In completing this section, life companiIn completing this section, life companies should refer to LPS 6.03 Section 9.

In completing this section, life companies should refer to LPS 6.03 Section 9.

Amounts entered in the Value column are the full value of any asset which is wholly or partly inadmissible, and should be consistent with what is reported in LRF 300.2. A Value entry is not required for Item 3.4.

Amounts entered in the Inadmissible Amounts column represent the inadmissible portion of the assets reported in the Value column. These amounts add up to the Inadmissible Assets Reserve.

4. Resilience requirements

While the first ‘Adjustment’ column relates solely to the Yield change element of Credit Risk, the second ‘Adjustment’ column reflects not only the yield change, but also the application of Diversification benefit. The insertion of this further column assists in making the logical flow of this part of the form align more closely with the methodology in LPS 6.03.

Please refer to the instruction guide for LRF 300.1 and LRF 300.2 for definition of items under asset and liability category.

4.1.12. Assets with non-standard resilience factors

This asset class should only be used in rare cases. It is intended to cover situations where assets are disaggregated into (1) an identifiable sub-asset and (2) a residual that does not fit into any of the asset sectors specified by LPS 6.03 for resilience purposes, or where a non-standard resilience risk has been modelled in accordance with paragraph 10.9 of LPS 6.03.