Specific instructions

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

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 – Indirectly Held by Insurer and Risk Charge.

1. Australian Listed Equity – Direct Holdings

The information required to be reported under this section is different to the information required to be disclosed for item 4 of this form. This section is mainly collected for the purposes of Australian Bureau of Statistics (ABS) and as such the definitions of listed equities are slightly different for ABS purposes.

For ABS purposes, listed equities includes only those equities listed on the Australian Stock Exchange (ASX) and excludes certain stocks including equity investments in non-Australian resident companies listed on the ASX.

The information required under item 4 is for the purposes of calculating the investment risk charge on equity investments and as such the guidance on what is considered to be listed equities for the purposes of the prudential standards is outlined under item 4 of this form.

Report all equity securities listed on the Australian Stock Exchange at fair value. This section relates only to equity securities that are listed on the Australian 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 Australian stock exchange.

Exclude:

• Rights, options and warrants, include these as Financial Derivatives on GRF 160.0 Derivative Activity and 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
• 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 (Banking Act) to use the word bank.

Include:

• Development banks;
• Foreign banks licensed to operate in Australia under the Banking Act 1959.

Exclude:

• Merchant banks (record as Other).

ADIs refer to corporations, which have an authority under subsection 9(3) in force, but which do not hold a consent under section 66 under the Banking Act to use the word bank. These include Building Societies and Credit unions.

Exclude:

Holding of securities issued by Finance Corporations, these are included under Registered Financial Corporations.

1.2 General insurance corporations

Includes corporations that provide general insurance (e.g. fire, accident, employer liability, public liability, household, marine).