-140-3-investme/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-9-of-2007-mrs-140-3-investme/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-9-of-2007-mrs-140-3-investme/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-9-of-2007-mrs-140-3-investme/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-9-of-2007-mrs-140-3-investme/documents"}}