Document ID: chunk:federal_register_of_legislation:F2023L00728:front:0:p5
Version: federal_register_of_legislation:F2023L00728
Segment Type: other
Provision Reference: 
Character Range: 11350–14006

in the value of the fund's capital base due to credit or market risks.

                                 This is calculated in accordance with Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge.

C
Combined Stress Scenario Adjustment  This Combined Stress Scenario tests whether the tax benefits recognised in determining the Insurance Risk Charge and the Asset Risk Charge can be offset against deferred tax liabilities. It also tests whether any future management actions allowed for in the calculation of the Insurance Risk Charge and the Asset Risk Charge would be achievable. This item also recognises any second order interactions between the asset and insurance risk stresses.

                                     This adjustment must be determined in accordance with Prudential Standard LPS 110 Capital Adequacy (LPS 110).

I
Insurance Risk Charge  The Insurance Risk Charge is the minimum amount of capital required to be held against insurance risks. The Insurance Risk Charge relates to the risk of adverse impacts due to movements in future mortality, morbidity, longevity, servicing expenses and lapses.

                       This is to be determined in accordance with Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge.

L
Life company fund  This means the type of life company fund. Possible types are:

                        * statutory fund;
                        * shareholder fund;
                        * benefit fund; and
                        * management fund.

O
Operational Risk Charge  The Operational Risk Charge is the minimum amount of capital required to be held against operational risks. The Operational Risk Charge relates to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.

                         This is determined in accordance with Prudential Standard LPS 118 Capital Adequacy: Operational Risk Charge.

P
Prescribed capital amount  The prescribed capital amount for a life company is the sum of the prescribed capital amounts of each of its funds.

                           This is determined in accordance with LPS 110.

Specific Instructions

Table 1: Adjustments and exclusions

Reporting basis

Report data for each individual life company fund. This table applies to statutory, shareholder, benefit, and management funds.

Report all information as at the reporting date.

Units of measurement

Values in this table must be completed in whole Australian dollars.

   Name                                             Valid values                               Description