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ASX CAPITAL LIQUIDITY RETURN - INSTRUCTIONS

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ASX CAPITAL LIQUIDITY RETURN - INSTRUCTIONS

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									Capital Liquidity                                                                                                                         Section 4
Handbook                                                                                                  Risk Based Capital Requirements Guidance

                                                         Reporting Requirements Guidance

   SECTION 4 – REPORTING REQUIREMENTS GUIDANCE


                                                                           Contents



   1.     REPORTING REQUIREMENTS GUIDANCE.............................................................................................. 1710

    (a)           Overview ........................................................................................................................... 1710
        (i)       Returns .............................................................................................................................. 1710
        (ii)      Lodgement Format............................................................................................................ 1710
    (b)           Summary of Returns.......................................................................................................... 1711
        (i)       Introduction....................................................................................................................... 1711
        (ii)      Adhoc Return .................................................................................................................... 1711
          (A)     General ............................................................................................................................................. 1711
          (B)     Lodgement and Signatory Requirements.......................................................................................... 1711
        (iii)     Summary Capital Liquidity Return ................................................................................... 1711
          (A)     General ............................................................................................................................................. 1711
          (B)     Lodgement and Signatory Requirements.......................................................................................... 1711
        (iv)      Capital Liquidity Return ................................................................................................... 1712
          (A)     General ............................................................................................................................................. 1712
          (B)     Lodgement and Signatory Requirements.......................................................................................... 1712
        (v)       Audited Capital Liquidity Return ..................................................................................... 1713
          (A)     General ............................................................................................................................................. 1713
          (B)     Lodgement and Signatory Requirements.......................................................................................... 1713
        (vi)      Partners Statutory Declaration .......................................................................................... 1714
          (A)     General ............................................................................................................................................. 1714
          (B)     Lodgement and Signatory Requirements.......................................................................................... 1714
    (c)           Returns Lodgement ........................................................................................................... 1714
        (i)       Electronic Format.............................................................................................................. 1714
        (ii)      Returns Lodgement Timetable and Late Fees................................................................... 1716
        (iii)     Other Acceptable Signatories for Corporations ................................................................ 1717
        (iv)      Procedures for Granting Extensions to Returns Lodgement............................................. 1717
    (d)           Indicative Timetable of Pages Requiring Completion ...................................................... 1719




Reporting Requirements Guidance                                          February 2009                                                                           Page 1700
Capital Liquidity                                                                                  Section 4
Handbook                                                           Risk Based Capital Requirements Guidance

                                  Reporting Requirements Guidance




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Reporting Requirements Guidance             February 2009                                         Page 1701
Capital Liquidity                                                                                Section 4
Handbook                                                         Risk Based Capital Requirements Guidance

                                       Reporting Requirements Guidance



   1.         REPORTING REQUIREMENTS GUIDANCE

              (a)       OVERVIEW

                        (i)     Returns

   The Risk Based Capital Requirements have five prescribed returns that may require
   lodgement at various times or under different circumstances and these are noted below:

         1.         Adhoc Return - to be lodged by all Participants on an ad hoc, daily or weekly
                    basis if requested by ASX/ACH or if the ratio of liquid capital to total risk
                    requirement falls below the specified minimum;

         2.         Summary Capital Liquidity Return - to be lodged by all Participants on an ad
                    hoc, daily or weekly basis if requested by ASX/ACH;

         3.         Capital Liquidity Return - to be lodged by all Participants on a monthly basis;

         4.         Audited Capital Liquidity Return - to be lodged by all Participants on an annual
                    basis; and

         5.         Partners Statutory Declaration - to be lodged twice a year for all partners in a
                    partnership.

   With the exception of the Partners Statutory Declaration, each return has been developed
   around a single base return structure. This means that there is basically a single return format
   from which various returns can be derived for different purposes. For example, the Audited
   Capital Liquidity Return represents the whole return structure. The Capital Liquidity
   Return is a reduced form of the Audited Capital Liquidity Return, the Summary Capital
   Liquidity Return is a reduced form of the Capital Liquidity Return and the Adhoc Return
   is a reduced form of the Summary Capital Liquidity Return.

