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Reporting Standard ARS 222.0
Exposures to Related Entities
Objective of this reporting standard
This Reporting Standard sets out requirements for the provision of information to APRA
relating to an authorised deposit-taking institution’s exposures to related entities.
It includes Reporting Form ARF 222.0 Exposures to related entities and Reporting Form
ARF 222.1 Exposures to related entities – foreign ADI and associated specific instructions
and should be read in conjunction with Prudential Standard APS 222 Associations withRelated Entities.
Authority
1.

This Reporting Standard is made under section 13 of the Financial Sector (Collectionof Data) Act 2001.

Purpose2.

Information collected under this Reporting Standard is used by APRA for the purposeof prudential supervision. It may also be used by the Reserve Bank of Australia (RBA)
and the Australian Bureau of Statistics (ABS).

Application
3.

This Reporting Standard applies to all authorised deposit-taking institutions (ADIs)
with the exception of providers of purchased payment facilities (PPFs).

Commencement
4.

This Reporting Standard applies to reporting periods ending on or after 1 January
2020.

Information required5.

A locally incorporated ADI to which this Reporting Standard applies must provide
APRA with the information required by the Reporting Form ARF 222.0 Exposures torelated entities (ARF 222.0) designated for an ADI on a Level 1 basis for eachreporting period.

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6.

July 2018

A foreign ADI to which this Reporting Standard applies must provide APRA with theinformation required by Reporting Form ARF 222.1 Exposures to related entities –
foreign ADI (ARF 222.1) designated for a foreign ADI on a domestic book basis foreach reporting period.

Form and method of submission
7.

The information required by this Reporting Standard must be given to APRA in anelectronic format using a method notified by APRA prior to submission.

Reporting periods and due dates
8.

Subject to paragraph 10 of this Reporting Standard, an ADI to which this ReportingStandard applies must provide the information required by this Reporting Standard foreach quarter based on the financial year (within the meaning of the Corporations Act
2001) of the ADI.

9.

Subject to paragraph 11 of this Reporting Standard, the information required by thisReporting Standard must be provided to APRA within 28 calendar days after the endof the reporting period to which the information relates.

10.

APRA may change the reporting periods, or specified reporting periods, for aparticular ADI, to require it to provide the information required by this ReportingStandard more frequently, or less frequently, having regard to:

11.

(a)

the particular circumstances of the ADI;(b)

the extent to which the information is required for the purposes of prudential
supervision of the ADI; and(c)the requirements of the RBA and the ABS.

APRA may grant an ADI an extension of a due date in which case the new date willbe the date specified in the notice of extension.
Note: For the avoidance of doubt, if the due date for a particular reporting period falls on a day otherthan a usual business day, an ADI is nonetheless required to submit the information required no later
than the due date.

Quality control
12.

All information provided by an ADI under this Reporting Standard must be the productof systems, processes and controls that have been reviewed and tested by the external
auditor of the ADI as set out in Prudential Standard APS 310 Audit and Related
Matters. Relevant standards and guidance statements issued by the Auditing andAssurance Standards Board provide information on the scope and nature of the review
and testing required from external auditors. This review and testing must be done on
an annual basis or more frequently if necessary to enable the external auditor to form
an opinion on the accuracy and reliability of the information provided by an ADI under
this Reporting Standard.

13.

All information provided by an ADI under this Reporting Standard must be subject tosystems, processes and controls developed by the ADI for the internal review and
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July 2018

authorisation of that information. These systems, processes and controls are to assure
the completeness and reliability of the information provided.
Authorisation
14.

When an officer of an ADI submits information under this Reporting Standard using
the method notified by APRA, the officer must digitally sign the relevant information
using a digital certificate acceptable to APRA.

Minor alterations to forms and instructions
15.

APRA may make minor variations to:(a)a form that is part of this Reporting Standard, and the instructions to such a form,
to correct technical, programming or logical errors, inconsistencies oranomalies; or(b)

the instructions to a form, to clarify the application to the form,

without changing any substantive requirement in the form or instructions.
16.

If APRA makes such a variation it must notify each ADI that is required to reportunder this Reporting Standard.

Transition
17.

