Document ID: chunk:federal_register_of_legislation:F2023L00317:body:0:p7
Version: federal_register_of_legislation:F2023L00317
Segment Type: other
Provision Reference: 
Character Range: 17619–20440

appropriate counterparty grade to be used as a component of assets to be stressed under Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge.

It is calculated automatically by the form.

   1.12.      Total non-market related off-balance sheet items

This is the value of all off-balance sheet items that are not transacted in financial markets.

1.12.1. Parent entity

This is the total value of non-market related off-balance sheet items that are with the parent entity of the life company.

1.12.2. Controlled entities

This is the total value of non-market related off-balance sheet items that are with a controlled entity of the life company.

1.12.3. Associates / joint ventures

This is the total value of non-market related off-balance sheet items where the counterparty is an associate or joint venture.

1.12.4. Other related entities

This is the total value of non-market related off-balance sheet items that are with a related entity of the life company and has not been included in 1.12.1 to 1.12.3 above.

Section 2: Other Off-Balance Sheet Transactions

   2(1).        Approved Balance Available

Approved balance available relates to the total approved balance of the facility at the reporting date.

   2(2).        Undrawn Balance Available

Undrawn balance available relates to the balance of the facility that has not been used or drawn down by the life company at the reporting date.

   2.1. Standby Facilities

A standby facility is an arrangement in which a party has the right but not the obligation to draw down funds to a specified limit. Generally, the drawing party is required to provide written notice to trigger draw down (access to the funds) on these facilities.

   2.1.1.    Facilities with same day draw down

This relates to those standby facilities that can be drawn down (funds accessed) on the same day that notice is given by the life company of its intention to draw down on the standby facility.

   2.1.2.    Facilities with 2 - 5 day draw down

This relates to those standby facilities that can be drawn down (funds accessed) within two to five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a two-five day waiting period).

   2.1.3.    Facilities with greater than 5 day draw down

This relates to those standby facilities that can be drawn down (funds accessed) more than five days after notice is given by the life company of its intention to draw down on the standby facility (i.e. a five day waiting period).

   2.2. Bill acceptance / discount facilities

This relates to another form of liquidity/funding. The funding is provided to the life company by a facility that discounts bills (e.g. bank accepted bills). Principal and interest (discount) owing on the bill is