                        (ii)    Lodgement Format

   All Participants are required to lodge their capital liquidity returns in electronic format. This
   format is mandatory as it enables Capital Monitoring to efficiently upload each Participant’s
   data in to a common data base and then complete an analysis of the data received.

   In order to facilitate this, Capital Monitoring provides each Participant with the necessary
   ASX Returns software, which is required to be loaded on to a computer in the Participant’s
   office. This software is designed to enable a Participant to report its capital liquidity figures,
   it does not calculate the detail that makes up these figures.

   Please note that the ASX Returns software is not compatible with the Microsoft Vista
   operating system or with Microsoft Access 2007. All Participants need to have Windows XP
   installed on at least one PC so that they are able to continue running the ASX Returns




Reporting Requirements Guidance                 February 2009                                   Page 1710
Capital Liquidity                                                                             Section 4
Handbook                                                      Risk Based Capital Requirements Guidance

                                   Reporting Requirements Guidance

   software. Participants should also ensure that they do not install Access 2007 on any
   computer they are using to run the ASX Returns software.

   The Partners Statutory Declaration is a paper based return and copies can be obtained on
   request from Capital Monitoring.

            (b)     SUMMARY OF RETURNS

                    (i)     Introduction

   A brief commentary on each return is provided below. A table setting out the sections that
   need to be completed for each type of return is provided later in this section of the Handbook.

                    (ii)    Adhoc Return

                            (A)    General

   The Adhoc Return is a single page return which summarises the components of liquid
   capital and total risk requirement as well as the liquid margin and the capital ratio. This
   return may be required to be completed on an ad hoc, daily or weekly basis.

                            (B)    Lodgement and Signatory Requirements

   The Adhoc Return must be lodged in electronic format. Only one director’s/partner’s
   signature is required on the return and this signed copy does not need to be sent to ASX/ACH.
   A signed copy does, however, have to be maintained in the Participant’s office and available
   for inspection by ASX/ACH if required.

                    (iii)   Summary Capital Liquidity Return

                            (A)    General

   The Summary Capital Liquidity Return may be required to be completed on an ad hoc,
   daily or weekly basis as advised by ASX/ACH but will always consist of the same number of
   sections (refer to table below) irrespective of the nature of the business activities undertaken
   or the size of the Participant.

                            (B)    Lodgement and Signatory Requirements

   The Summary Capital Liquidity Return must be lodged in electronic format. Only one
   director’s/partner’s signature is required on the “Directors/Partners Statement Relating to
   Accounts of a Participant” and this signed copy does not need to be sent to ASX/ACH. A
   signed copy does, however, have to be maintained in the Participant’s office and available for
   inspection by ASX/ACH if required. It is recommended that a hard copy of the Summary
   Capital Liquidity Return be kept with this directors/partners statement for ease of future
   reference.


Reporting Requirements Guidance             February 2009                                    Page 1711
Capital Liquidity                                                                             Section 4
Handbook                                                      Risk Based Capital Requirements Guidance

                                   Reporting Requirements Guidance

                    (iv)   Capital Liquidity Return

                           (A)     General

   The Capital Liquidity Return includes the same sections as the Summary Capital
   Liquidity Return plus a number of detailed pages that support the figures that appear in the
   liquid capital and total risk requirement calculations.

   As the business activities undertaken by each Participant will vary and, in some instances,
   Participants have a choice of methodology in the calculation of the capital requirement, the
   number of sections in the Capital Liquidity Return that one Participant is required to lodge
   will vary to that of another Participant.

   In addition, if the business activities of the same Participant varies from month to month the
   number of sections that are required to be lodged may also vary.