An ADI must report under the old Reporting Standard in respect of a transitional
reporting period. For these purposes:
old Reporting Standard means the Reporting Standard revoked by the determinationthat makes this Reporting Standard (being the Reporting Standard which thisReporting Standard replaces), as in force immediately before the commencement of
this Reporting Standard.
transitional reporting period means a reporting period under the old ReportingStandard:(a)that ended on or before 31 December 2019; and(b)in relation to which the ADI was required, under the old Reporting Standard, toreport by a date on or after the date of revocation of the old Reporting Standard.

Note: For the avoidance of doubt, if an ADI was required to report under an old Reporting Standard,
and the reporting documents were due before the date of revocation of the old Reporting Standard, the
ADI is still required to provide the overdue reporting documents in accordance with the old ReportingStandard.

Interpretation
18.

In this Reporting Standard:
AASB has the meaning given in section 9 of the Corporations Act 2001.
ADI means an authorised deposit-taking institution within the meaning of the Banking
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July 2018

Act 1959.
APRA means the Australian Prudential Regulation Authority established under theAustralian Prudential Regulation Authority Act 1998.
due date means the relevant due date under paragraph 9 or, if applicable, paragraph
11 of this Reporting Standard.
foreign ADI has the meaning given in section 5 of the Banking Act 1959.
Level 1 has the meaning given in Prudential Standard APS 001 Definitions (APS 001).
locally incorporated means incorporated in Australia or in a State or Territory ofAustralia, by or under a Commonwealth, State or territory law.
provider of purchased payment facilities means an ADI that is subject to acondition on its authority under section 9 of the Banking Act 1959 confining thebanking business that the ADI is authorised to carry on to providing purchased
payment facilities.
reporting period means a period mentioned in paragraph 8 or, if applicable,
paragraph 10 of this Reporting Standard.
19.

Unless the contrary intention appears, a reference to an Act, Prudential Standard,
Reporting Standard or Australian Accounting or Auditing Standard is a reference tothe instrument as in force or existing from time to time.

20.

Where this Reporting Standard provides for APRA to exercise a power or discretion,
this power or discretion is to be exercised in writing.

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ARF_222_0: Exposures to related entities
Australian Business Number

Institution Name

Reporting Period

Scale Factor
Millions to one decimal place for banks
Whole dollars no decimal place for ADIs other than banks

Reporting Consolidation
Level 1

Section A: Exposures to related entities
1. Twenty largest exposures to related entities and all those exposures to related entities exceeding or equal to 10% of Tier 1 Capital

Related entity
name

Legal
EntityIdentifier

Relatedentitycategory

Related entity
sectorOn-balance
sheet
exposures– equity
investment

(1)

(2)

(3)

(4)

(5)

Regulated

Banking

Nonregulated

Insurance

On-balance
sheet
exposures– otherOff-balance
sheet
exposures –non-marketrelated

Off-balance
sheet
exposures –marketrelated

Total
exposures

Total
exposures as% of Tier 1
Capital

(6)

(7)

(8)

(9)

(10)

Superannuation
SPV
Other financial
institution
Other
counterparties

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1.1. Total
2. Twenty largest exposures to related entities and all those exposures to related entities exceeding or equal to 10% of Tier 1 Capital(without credit risk mitigation effects)

Related entity
name

Legal
EntityIdentifier

Relatedentitycategory

Related entity
sectorOn-balance
sheet
exposures– equity
investment

(1)

(2)

(3)

(4)

(5)

Regulated

Banking

Nonregulated

Insurance

On-balance
sheet
exposures– otherOff-balance
sheet
exposures –non-marketrelated

Off-balance
sheet
exposures –marketrelated

Total
exposures

Total
exposures as% of Tier 1
Capital

(6)

(7)

(8)

(9)

(10)

Superannuation
SPV
Other financial
institution
Other
counterparties

2.1. Total

Section B: Extended Licensed Entity
3. ADI exposures to all ELE subsidiaries

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Related entity
name

Legal
EntityIdentifier

Relatedentitycountry

On-balance sheet
exposures –equity investment

On-balance
sheet
exposures –other

Off-balance sheet
exposures – nonmarket-related

Off-balance
sheet exposures– market-related

Total
exposures

Total
exposures as% of Tier 1
Capital

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Countrylist

3.1. Total

4. Exposures of all ELE subsidiaries which are established to hold or invest in assets

Related entity
name

Legal
EntityIdentifier

Relatedentitycountry

On-balance
sheet
exposures –loans

On-balance
sheet
exposures –other

Off-balance sheet
exposures – nonmarket-related

Off-balance sheet
exposures –market-related

Total
exposures

Total exposures
as % of Tier 1
Capital

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Country list

4.1. Total

Section C: Excluded exposures
5. Excluded exposures - settlement exposures to related entities exceeding or equal to 10% of Tier 1 Capital

