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					                                                                           October 2008




Financial Sector (Collection of Data)
(reporting standard) determination No. 63
of 2008

Reporting Standard GRS 130.1 (2008) Off Balance
Sheet Business – Liquidity Support Facilities
Obtained


Financial Sector (Collection of Data) Act 2001

I, Charles Watts Littrell, a delegate of APRA, under paragraph 13(1)(a) of the
Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the
Acts Interpretation Act 1901:

   REVOKE Reporting Standard GRS 130.1 (2007) Off Balance Sheet Business –
    Liquidity Support Facilities Obtained which is in force as at the date of this
    determination (the old standard); and

   DETERMINE Reporting Standard GRS 130.1 (2008) Off Balance Sheet Business
    – Liquidity Support Facilities Obtained in the form set out in the Schedule (the
    new standard), which applies to the financial sector entities referred to in
    paragraph 2 of the new standard.

Under section 15 of the Act, I DECLARE that the new standard shall begin to apply,
and the old standard shall cease to apply, on the date of registration of this instrument
on the Federal Register of Legislative Instruments.


Dated 16 October 2008

[Signed]


Charles Littrell
Executive General Manager
Policy, Research and Statistics
                                                                   October 2008


Interpretation
In this Determination
APRA means the Australian Prudential Regulation Authority.
Federal Register of Legislative Instruments means the register established under
section 20 of the Legislative Instruments Act 2003.
                                                                     October 2008


Schedule
Reporting Standard GRS 130.1 (2008) Off Balance Sheet Business – Liquidity
Support Facilities Obtained comprises the 13 pages commencing on the next page.
                                                                          October 2008




Reporting Standard GRS 130.1 (2008)
Off Balance Sheet Business – Liquidity
Support Facilities Obtained

Objective of this reporting standard
This reporting standard is made under section 13 of the Financial Sector (Collection
of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers),
including foreign general insurers (foreign insurers) operating in Australia through
branch operations, to report to APRA, generally on a quarterly and annual basis, their
off balance sheet exposures in the form of liquidity support facilities.

This reporting standard outlines the overall requirements for the provision of this
information to APRA. It should be read in conjunction with:

    Form GRF 130.1 Off Balance Sheet Business – Liquidity Support Facilities
     Obtained (Form GRF 130.1) and the associated instructions (which are attached
     and form part of this reporting standard); and

    any prudential standards referenced in the attached instructions.


Purpose

1.   Data collected in Form GRF 130.1 is used by APRA for the purpose of
     prudential supervision including assessing an insurer’s compliance with the
     capital standards.

Application and commencement

2.   This reporting standard applies to all insurers for reporting periods commencing
     on or after 1 July 2008.

Information required

3.   An insurer must provide APRA with the information required by Form GRF
     130.1 for each reporting period.




                                                                         GRS 130.1 - 1
                                                                                          October 2008


Forms and method of submission

4.   The information required by this reporting standard must be given to APRA
     either:

     (a)    in electronic form using the ‘Direct to APRA’ application, applying one of
            the electronic submission mechanisms under that application; or

     (b)    by manually completing Form GRF 130.1 on paper and mailing the
            completed form to APRA’s head office at Level 26, 400 George Street,
            Sydney, New South Wales.

     Note: the Direct to APRA application software and paper forms may be obtained from APRA.

Reporting periods and due dates

5.   Subject to paragraph 6, an insurer must provide the information required by this
     reporting standard:

     (a)    in respect of each quarter based on the financial year (within the meaning
            of the Corporations Act 2001) of the insurer; and

     (b)    in respect of each financial year (within the meaning of the Corporations
            Act 2001) of the insurer.

     Note: The annual information required by paragraph 3 read with subparagraph 5(b), together
     with certain annual information required by other reporting standards, will form part of the
     insurer’s yearly statutory accounts within the meaning of section 3 of the Insurance Act 1973
     (the Insurance Act). This means that the information must be audited in accordance with
     paragraph 49J(1)(a) of the Insurance Act. Under subsection 49J(3), the auditor must give the
     insurer a certificate relating to the yearly statutory accounts, and that certificate must specify the
     matters provided for in the prudential standards.

6.   APRA may, by notice in writing, change the reporting periods, or specified
     reporting periods, for a particular insurer to require it to provide the
     information:

     (a)    more frequently (if, having regard to the particular circumstances of the
            insurer, APRA considers it necessary or desirable to obtain information
            more frequently for the purposes of the prudential supervision of the
            insurer); or

     (b)    less frequently (if, having regard to the particular circumstances of the
            insurer and the extent to which it requires prudential supervision, APRA
            considers it unnecessary to require the insurer to provide the information
            as frequently as provided by subparagraph 5(a) or (b)).

