Reporting Form ARF 222.0

Exposures to Related Entities

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form ARF 222.0 Exposures to related entities (ARF 222.0). This form collects information on an authorised deposit-taking institution’s (ADI’s) exposures to related entities.

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

General directions and notes

Reporting entity

ARF 222.0 must be completed on a Level 1 basis by all ADIs, with the exception of:

(a) foreign ADIs; and

(b) providers of purchased payment facilities.

Securitisation deconsolidation principle

1. 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):

(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

(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.

2. 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.

Securitisation exclusions

Funding-only securitisations that are self-securitisations are excluded from the reporting requirements in ARF 222.0.

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 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, ADIs must report all exposures including both the effect of Credit risk mitigation (CRM) techniques (item 1) as well as on the basis of excluding the effect of CRM techniques (item 2), in accordance with Prudential Standard APS 221 Large Exposures (APS 221).