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Related entity
name

Legal
EntityIdentifier

Related entity
category

Related entity
sectorOn-balance
sheet
exposures– loans

(1)

(2)

(3)

(4)

(5)

Regulated
Non-regulated

BankingOn-balance
sheet
exposures –other

Off-balance
sheet
exposures –non-market
relatedOff-balance
sheet
exposures –marketrelated

Total
exposures

Total
exposures
as % of Tier
1 Capital

(6)

(7)

(8)

(9)

(10)

Insurance
Superannuation
SPV
Other financial
institution
Other
counterparties

5.1. Total

Memorandum items
6. Tier 1 Capital
7. Aggregate exposure to all related ADIs (including overseas based equivalents)
8. Aggregate exposure to all related entities (other than related ADIs and related overseas based equivalents)
8.1 of which: to non-regulated related entities

Section D: Substantial shareholdings
9. Substantial shareholders of the ADI

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Substantial
shareholder’s
name

Legal
EntityIdentifier

Percentage
holding in the
ADI

(1)

(2)

(3)

July 2018

10. Movements of substantial shareholdings
Substantial
shareholder’s
name

Legal
EntityIdentifier

Movements
during thequarter

(1)

(2)

(3)

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ARF_222_1: Exposures to related entities - foreign ADIAustralian Business Number

Institution Name

Reporting Period

Scale Factor
Millions to one decimal place

Reporting Consolidation
Domestic book
1. Exposures to head office, overseas branches, Australian and overseas subsidiaries
Related entity
nameLegal Entity
Identifier

(1)

(2)

Related entity sector

On-balance sheet
exposures

Off-balance sheet
exposures - nonmarket-related

Off-balance sheet
exposures market-related

Total exposures

(3)

(4)

(5)

(6)

(7)

Banking
Insurance
Superannuation
SPV
Other financial institution
Other counterparties

1.1. Total

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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(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 withRelated 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.

2.

Where an ADI (or a member of its Level 2 consolidated group) participates in asecuritisation 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 nonconsolidated 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.

Where an ADI (or a member of its Level 2 consolidated group) participates in asecuritisation that does not meet APRA’s operational requirements for regulatory capitalrelief 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.

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.

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Unit of measurement
This form should be completed in Australian dollars (AUD) in accordance with the units set
out for each class of ADI in the following table. However, APRA may require an ADI to apply
a different unit of measurement.
Class of ADI

Units

Banks

Millions of dollars rounded to one decimal place

All Other ADIs

Whole dollars with no decimal place

Amounts denominated in foreign currency are to be converted to AUD in accordance withAccounting Standard AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB
121).
Basis of preparation
For the purposes of this form, ADIs are to report all exposures including both the effect of
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).
In completing this form, ADIs are to apply the requirements for netting specified in Attachment
A of APS 221.
Definitions
Terms highlighted in bold italics indicate that the definition is provided in these instructions.
Credit risk mitigation (CRM) means the CRM techniques allowed in Prudential Standard APS
112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112).
ELE subsidiary has the meaning given in Attachment A of APS 222.
Extended Licensed Entity (ELE) has the meaning given in Attachment A of APS 222.
Excluded exposures means exposures excluded from large exposures under paragraph 18 of
APS 221.
Exposure is defined in paragraphs 33 to 36 of APS 222.
Legal Entity Identifier is a 20-digit, alpha-numeric code. ADIs are to report the ISO 17442
Legal Entity Identifier code, available at https://www.gleif.org/en/lei/search.
Market related means off-balance sheet exposures arising from market related contracts.
Refer to APS 112 for examples of these contracts.
Non-market related means off-balance sheet exposures that are not market related. Refer to
APS 112 for examples of these commitments.
Off-balance sheet exposures means the off-balance sheet portion of any exposure, measuredin accordance with Attachment A of APS 221.
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DRAFTOn-balance sheet exposures means the on-balance sheet portion of any exposure, measuredin accordance with Attachment A of APS 221.
Related ADI is a related entity which is an ADI.
Related entity is defined in APS 222.
Related entity category means the category of the related entity.
Related entity country means the country where the related entity is domiciled. ADIs are toreport the relevant country as named in the ISO 3166 country code developed by theInternational
Organization
forStandardization
(ISO)
and
availableat
http://www.iso.org/iso/country_codes.
Related entity name means the legal name of the related entity.
Related entity sector means the sector of the related entity of the exposure. These are:•banking;•