7.   The information required by paragraph 3 of this reporting standard from an
     insurer must be provided to APRA by the following times:

     (a)    in the case of the quarterly information required by subparagraph 5(a) –
            20 business days after the end of the reporting period to which the
            information relates; and


                                                                                        GRS 130.1 - 2
                                                                                      October 2008


      (b)    in the case of the annual information required by subparagraph 5(b) – 4
             months after the end of the reporting period to which the information
             relates.

      Note: Paragraph 49L(1)(a) of the Insurance Act provides that the auditor’s certificate required
      under subsection 49J(3) of that Act must be lodged with APRA in accordance with the
      prudential standards. The prudential standards provide that the certificate must be submitted to
      APRA together with the yearly statutory accounts. Accordingly, the auditor’s certificate in
      relation to the annual information required by paragraph 3 read with subparagraph 5(b) must be
      provided to APRA by the time specified in subparagraph 7(b) of this reporting standard (unless
      an extension is granted under paragraph 8).

8.    APRA may grant an insurer an extension of a due date in writing, in which case
      the new due date for the provision of the information will be the date on the
      notice of extension.

Quality control

9.    The information provided by an insurer under this reporting standard must be
      the product of processes and controls that have been reviewed and tested by the
      appointed auditor of the insurer. This will require the auditor to review and test
      the systems, processes and controls supporting the reporting of the information
      to ensure that they produce accurate data and are otherwise reliable. This
      review and testing must be done on an annual basis or more frequently if
      necessary to enable the appointed auditor to form an opinion on the accuracy
      and reliability of the data.

10.   The information provided by an insurer under this reporting standard must be
      subject to processes and controls developed by the insurer for the internal
      review and authorisation of that information. It is the responsibility of the board
      and senior management of the insurer to ensure that an appropriate set of
      policies and procedures for the authorisation of data submitted to APRA is in
      place.

Authorisation

11.   If the officer of an insurer provides the information required by this reporting
      standard:

      (a)    under subparagraph 4(a), the officer must digitally sign, authorise and
             encrypt the information (for which purpose APRA’s certificate authority
             will issue digital certificates, for use with the ‘Direct to APRA’
             application, to officers of the insurer who have authority from the insurer
             to transmit data to APRA); or

      (b)    under subparagraph 4(b), the completed form must be signed in
             accordance with paragraph 13.

12.   If an insurer provides the information required by this reporting standard
      through an agent under either subparagraph 4(a) or (b), the agent will not be
      required to sign or authorise the information. However, the insurer must:




                                                                                    GRS 130.1 - 3
                                                                                   October 2008


      (a)   obtain from the agent a paper copy of the completed form as provided to
            APRA (whether it was provided under subparagraph 4(a) or (b)); and

      (b)   cause the paper copy to be signed in accordance with paragraph 13; and

      (c)   lodge the signed paper copy with APRA by mailing the completed form to
            APRA’s head office at Level 26, 400 George Street, Sydney, New South
            Wales, by the relevant due date (unless APRA, in writing, waives the
            requirement to lodge the signed paper copy with APRA by varying this
            reporting standard in relation to the insurer).

      Note: APRA may, for example, determine to waive the requirement under subparagraph 12(c)
      where an insurer has undertaken to retain the signed copy of the completed form for an agreed
      period of time.

13.   If information under this reporting standard is provided in paper form, it must be
      signed on the front page of the relevant completed form by either:

      (c)   the Principal Executive Officer of the insurer; or

      (d)   the Chief Financial Officer of the insurer (whatever his or her official title
            may be).

Minor alterations to forms and instructions

14.   APRA may make minor variations to the instructions to a form, to clarify their
      application to the form without changing any substantive requirement in the
      form or instructions.

15.   If APRA makes such a variation it must notify insurers in writing.

Transition

16.   An insurer must report in relation to a reporting period ending prior to 1 July
      2008 in accordance with the reporting standard that this reporting standard
      replaced.

Interpretation

17.   In this reporting standard:

      appointed auditor means an auditor appointed under paragraph 39(1)(a) of the
      Insurance Act;

      business days means ordinary business days, exclusive of Saturdays, Sundays and
      public holidays;

      capital standards means the prudential standards which relate to capital adequacy as
      defined in Prudential Standard GPS 001 Definitions;

      foreign insurer means a foreign general insurer within the meaning of the Insurance
      Act;




                                                                                  GRS 130.1 - 4
                                                                                       October 2008

     Note: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations
     of a foreign insurer.

     Insurance Act means the Insurance Act 1973;

     insurer means a general insurer within the meaning of the Insurance Act;

     Note: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance
     entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised
     reinsurance entity’ is a reference to an insurer whose business consists only of undertaking
     liability by way of reinsurance.