   It should be noted that for the months ended March, June, September and December the ASX
   Returns software will “automatically” request a number of additional sections to be completed
   by all Participants, irrespective of the business activities undertaken. These sections include
   matters such as contingent liabilities, credit facilities and other statistical information.

                           (B)     Lodgement and Signatory Requirements

   The Capital Liquidity Return must be lodged in electronic format.                     Only one
   director’s/partner’s signature is required on the “Directors/Partners Statement Relating to
   Accounts of a Participant” and this signed copy does not need to be sent to ASX/ACH. A
   signed copy does, however, have to be maintained in the Participant’s office and available for
   inspection by ASX/ACH if required. It is recommended that a hard copy of the Capital
   Liquidity Return be kept with this directors/partners statement for ease of future reference.

   The “Directors/Partners Statement Relating to Accounts of a Participant” that is currently in
   the ASX Returns software refers to the Corporations Act and Australian accounting standards
   and so is not suitable for foreign Participants. An alternate form of the directors statement is
   available for foreign Participants. A scanned copy of this signed statement must be provided
   to ASX/ACH at the same time that the foreign Participant emails its monthly Capital
   Liquidity Return.




Reporting Requirements Guidance             February 2009                                    Page 1712
Capital Liquidity                                                                             Section 4
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                                    Reporting Requirements Guidance


                    (v)     Audited Capital Liquidity Return

                            (A)     General

   The Audited Capital Liquidity Return includes those sections that are required to be lodged
   as a Capital Liquidity Return, as well as a number of additional documents that need to be
   provided such as a statement by the Participant’s auditors on the accounts of the Participant
   and the Key Risks and Internal Systems Statement. The latter requires sign off by the
   directors/partners of the Participant in relation to compliance with the capital requirements as
   well as acknowledgement that systems and procedures appropriate for the nature and extent of
   the trading and/or clearing activities undertaken exist and are operating effectively to ensure
   compliance with the Operating Rules.

                            (B)     Lodgement and Signatory Requirements

   The following Audited Capital Liquidity Return “package” should be lodged with Capital
   Monitoring:

         1.     Electronic copy of Annual Audited Capital Liquidity Return;

         2.     Scanned copy of the “Directors/Partners Statement relating to the Accounts of a
                Participant” or “Directors Statement relating to the Accounts of a Participant (for
                Foreign Participants)” (as applicable), dated and signed by one director in
                accordance with a resolution of the board of directors (the date of the resolution
                must be specified) or by two directors, or by two partners in the case of a
                partnership;

         3.     Scanned copy of the independent “Audit Report on Financial Information” or
                “Audit Report on Financial Information – Foreign Participants” (as applicable),
                dated and signed by the audit firm;

         4.     Scanned copy of the “Key Risks and Internal Systems Statement”, dated and
                signed by one director in accordance with a resolution of the board of directors
                (the date of the resolution must be specified) or by two directors, or by two
                partners in the case of a partnership;

         5.     Electronic copy of statutory accounts, including directors declaration and audit
                report as required under the laws of the Participant’s home jurisdiction;

         6.     Electronic copy of the Participant’s group structure chart. The chart should show
                the Participant’s corporate ownership structure starting at the ultimate parent,
                dropping down to the immediate parent, the Participant, any subsidiaries
                (including nominee companies of the Participant) and any related / associated
                companies of the Participant (Note: the Participant’s staff organisational chart is
                not required);

         7.     If the Participant is authorised to use the internal models approach of Rule
                S1A/S1, Annexure 3, Part 4, electronic copy of the report from the independent
                review of the Participant’s risk management system (as required under Rule
                S1A/S1, Annexure 3, Part 4, clause 25 (b) (viii)); and


Reporting Requirements Guidance             February 2009                                    Page 1713
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                                       Reporting Requirements Guidance

         8.         If the Participant has been given approval to use foreign accounting standards
                    under Rule S1A/S1.2.7(2) and ASX Rule 4.5.5(a) and/or ACH Rule 4.4.3(a), the
                    Participant will need to provide the scanned copy of the “Assurance Report
                    Relating to Accounting Standards Applicable to the Participant” signed by one
                    director in accordance with a resolution of the board of directors (in which case
                    the date of the resolution must be specified) or by two directors.