insurance;•

superannuation;

•

SPVs;

•

other financial institutions; and•other counterparties.

Settlement exposures has the meaning given by paragraph 18(g) of APS 221.
Substantial shareholder has the meaning given by paragraph 8(f) of APS 222.
Tier 1 Capital has the meaning given in Prudential Standard APS 111 Capital Adequacy:
Measurement of Capital (APS 111).
Related entity category
Regulated means the related entity is regulated by APRA or an equivalent banking,superannuation or insurance prudential regulator overseas.
Non-regulated means the related entity is not regulated by APRA or an equivalent banking,superannuation or insurance prudential regulator overseas.
Related entity sectors
Banking institution means an authorised deposit-taking institution within the meaning of the
Banking Act 1959, as well as banking institutions authorised in other jurisdictions.
Insurance corporations means:•

life insurance corporations registered under the Life Insurance Act 1995;•

general insurance corporations authorised under the Insurance Act 1973 (or by
virtue of determinations made by APRA under the General Insurance Reform Act
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2001);•

private health insurance corporations registered under the Private Health Insurance(Prudential Supervision) Act 2015;•

the Export Finance Insurance Corporation;•

private sector and government-owned general and health insurance enterprises,
both proprietary and mutual; and•any insurance corporation overseas.

Other counterparties includes any related entity that is not a banking institution, an SPV,
insurance corporation, superannuation fund or other financial institutions.
Other financial institutions means all entities mainly engaged in financial intermediation andthe provision of auxiliary financial services, other than banking institutions, insurance
corporations, superannuation funds.
SPV means Special Purpose Vehicle.
Superannuation funds means complying funds for the purposes of the Superannuation
Industry (Supervision) Act 1993, other autonomous funds established for the benefit of public
sector employees and any overseas funds designed specifically for the purpose of providing apension or other income stream on retirement.
Specific instructions
Section A: Exposures to related entities
Item 1

Report the twenty largest exposures to related entities in proportion to Tier 1
Capital, and also report all exposures to related entities which exceed or are
equal to ten per cent of Tier 1 Capital.
In column 1, report the related entity name of the related entity for eachexposure to a related entity.
In column 2, report the Legal Entity Identifier of the related entity for eachexposure to a related entity. Otherwise, report N/A if the related entity has no
Legal Entity Identifier.
In column 3, report the related entity category of the related entity for eachexposure.
In column 4, report the related entity sector of the related entity for eachexposure.
In column 5, report the on-balance sheet exposures that relate to the book valueof all equity investments in the related entity.
In column 6, report the on-balance sheet exposures that do not relate to equity
investments in the related entity for each exposure.
In column 7, report the non-market related, off-balance sheet exposures for the

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related entity for each exposure.
In column 8, report the market related, off-balance sheet exposures for the
related entity for each exposure.
Column 9 is derived as the total of columns 5, 6, 7 and 8, being the total exposurefor the related entity.
Column 10 is derived as the ratio of column 9 to Tier 1 Capital reported in item
6.
Item 1.1

Item 1.1 is derived as the total of the twenty largest exposures to related entities
and all those exposures to related entities exceeding or equal to ten per cent ofTier 1 Capital.
Columns 5, 6, 7, 8 and 9 of item 1.1 are derived as the sum of columns 5, 6, 7, 8
and 9 of item 1 respectively.
Column 10 of item 1.1 is derived as the ratio of column 9 of item 1.1 to Tier 1
Capital reported in item 6.

