Document ID: chunk:federal_register_of_legislation:F2023L00349:body:0:p29
Version: federal_register_of_legislation:F2023L00349
Segment Type: other
Provision Reference: 
Character Range: 89553–92725

(APS 117).

General directions and notes

Reporting entity

These forms are to be completed at Level 1 and Level 2[2] by each ADI (subject to the paragraph following the table) that is included in one of the classes of ADI to which these forms apply, as set out in the following table.

Class of ADI                              Reporting required
Bank – Advanced or Applicant Advanced[3]  Yes
Bank – Standardised                       Yes
Branch of a Foreign Bank                  Yes[4]
Building Society                          Yes
Credit Union                              Yes
Provider of Purchased Payment Facilities  No
Other ADI                                 Yes

If an ADI is a subsidiary of an authorised non-operating holding company (NOHC), the report at Level 2 is to be provided by the ADI's immediate parent NOHC.[5]

Securitisation deconsolidation principle

Except as otherwise specified in these instructions, the following applies:

      1. Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation 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 non-consolidated independent third parties for regulatory reporting purposes, irrespective of whether the SPVs (or their assets) are consolidated for accounting purposes;

       (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; and

       (c)          the underlying exposures (i.e. the pool) under such a securitisation may be excluded from the calculation of the ADI's regulatory capital (refer to APS 120). However, the ADI must still hold regulatory capital for the securitisation exposures[6] that it retains or acquires and such exposures are to be reported in reporting form ARF 120.0 Standardised – Securitisation or the series of reporting forms ARF 120.1A to ARF 120.1C IRB – Securitisation (as appropriate). The risk-weighted assets relating to such securitisation exposures must also be reported in reporting form ARF 110.0 Capital Adequacy.

    2.                   Where an ADI (or a member of its Level 2 consolidated group) participates in a securitisation that does not meet APRA's operational requirements for regulatory capital relief under APS 120, or the ADI elects to treat the securitised assets as on-balance sheet assets under Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk or Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk, such exposures are to be reported as on-balance sheet assets in APRA's regulatory reporting returns. In addition, these exposures must also be reported as a part of the ADI's total securitised assets within reporting form ARF 120.2 Securitisation – Supplementary Items.

Reporting period and timeframes for lodgement

The forms are to be completed as at the last day of the stated reporting period (i.e. the relevant