                        (vi)    Partners Statutory Declaration

                                (A)     General

   While the capital liquidity of a partnership is based on the activities of that partnership, it is
   possible that the liabilities of the individual partners may adversely impact the solvency of the
   partnership. Therefore, ASX 1 requires regular confirmation that the partners are financially
   sound and that the partnership’s assets are unlikely to be claimed by a third party taking
   action against a partner as an individual.

   The Partners Statutory Declaration does not vary with the nature of business activities
   undertaken and the number of pages required to be lodged remains constant.

                                (B)     Lodgement and Signatory Requirements

   The Partners Statutory Declaration must be lodged in paper format. Each declaration must
   be signed by the partner to whom it relates and witnessed in accordance with the instructions
   included on the declaration.

   A copy of the pro forma Partners Statutory Declaration is available on request from Capital
   Monitoring.

              (c)       RETURNS LODGEMENT

                        (i)     Electronic Format

   Capital Monitoring has prepared a User Guide for the ASX Returns software. As this guide
   changes from time to time to reflect amendments to the software, the User Guide is not
   included in this Handbook.

   A copy of the User Guide can be downloaded from the ASXOnline website
   (https://www.asxonline.com) or can be obtained on request from Capital Monitoring.




   1
    ACH is not mentioned here because the ACH Clearing Rules do not allow for any partnerships to be
   Participants. The ASX Market Rules only allow for partnerships that were admitted as Participants
   prior to 11 March 2004. No partnerships have been able to be admitted as new Participants from that
   date.


Reporting Requirements Guidance                 February 2009                                    Page 1714
Capital Liquidity                                                                             Section 4
Handbook                                                      Risk Based Capital Requirements Guidance

                                   Reporting Requirements Guidance

   As noted above, all Participants must lodge their capital liquidity returns in electronic format.
   The return must be emailed by the due date to asx.returns@asx.com.au or
   ach.returns@asx.com.au (as applicable).

   If a Participant lodges a return via email, ASX/ACH cannot guarantee the security of the
   return over the internet. ASX/ACH is investigating methods to overcome this issue.

   The due dates for all returns are detailed below.




Reporting Requirements Guidance             February 2009                                     Page 1715
Capital Liquidity                                                                                   Section 4
Handbook                                                            Risk Based Capital Requirements Guidance

                                        Reporting Requirements Guidance


                      (ii)     Returns Lodgement Timetable and Late Fees

   The following lodgement dates must be complied with by all Participants. As noted below,
   fees apply to returns that are not lodged by the due date.

                Return                                 Due 1                      Late Lodgement Fee 2
   Adhoc Return                         As requested by ASX/ACH under           $110 (inclusive of GST) per
                                        Rule S1A/S1.3.2                         Business Day the return is
   Prescribed under Rule                                                        late
   S1A/S1.3.1

   Adhoc Return                         Within one Business Day of              $110 (inclusive of GST) per
                                        notifying ASX/ACH under the             Business Day the return is
   Prescribed under                     provisions of Rule S1A/S1.2.2(1)        late
   Rule S1A/S1.2.2(2)(a)

   Daily Returns – Adhoc or             10am on each Business Day whilst        $110 (inclusive of GST) per
   Summary Capital Liquidity            the    provisions       of Rule         Business Day the return is
   Return                               S1A/S1.2.2(2)(b)(ii) apply              late

   Prescribed under
   Rule S1A/S1.2.2(2)(b)

   Weekly Returns – Adhoc or            10am on the Monday, return              $110 (inclusive of GST) per
   Summary Capital Liquidity            prepared as at the close of business    Business Day the return is
   Return                               each Friday, whilst the provisions of   late
                                        Rule S1A/S1.2.2(2)(b)(i) apply
   Prescribed under
   Rule S1A/S1.2.2(2)(b)