Item 2

Report the twenty largest exposures to related entities in proportion to Tier 1
Capital and also report all exposures to related entities which exceed or are equal
to ten per cent of Tier 1 Capital, before CRM.
In column 1, report the related entity name of the related entity for eachexposure to a related entity.
In column 2, report the Legal Entity Identifier of the related entity for eachexposure to a related entity. Otherwise, report N/A if the related entity has no
Legal Entity Identifier.
In column 3, report the related entity category of the related entity for eachexposure.
In column 4, report the related entity sector of the related entity for eachexposure.
In column 5, report the on-balance sheet exposures that relate to the book valueof all equity investments in the related entity, before CRM.
In column 6, report the on-balance sheet exposures that do not relate to equity
investments in the related entity for each exposure, before CRM.
In column 7, report the non-market related, off-balance sheet exposures for the
related entity for each exposure, before CRM.
In column 8, report the market related, off-balance sheet exposures for the
related entity for each exposure, before CRM.
Column 9 is derived as the total of columns 5, 6, 7 and 8, being the total exposurefor the related entity, before CRM.
Column 10 is derived as the ratio of column 9 to Tier 1 Capital reported in item
6.

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Item 2.1

Item 2.1 is derived as the total of the twenty largest exposures to related entities
and all those exposures to related entities exceeding or equal to ten per cent ofTier 1 Capital.
Columns 5, 6, 7, 8 and 9 of item 2.1 are derived as the sum of columns 5, 6, 7, 8
and 9 of item 1 respectively.
Column 10 of item 2.1 is derived as the ratio of column 9 of item 2.1 to Tier 1
Capital reported in item 6.

Section B: Extended Licensed Entity
Item 3

Report ADI exposures to all ELE subsidiaries as at the end of the reporting
period.
In column 1, report the related entity name of the ELE subsidiary for eachexposure.
In column 2, report the Legal Entity Identifier of the related entity for eachexposure to a related entity. Otherwise, report N/A if the related entity has no
Legal Entity Identifier.
In column 3, report the related entity country of the ELE subsidiary for eachexposure, using the country list.
In column 4, report the on-balance sheet exposures that relate to the book valueof all equity investments in the ELE subsidiary.
In column 5, report the on-balance sheet exposures that do not relate to equity
investments in the ELE subsidiary for each exposure.
In column 6, report the non-market related, off-balance sheet exposures for the
ELE subsidiary for each exposure.
In column 7, report the market related, off-balance sheet exposures for the
ELE subsidiary for each exposure.
Column 8 is derived as the total of columns 4, 5, 6 and 7 being the total exposurefor the ELE subsidiary.
Column 9 is derived as the ratio of column 8 to Tier 1 Capital reported in item
6.

Item 3.1

Item 3.1 is derived as the total of the ADI exposures to all ELE subsidiaries.
Columns 4, 5, 6, 7 and 8 of item 3.1 are derived as the sum of columns 4, 5, 6, 7
and 8 of item 3 respectively.
Column 9 of item 3.1 is derived as the ratio of column 8 of item 3.1 to Tier 1
Capital reported in item 6.

Item 4

Report exposures of all ELE subsidiaries which are established to hold or invest

ARF 222.0 Instructions - 6

DRAFTin assets, as at the end of the reporting period.
In column 1, report the related entity name of the ELE subsidiary for eachexposure.
In column 2, report the Legal Entity Identifier of the ELE subsidiary for eachexposure. Otherwise, report N/A if the ELE subsidiary has no Legal Entity
Identifier.
In column 3, report the related entity country of the ELE subsidiary for eachexposure, using the country list.
In column 4, report the on-balance sheet exposures that relate to the book valueof all loans and advances of the ELE subsidiary for each exposure, including
any accrued income associated with the exposure (e.g. interest, dividends).
In column 5, report the on-balance sheet exposures that do not relate to loans
and advances of the ELE subsidiary.
In column 6, report the non-market related, off-balance sheet exposures of the
ELE subsidiary for each exposure.
In column 7, report the market related, off-balance sheet exposures of the ELE
subsidiary for each exposure.
Column 8 is derived as the total of columns 4, 5, 6 and 7 being the total exposureof each ELE subsidiary.
Column 9 is derived as the ratio of column 8 to Tier 1 Capital reported in item 6.
Item 4.1

Item 4.1 is derived as the total of the exposures of all ELE subsidiaries.
Columns 4, 5, 6, 7 and 8 of item 3.1 are derived as the sum of columns 4, 5, 6, 7
and 8 of item 4 respectively.
Column 9 of item 4.1 is derived as the ratio of column 8 of item 4.1 to Tier 1
Capital reported in item 6.