     Principal Executive Officer means the principal executive officer of the insurer for the
     time being, by whatever name called, and whether or not he or she is a member of the
     governing board of the insurer;

     reporting period means a period mentioned in subparagraph 5(a) or (b) or, if
     applicable, paragraph 6.

A reference to a prudential standard means the prudential standard, made under
section 32 of the Insurance Act, mentioned in the reference, as amended from time to
time. If the prudential standard has been revoked and replaced, the reference shall be
taken to be to the prudential standard that has replaced it




                                                                                     GRS 130.1 - 5
                                                                   October 2008



     GRF 130.1: Off Balance Sheet Business - Liquidity Support
                       Facilities Obtained (L)


Australian Business Number



Institution Name



Reporting Period



Scale Factor                             Thousands of dollars no decimal places




Reporting Consolidation                             - Licensed Insurer




                                         GRF 130.1 Licensed Insurer - 1
                                                                         October 2008


                                                         Approved        Undrawn
                                                          Balance        Balance
TYPE OF FACILITY                                         Available       Available
Standby facilities:
      - Facilities with same day draw down
      - Facilities with 2 - 5 day draw down
      - Facilities with greater than 5 day draw down
Bill acceptance and discount facilities
Letter of credit facilities
Overdrafts
Other liquidity support facilities

Total OBS liquidity support facilities

Total which are with related entities




                                                       GRF 130.1 Licensed Insurer - 2
                                                                          October 2008


Reporting Form GRF 130.1
Off-Balance Sheet Business - Liquidity
Support Facilities Obtained
Instruction Guide
Introduction
This form collects information on an insurer’s (reinsurer’s) off-balance sheet liquidity
arrangements.

Audit requirements

The form relating to authorised insurance entities and reinsurance entities is required
to be subject to audit review and testing.

The scope and nature of audit testing required is outlined in the applicable Auditing
and Assurance Guidance Statement issued by the Auditing and Assurance Standards
Board.

Information provided in the form in respect of a financial year of an insurer forms part
of the insurer’s ‘yearly statutory accounts’ within the meaning of section 3 of the
Insurance Act 1973. This means that:

    the completed form for the financial year must be audited by the Appointed
     Auditor of the insurer (see paragraph 49J(1)(a) of the Act);

    the insurer must make such arrangements as to enable the auditor to do this
     (subsection 49J(2));

    the auditor must give the insurer a certificate relating to the completed form
     (and other completed forms that are part of the insurer’s yearly statutory
     accounts), which must contain statements of the auditor’s opinion on the matters
     required by the prudential standards to be dealt with in the certificate
     (subsection 49J(3));

    the certificate must be lodged with APRA as provided for in the prudential
     standards (paragraph 49L(1)(a)), namely by the due date for lodging the form in
     respect of the financial year for the insurer.

Reporting entity

Forms are to be completed for the following reporting entities only where required:

1.   Branch insurers of a foreign parent insurer (reference to licensed insurer in the
     form means total operations of the branch, excluding the parent operations);




                                                           GRF 130.1 Instructions - 1
                                                                                     October 2008


2.   Authorised insurance entities, including mutual entities (reference to licensed
     insurer in the form means total operations of the licensed entity); and

3.   Authorised reinsurance entities (reference to licensed insurer in the form means
     total operations of the licensed entity).

Unit of measurement

Amounts denominated in foreign currency are to be converted to AUD in accordance
with AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.

The general requirements of AASB 121 ‘The Effects of Changes in Foreign Exchange
Rates’ for translation are:

1.   Foreign currency monetary items1 outstanding at the reporting date must be
     translated at the spot rate2 at the reporting date.

2.   Foreign currency non-monetary items3 that are measured at historical cost in a
     foreign currency must be translated using the exchange rate at the date of the
     transaction.

3.   Foreign currency non-monetary items that are measured at fair value will be
     translated at the exchange rate at the date when fair value was determined.

Transactions arising under foreign currency derivative contracts at the reporting date
must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition
and Measurement’. However, those foreign currency derivatives that are not within
the scope of AASB 139 ‘Financial Instruments: Recognition and Measurement’ (eg
some foreign currency derivatives that are embedded in other contracts) remain within
the scope of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.

For APRA purposes equity items must be translated using the foreign currency
exchange rate at the date of investment or acquisition. Post acquisition changes in
equity are required to be translated on the date of the movement.

As foreign currency derivatives are measured at fair value, the currency derivative
contracts are translated at the spot rate at the reporting date.

Exchange differences should be recognised in profit and loss in the period which they
arise. For foreign currency derivatives, the exchange differences would be recognised
immediately in profit and loss if the hedging instrument is a fair value hedge. For
derivatives used in a cash flow hedge, the exchange differences should be recognised
directly in equity.