   Monthly Capital Liquidity            5.00pm on the 10th Business Day of      $110 (inclusive of GST) per
   Return                               the month following the reporting       Business Day the return is
                                        month                                   late
   Prescribed under
   Rule S1A/S1.3.1

   Annual Audited Capital               5.00pm on the last Business Day of      $110 (inclusive of GST) per
   Liquidity Return 3                   the second month following the end      Business Day the return is
                                        of the reporting period for             late
   Prescribed under ASX Rule 4.9        partnerships
   or ACH Rule 4.4, 4.5
   and                                  5.00pm on the last Business Day of
   Rule S1A/S1.3.1                      the third month following the end of
                                        the reporting period for body
                                        corporates

   Partners Statutory                   5.00pm on the 10th Business Day of      $110 (inclusive of GST) per
   Declarations - for affiliates in a   the month following the months of       Business Day the return is
   partnership only                     June and December                       late with a cap of $550

   Prescribed under ASX
   Rule S1A.3.1




Reporting Requirements Guidance                 February 2009                                       Page 1716
Capital Liquidity                                                                                 Section 4
Handbook                                                          Risk Based Capital Requirements Guidance

                                       Reporting Requirements Guidance

   1
       Due Dates

   Due dates are prescribed under Rule S1A/S1.3.1(2) and, in the case of the annual audited return, ASX
   Rules 4.9.5 and 4.9.10 or ACH Rules 4.4.3 and 4.5.7.
   2
       Late Lodgement Fees

   Late lodgement fees are prescribed under ASX Rule 1.15 or ACH Clearing Rule 1.18.

   Late lodgement fees set out in this table are current at the date of this Handbook, but may change.
   (Any changes to the late lodgement fee structure will be notified by ASX/ACH via Circular).

   Should any return remain outstanding beyond the due date, disciplinary action may be taken.

   3
       Annual Audited Capital Liquidity Return

   All Participants should lodge the documents as specified in the section on the Audited Capital
   Liquidity Return above.


                       (iii)   Other Acceptable Signatories for Corporations

   Returns are required to be signed by a director/s of the Participant as outlined in section (b)
   above. It would be acceptable for an alternate director to sign a return once the Participant
   has advised ASX Compliance of the appointment details of the alternate director and provided
   a statement that the Participant’s constitution permits the appointment of the alternate
   director. An alternate director is a specific term under section 201K of the Corporations Act
   2001 and means a person who has been appointed to exercise some or all of a director’s
   powers (usually when a director is unable to do so themselves). Section 201K(3) provides
   that where an alternate director exercises those powers, it is as if the director has exercised it
   theirself.

   However, it is not acceptable for returns to be signed by a person (non-director) that has been
   delegated authority under a power of attorney. This is because a director cannot delegate a
   personal responsibility such as signing capital returns.

                       (iv)    Procedures for Granting Extensions to Returns Lodgement

   To ensure that requests for extensions are processed and monitored efficiently, and late
   returns are accurately determined, ASX/ACH requires that Participants observe the following
   procedures when seeking an extension for the lodgement of returns.

   Prior to the due date, a Participant seeking an extension must email a request through to
   asx.returns@asx.com.au or ach.returns@asx.com.au (as applicable). Participants must
   include in the email:

          1.       reason for the late lodgement of the return,




Reporting Requirements Guidance                 February 2009                                    Page 1717
Capital Liquidity                                                                               Section 4
Handbook                                                        Risk Based Capital Requirements Guidance

                                    Reporting Requirements Guidance

         2.     the revised date for lodgement. It is unlikely that an extension for a monthly return
                will be granted for more than two Business Days. If the return is received after the
                revised due date then a late lodgement fee will apply from this date, and

         3.     contact details for the person(s) responsible for the completion of the return.

   ASX/ACH will respond to the Participant via return email to confirm the receipt of the email
   and to approve or refuse the extension. Until such time as the Participant receives this
   confirmation, an extension has not been granted.