Section C: Excluded exposures
Item 5

Report excluded exposures to a related entity, relating to settlement exposures,
exceeding or equal to ten per cent of Tier 1 Capital, as at the end of thereporting period.
In column 1, report the related entity name of the related entity for eachexposure.
In column 2, report the Legal Entity Identifier of the related entity for eachexposure to a related entity. Otherwise, report N/A if the related entity has no
Legal Entity Identifier.
In column 3, report the related entity category of the related entity for eachexposure.

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In column 4, report the related entity sector of the related entity for eachexposure.
In column 5, report the on-balance sheet exposures that relate to the book valueof all loans and advances to the related entity.
In column 6, report the on-balance sheet exposures that do not relate to loans
and advances to the related entity for each exposure.
In column 7, report the non-market related, off-balance sheet exposures for the
related entity for each exposure.
In column 8, report the market related, off-balance sheet exposures for the
related entity for each exposure.
Column 9 is derived as the total of columns 5, 6, 7 and 8 being the total
exposure for the related entity.
Column 10 is derived as the ratio of column 9 to Tier 1 Capital reported in item
6.
Item 5.1

Item 5.1 is derived as the total of settlement exposures to related entities
exceeding or equal to ten per cent of Tier 1 Capital.
Columns 5, 6, 7, 8 and 9 of item 5.1 are derived as the sum of columns 5, 6, 7, 8
and 9 of item 5 respectively.
Column 10 of item 5.1 is derived as the ratio of column 9 of item 5.1 to Tier 1
Capital reported in item 6.

Memorandum Items
Item 6

Report in item 6 the Tier 1 capital at Level 1 as at the end of the period.

Item 7

Report in item 7 the aggregate exposure to all related ADIs, including overseas
based equivalents.

Item 8

Report in item 8 the aggregate exposure to all related entities other than related
ADIs and related overseas based equivalents.

Item 8.1

Report in item 8.1 the aggregate exposure to non-regulated related entities.

Section D: Substantial Shareholdings
Item 9In column 1, report the legal name of the substantial shareholder of the ADI.
In column 2, report the Legal Entity Identifier of the substantial shareholder, if
applicable. Otherwise, report N/A if the substantial shareholder has no Legal
Entity Identifier.
In column 3, report the substantial shareholder’s percentage holding of the ADI’s

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share capital.
Item 10

Report the movement of substantial shareholdings in the ADI where the movement
during the quarter is equal to or greater than one percent of the shareholding.
In column 1, report the related entity name of the substantial shareholder.
In column 2, report the Legal Entity Identifier of the substantial shareholder, if
applicable. Otherwise, report N/A if the substantial shareholder has no Legal
Entity Identifier.
In column 3, report the percentage movement, during the quarter, in a substantial
shareholder’s holdings if the movement is equal to or greater than one percent of
the shareholding. Otherwise, report N/A.

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Reporting Form ARF 222.1
Exposures to related entities – foreign ADIs
Instruction Guide
This instruction guide is designed to assist in the completion of Reporting Form ARF 222.1(ARF 222.1). This form collects information on the exposures of the Australian branch of aforeign authorised deposit-taking institution (foreign ADI) to the head office, other branches,and subsidiaries of the foreign ADI.
In completing this form, foreign ADIs must refer to Prudential Standard APS 222 Associations
with Related Entities (APS 222).

General directions and notes
Reporting entity
ARF 222.1 must be completed on a domestic book basis by all foreign ADIs.
Domestic books means an unconsolidated report of positions, transactions and otherinformation recorded on the Australian books of the body corporate authorised by APRA tocarry on banking business under the Banking Act 1959. Domestic books include transactions
and positions with both residents and non-residents that are recorded on the Australian booksof these entities.
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 foreign ADI.
Unit of measurement
This form should be completed in Australian dollars (AUD), in millions of dollars rounded to
one decimal place.
Amounts denominated in foreign currency are to be converted to AUD in accordance withAccounting Standard AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB
121).
Basis of preparation
For the purposes of this form, foreign ADIs must report all exposures. In completing this form,
foreign ADIs are to apply the requirements for netting specified in Attachment A of APS 221.
A foreign ADI may report using the requirements and definitions that it applies in reporting
exposures under the requirements of its home jurisdiction, unless otherwise notified by APRA.

