Reporting Form ARF 222.1

Exposures to related entities – foreign ADI

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form ARF 222.1 Exposures to related entities - foreign ADI (ARF 222.1). This form collects information on the exposures of the Australian branch of a foreign authorised deposit-taking institution (foreign ADI) to the head office, other branches, and subsidiaries of the foreign ADI.

In completing this form, foreign ADIs must refer to Prudential Standard APS 222 Associations with Related Entities (APS 222).

General directions and notes

Reporting entity

ARF 222.1 must be completed on a domestic book basis by all foreign ADIs.

Domestic books means an unconsolidated report of positions, transactions and other information recorded on the Australian books of the body corporate authorised by APRA to carry on banking business under the Banking Act 1959. Domestic books include transactions and positions with both residents and non-residents that are recorded on the Australian books of these entities.

Reporting period

This form is to be completed as at the last calendar day of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the foreign ADI.

Unit of measurement

ADIs must complete the form in whole Australian dollars (no decimal place).

Amounts denominated in foreign currency must be converted to AUD in accordance with Accounting Standard AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).

Basis of preparation

For the purposes of this form, foreign ADIs must report all exposures. In completing this form, foreign ADIs must apply the requirements for netting specified in Attachment A to Prudential Standard APS 221 Large Exposures (APS 221).

A foreign ADI may report using the requirements and definitions that it applies in reporting exposures under the requirements of its home jurisdiction, unless otherwise notified by APRA.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

Credit risk mitigation (CRM) means the CRM techniques allowed in Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112).

Exposure is defined in paragraphs 34 to 37 of APS 222.

Foreign ADI related entities means the head office, individual overseas branches, and individual Australian and overseas subsidiaries of the foreign ADI.

Legal Entity Identifier is a 20-digit, alpha-numeric code issued by a Local Operating Unit in accordance with the International Organization for Standardization’s International Standard ISO 17442. The GlobalLegal Entity Identifier Foundation maintains a free online searchable database of Legal Entity Identifiers, available at .