   Extensions will not be granted by telephone. It is the responsibility of the Participant to
   ensure it does not assume an extension has been granted until confirmation has been received
   via email. This procedure will assist both ASX/ACH and Participants by creating an audit
   trail of extensions requested and granted.

   ASX/ACH will be monitoring closely the frequency for which Participants request extensions
   for lodgement of returns. ASX/ACH will take into account valid reasons for granting
   extensions and this will only be in respect of isolated and extraordinary circumstances.
   Further, ASX/ACH expects that the Participant has sufficient resources to ensure that returns
   can be completed at any time and that the process is not reliant on one employee within the
   organisation.




Reporting Requirements Guidance              February 2009                                        Page 1718
    Capital Liquidity                                                                                     Section 4
    Handbook                                                              Risk Based Capital Requirements Guidance

                                             Reporting Requirements Guidance


                   (d)        INDICATIVE TIMETABLE OF PAGES REQUIRING COMPLETION
    Page            Section            Adhoc Return                   Summary Capital       Capital    Audited     Statutory
 Description          No.                                             Liquidity Return     Liquidity    Capital     Decl’n
                                                                                            Return     Liquidity
                                                                                                        Return
                                ASD    Ad     Daily   Weekly    Ad        Daily   Weekly    Monthly    Annually      Bi
                               Repay   Hoc                      Hoc                                                Annually

Adhoc Return         N/A
Profile              N/A
Operational              1
Risk
Requirement
Calculation
Counterparty             2
Risk                                                             1          1        1         1           1
Requirement
Large Exposure           3
Risk                                                             1          1        1         1           1
Requirement
Position Risk            4
Requirement                                                      1          1        1         1           1


Underwriting             5                                      N/A       N/A      N/A        N/A        N/A
Risk
Requirement
Non-Standard             6
Risk                                                             1          1        1         1           1
Requirement
Core Liquid              7
Capital
Calculation
Liquid Capital           8
Calculation
Liquid Margin            9
Calculation
Ratio of Liquid          9
Capital to Total
Risk
Requirement
Income                   10
Statement
                         11
Balance Sheet




    Reporting Requirements Guidance                   February 2009                                      Page 1719
    Capital Liquidity                                                                                    Section 4
    Handbook                                                             Risk Based Capital Requirements Guidance

                                            Reporting Requirements Guidance

     Page           Section           Adhoc Return                   Summary Capital       Capital     Audited     Statutory
  Description         No.                                            Liquidity Return     Liquidity     Capital     Decl’n
                                                                                           Return      Liquidity
                                                                                                        Return
                               ASD    Ad     Daily   Weekly    Ad        Daily   Weekly    Monthly     Annually      Bi
                              Repay   Hoc                      Hoc                                                 Annually

                      12
Balance Sheet
Details - Cash
& Cash
Equivalents,
Related/
Associated
Persons,
Underwriting/G
uarantees,
Legal
Proceedings/
Insurance/
Encumbrances/
Credit Facilities
Balance Sheet         12
Details –                                                                                     2
Leases/Other,
Credit Facilities
& Overdraft
Directors             13
Statement
Additional            16
Comments
Statistical           17
Information                                                                                   2


Key Risks and        N/A
Internal
Systems
Statement
Audit report on      N/A
financial
information
Statutory            N/A
accounts                                                                                                   3


Group structure      N/A
chart
Partners             N/A
Statutory                                                                                                          paper copy
Declarations                                                                                                          only
        1
          If exposure exists.
        2
          March, June, September and December month ends only.
        3
          If required to be prepared under the Corporations Act 2001 (or equivalent laws for foreign
        Participants).




    Reporting Requirements Guidance                  February 2009                                      Page 1720
Capital Liquidity                                                                                  Section 4
Handbook                                                           Risk Based Capital Requirements Guidance

                                  Reporting Requirements Guidance




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