Specific instructions

Definitions/interpretation for specific items

The following provides guidelines to facilitate in the specific disclosure of equity related investments held by the insurer and the consolidated insurance group.

If the units are held in a related/controlled entity of the insurer (i.e. a dedicated investment management entity for the Insurer), the Insurer may apply to APRA to have such entities approved as part of its Extended Licensed Entity (ELE). This is set out in GGN 110.4 Investment Risk Capital Charge paragraphs 6 – 9. Once approved by APRA this will allow the insurer to look through the legal structures involved and to consolidate the balance sheet of the related entity with its own for the purposes of determining the Investment Risk Capital Charge. If the insurer has an approved ELE, the underlying individual securities/investments supporting the units held by the licensed insurer are to be disclosed in the investment forms.

Note:

• Specific disclosure of equity security holdings classified in points 1 and 2 of this form are required by the ABS.
• Units in listed or unlisted trusts (e.g. property trusts) for the purposes of calculating the appropriate investment risk charge units in listed and unlisted trusts are to be included in GRF 140.4 Investments – Assets Indirectly Held by Insurer and Risk Charge.

1. Equities listed on the Australian Securities Exchange (ASX)

Report all equity securities listed on the Australian Stock Exchange at market value. This section relates only to equity securities that are listed on the Australia stock exchange. Do not include in this section equity securities that are owned by the insurer and listed on recognised stock exchanges in other countries outside of Australia.

Include:

• Preference shares;
• Securities (stock) lent or sold under repurchase agreements; and
• Equity securities that are listed on the Australia stock exchange.

Exclude:

• Rights, options and warrants, include these as Financial Derivatives on form Titled Statement of Derivatives Activities and Calculation of Risk Charge;
• Equity in non-Australian resident companies listed on the ASX. Report these assets as unlisted equity;
• Securities borrowed or purchased under resale agreements; and
• Do not include in this section equity securities that are listed on recognised stock exchanges in other countries outside of Australia.

1.1 Banks and ADIs

Banks refers to Authorised Deposit Taking Institutions (ADIs), in relation to which an authority under subsection 9(3) is in force and which holds a consent under section 66 of the Banking Act 1959 to use the word bank.