1
     Monetary items are defined to mean units of currency held and assets and liabilities to be
     received or paid in a fixed or determinable number of units of currency.
2
     Spot rate means the exchange rate for immediate delivery.
3
      Examples of non-monetary items include amounts prepaid for goods and services (e.g. prepaid
     rent); goodwill; intangible assets; physical assets; and provisions that are to be settled by the
     delivery of a non-monetary asset.



                                                                   GRF 130.1 Instructions - 2
                                                                            October 2008


The ineffective portion of the exchange differences in all hedges would be recognised
in profit and loss.

4.    Translation of financial reports of foreign operations.

A foreign operation is defined in AASB 121 ‘The Effects of Changes in Foreign
Exchange Rates’ as meaning an entity that is a subsidiary, associate, joint venture or
branch of a reporting entity, the activities of which are based or conducted in a
country or currency other than those of the reporting entity.

     Exchange differences relating to foreign currency monetary items that form part
      of the net investment of an entity in a foreign operation, must be recognised as a
      separate component of equity.

     Translation of financial reports should otherwise follow the requirements in
      AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.

Reporting period

Insurers are required to report the information in the reporting form on a quarterly and
annual basis.

     The quarterly information is to be completed in respect of each quarter based on
      the financial year of the insurer, not the calendar year.

     The annual information is to be completed in respect of the financial year of the
      insurer.

     The financial information requested in this form is to be reported as at the last
      day of the reporting period on a financial year to date basis of the insurer.

Reporting lag

This form must be lodged for each of the reporting units within the number of
business days after the end of the quarter as set out in Reporting Standard GRS 130.1
Off Balance Sheet Business – Liquidity Support Facilities Obtained.

Related party disclosure

For the purposes of this form, related bodies corporate are to be interpreted
consistently with the meaning as in AASB 124 ‘Related Party Disclosures’.

In accordance with AASB 124, related party means a party that directly or indirectly
through one or more intermediaries:

(a)   controls, is controlled by or is under common control with, the entity (this
      includes parents, subsidiaries and fellow subsidiaries);

(b)   has significant influence over the entity or has joint control over the entity; or

(c)   is an associate (as defined in AASB 128 ‘Investments in Associates’) of the
      entity; or


                                                             GRF 130.1 Instructions - 3
                                                                            October 2008


(d)   is a joint venture in which the entity is a venturer (see AASB 131 ‘Interests in
      Joint Ventures’); or

(e)   is a member of the key management personnel of the entity or its parent; or

(f)   is a close member of the family of any individual referred to in (a), (b) or (e); or

(g)   is an entity that its controlled, jointly controlled or significantly influenced by,
      or for which significant voting power in such entity resides with, directly or
      indirectly, any individual referred to in (e) or in (f); or

(h)   is a post-employment benefit plan for the benefit of the employees of the entity,
      or of any entity that is a related party of the entity.




                                                            GRF 130.1 Instructions - 4
                                                                           October 2008


Specific instructions
This section captures information on liquidity support facilities contracted by the
insurer (reinsurer) to supplement its liquidity management practices.

Approved Balance Available

Report the total approved balance of the facility.

Undrawn Balance Available

Report the balance of the facility that has not been used or drawn-down by the insurer
at the reporting date.

Standby facilities

These facilities are approved and committed to the insurer. These generally require
written notice by the insurer to trigger draw down (access) to the funds.

Facilities with same day drawdown

Report those standby facilities that are able to be drawn down (funds accessed) the
same day as notice is given by the insurer of its intention to draw down on the standby
facility.

Facilities with 2-5 day drawdown

Report those standby facilities that are able to be drawn down (funds accessed) within
2-5 days after notice from the insurer is given of its intention to draw down on the
standby facility (i.e. a 2-5 day waiting period).

Facilities with greater than 5 days drawdown

Report those standby facilities that are only able to be drawn down (funds accessed) 5
days after notice from the insurer is given of its intention to draw down (i.e. a 5 day
waiting period).

Bill Acceptance/Discount Facilities

These are another form of liquidity/funding. The funding is provided to the insurer by
a facility that discounts bills (e.g. bank accepted bills). Principal and interest
(discount) owing on the bill is repaid or ‘rolled over’ by the insurer on maturity of the
bill.

Letter of Credit Facilities

Report the Letter of Credit facilities available to the insurer.

Overdrafts

Report the overdrafts facilities available to the insurer.




                                                              GRF 130.1 Instructions - 5
                                                                          October 2008


Other liquidity support facilities

Report all other off-balance sheet liquidity support facilities contracted by the insurer
which are not included in the categories above.

Total OBS liquidity support facilities

Do not enter values. This amount is automatically calculated by the form.

Total Liquidity Support Facilities Which Are With Related Entities

Report liquidity support facilities that are provided by related entities of the insurer
(e.g. parent entity of the insurer or a related entity of the parent entity).




                                                           GRF 130.1 Instructions - 6

				
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