Document ID: chunk:federal_register_of_legislation:F2015L00579:body:0:p6
Version: federal_register_of_legislation:F2015L00579
Segment Type: other
Provision Reference: 
Character Range: 13569–16623

LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117).

An appropriate asset exposure category is to be selected from the drop down list.

1(5) Name of provider of eligible credit support

This column reports the registered business name of the counterparty (if any), providing eligible credit support (an eligible collateral item, guarantee, or letter of credit) to the reporting life company's asset exposures.

If no collateral or guarantee is provided, report 'N/A'.

1(6) Type of exposure after eligible credit support

This column reports the category of exposure where the eligible credit support held replaces the underlying asset exposure.

An appropriate asset exposure category is to be selected from the drop down list.

1(7) Counterparty grade after eligible credit support

This column reports the APRA counterparty grade of the exposure after applying the eligible credit support.

1(8) Exposure amount – on-balance sheet

This column reports the amount of on-balance sheet exposure (after allowance for eligible credit support). With the exception of exposures to reinsurance counterparties (see below), amounts reported here should be at fair value.

Reinsurance counterparty exposures should be reported here as the adjusted reinsurance assets, rather than the on-balance sheet exposure.  The adjusted reinsurance asset (in respect of the exposure to a reinsurance counterparty) is the amount by which the adjusted policy liabilities of the fund (as determined under Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital) would increase, if the adjusted policy liabilities were determined gross of that particular reinsurance exposure.

1(9) Exposure amount – off-balance sheet

This column reports the amount of off-balance sheet exposure (after allowance for eligible credit support).

Amounts reported here should be at fair value.

1(10) Exposure amount - total

This column reports the amount of total exposure (after allowance for eligible credit support). This column is calculated automatically as the sum of column (8) and column (9).

Section 2: Asset Concentration Risk Charge

Explanatory notes

Reporting threshold

This section is to be completed for each exposure to a group of related counterparties that is over the Asset Concentration Risk Charge limit specified in LPS 117.

Exposures to reinsurance counterparties that are below the Asset Concentration Risk Charge limit must be reported at least once each year, at the same time as Item 1.2 'VAF used for asset concentration limits for reinsurance assets' is reported.

Instructions for specific items

   (1)      Counterparty group name

This is the name of the group to which the counterparty to the exposure belongs.

   (2)      Eligible credit support applied?

If the exposure is covered by eligible credit support, indicate whether the fund has applied the eligible credit support to calculate the Asset Concentration Risk Charge.

   (3)      Type of exposure after eligible credit support

This column reports the