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Definitions
Terms highlighted in bold italics indicate that the definition is provided in these instructions.
Related entity name means the legal name of the foreign ADI related entity.
Related entity sector means the type of sector of the foreign ADI related entity of the exposure.
These include:•banking;•

insurance;•

superannuation;

•

SPVs;

•

other financial institutions; and•other counterparties.

Credit risk mitigation (CRM) means the CRM techniques allowed in Prudential Standard APS
112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112).
Exposure is defined in paragraphs 33 to 36 of APS 222.
Foreign ADI related entities means the head office, individual overseas branches, andindividual Australian and overseas subsidiaries of the foreign ADI.
Legal Entity Identifier is a 20-digit, alpha-numeric code. ADIs are to report the ISO 17442
Legal Entity Identifier, available at https://www.gleif.org/en/lei/search.
Market related means off-balance sheet exposures arising from market related contracts.
Refer to APS 112 for examples of these contracts.
Non-market related means off-balance sheet exposures that are not market related. Refer to
APS 112 for examples of these commitments.
Off-balance sheet exposures means the off-balance sheet portion of any exposure, measuredin accordance with Attachment A of Prudential Standard APS 221 Large Exposures (APS
221).
On-balance sheet exposures means the on-balance sheet portion of any exposure, measuredin accordance with Attachment A of APS 221.
Related entity sector
Banking institution means an authorised deposit-taking institution within the meaning of the
Banking Act 1959, as well as banking institutions authorised in other jurisdictions.
Insurance corporation means:•

life insurance corporations registered under the Life Insurance Act 1995;•

general insurance corporations authorised under the Insurance Act 1973 (or by
virtue of determinations made by APRA under the General Insurance Reform Act
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2001);•

private health insurance corporations registered under the Private Health Insurance(Prudential Supervision) Act 2015;•

the Export Finance Insurance Corporation;•

private sector and government-owned general and health insurance enterprises,
both proprietary and mutual; and•any insurance corporation overseas.

Other counterparties includes any foreign ADI related entity that is not a banking institution,
an SPV, insurance corporation, superannuation fund or other financial institutions.
Other financial institutions means all entities mainly engaged in financial intermediation andthe provision of auxiliary financial services, other than banking institutions, insurance
corporations, superannuation funds, other counterparties.
SPV means Special Purpose Vehicle.
Superannuation funds means complying funds for the purposes of the Superannuation
Industry (Supervision) Act 1993, other autonomous funds established for the benefit of public
sector employees and any overseas funds designed specifically for the purpose of providing apension or other income stream on retirement.
Specific instructions
Section A: Exposures to head office, overseas branches, Australian andoverseas subsidiaries
Item 1

Report the exposures of a foreign ADI to foreign ADI related entities, as at the endof the reporting period. That is, report the exposures of the Australian branch to theforeign ADI’s head office, individual overseas branches, and individual Australianand overseas subsidiaries.
In column 1, report the related entity name for each exposure to foreign ADI
related entities.
In column 2, report the Legal Entity Identifier of the foreign ADI related entities
for each exposure to a foreign ADI related entity. Otherwise, report N/A if theforeign ADI related entity has no Legal Entity Identifier.
In column 3, report the related entity sector of the foreign ADI related entity foreach exposure.
In column 4, report the on-balance sheet exposures to each foreign ADI related
entity.
In column 5, report the non-market related, off-balance sheet exposures for theforeign ADI related entity for each exposure.
In column 6, report the market related, off-balance sheet exposures for the foreign
ADI related entity for each exposure.

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Column 7 is derived as the total of columns 4, 5, and 6, being the total exposure forthe foreign ADI related entity.
Item 1.1

Item 1.1 is derived as the total of the exposures of the Australian branch to head
office, to individual overseas branches, as well as to individual Australian andoverseas subsidiaries of the parent.
Columns 4, 5, 6 and 7 of item 1.1 are derived as the sum of columns 4, 5, 6 and 7of item 1 respectively.

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