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No. 81 of 2013 Determinations/Prudential as made
This determination makes Reporting Standard SRS 532.0 Investment Exposure Concentrations.
Administered by: Treasury
Registered 13 Jun 2013
Tabling HistoryDate
Tabled Senate17-Jun-2013
Tabled HR17-Jun-2013
Date of repeal 01 Jul 2014
Repealed by Financial Sector (Collection of Data) (reporting standard) determination No. 24 of 2014 - SRS 532.0 - Investment Exposure Concentrations

Financial Sector (Collection of Data) (reporting standard) determination No. 81 of 2013

Reporting Standard SRS 532.0 Investment Exposure Concentrations

Financial Sector (Collection of Data) Act 2001

 

I, Steven John Davies, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) DETERMINE Reporting Standard SRS 532.0 Investment Exposure Concentrations, in the form set out in the Schedule, which applies to financial sector entities to the extent provided in paragraph 3 of the reporting standard.

 

Under section 15 of the Act, I DECLARE that the reporting standard applies to those financial sector entities on and after 1 July 2014.

 

This instrument commences on the date of registration on the Federal Register of Legislative Instruments.

 

Dated:  3 June 2013

 

[signed]

 

 

Steven John Davies

General Manager

Statistics

Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given by section 5 of the Act.


Schedule

 

Reporting Standard SRS 532.0 Investment Exposure Concentrations comprises the 29 pages commencing on the following page.


 

Reporting Standard SRS 532.0

Investment Exposure Concentrations

Objective of this Reporting Standard

This Reporting Standard sets out the requirements for the provision of information to APRA relating to movements in the investments of a registrable superannuation entity.

It includes Form SRF 532.0 Investment Exposure Concentrations and associated specific instructions and must be read in conjunction with Prudential Standard SPS 530 Investment Governance.

 

Authority

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

Purpose

2.             Information collected in Form SRF 532.0 Investment Exposure Concentrations (SRF 532.0) is used by APRA for the purposes of prudential supervision and publication, including assessing compliance with Prudential Standard SPS 530 Investment Governance. It may also be used by the Australian Bureau of Statistics.

Application and commencement

3.             This Reporting Standard applies to each registrable superannuation entity (RSE) licensee (RSE licensee) in respect of each RSE, defined benefit RSE, pooled superannuation trust (PST) and eligible rollover fund (ERF) within its business operations.[1]

4.             This Reporting Standard applies for reporting periods ending on or after 1 July 2014.

Information required

5.             An RSE licensee to which this Reporting Standard applies must provide APRA with the information required by SRF 532.0 in respect of each reporting period.

Forms and method of submission

6.             The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application or, where ‘Direct to APRA’ is not available, by a method notified by APRA, in writing, prior to submission.

Note: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.

Reporting periods and due dates

7.             Subject to paragraph 8, an RSE licensee to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each quarter based on the year of income of each RSE, defined benefit RSE, PST or ERF within its business operations.

8.             If, having regard to the particular circumstances of an RSE, defined benefit RSE, PST or ERF, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by paragraph 7, APRA may, by notice in writing, change the reporting periods for the particular RSE, defined benefit RSE, PST or ERF.

9.             The information required by this Reporting Standard must be provided to APRA:

(a)           within 28 calendar days after the end of the quarter to which the information relates[2]; and

(b)          in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.

10.         APRA may grant, in writing, an RSE licensee an extension of a due date with respect to one or more RSEs, defined benefit RSEs, PSTs or ERFs within its business operations, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

11.         The information provided by an RSE licensee under this Reporting Standard must be the product of systems, procedures and internal controls that have been reviewed and tested by the RSE auditor of the RSE, defined benefit RSE, PST or ERF to which the information relates.[3] This will require the RSE auditor to review and test the RSE licensee’s systems, procedures and internal controls designed to enable the RSE licensee to report reliable information to APRA. This review and testing must be done on:

(a)           an annual basis or more frequently if necessary to enable the RSE auditor to form an opinion on the reliability and accuracy of information; and

(b)          at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of SPS 310.

12.         All information provided by an RSE licensee under this Reporting Standard must be subject to systems, processes and controls developed by the RSE licensee for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the RSE licensee to ensure that an appropriate set of policies and procedures for the authorisation of information submitted to APRA is in place.

Authorisation

13.         When an officer or agent of an RSE licensee provides the information required by this Reporting Standard using the ‘Direct to APRA’ software, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate acceptable to APRA.

14.         If the information required by this Reporting Standard is provided by an agent who submits using the ‘Direct to APRA’ software on the RSE licensee’s behalf, the RSE licensee must:

(a)           obtain from the agent a copy of the completed form with the information provided to APRA; and

(b)          retain the completed copy.

15.         An officer or agent of an RSE licensee who submits the information under this Reporting Standard for, on behalf of, the RSE licensee must be authorised by either:

(a)           the Chief Executive Officer of the RSE licensee; or

(b)          the Chief Financial Officer of the RSE licensee.

Variations

16.         APRA may, by written notice to an RSE licensee, vary the reporting requirements of SRF 532.0 in relation to that RSE licensee or one or more RSEs, defined benefit RSEs, PSTs or ERFs within that RSE licensee’s business operations.

Interpretation

17.         In this Reporting Standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

Chief Executive Officer means the chief executive officer of the RSE licensee, by whatever name called, and whether or not he or she is a member of the Board of the RSE licensee[4];

Chief Financial Officer means the chief financial officer of the RSE licensee, by whatever name called;

defined benefit RSE means an RSE that is a defined benefit fund within the meaning given in Prudential Standard SPS 160 Defined Benefit Matters;

due date means the relevant date under paragraph 9 or, if applicable, paragraph 10;

eligible rollover fund (ERF) has the meaning given in section 10(1) of the SIS Act and, in relation to the period between 1 July 2013 and 31 December 2013, includes an existing ERF within the meaning given in section 391 of the SIS Act;

pooled superannuation trust (PST) has the meaning given in section 10(1) of the SIS Act;

reporting period means a period mentioned in paragraph 7(a) or 7(b) or, if applicable, paragraph 8;

RSE means a registrable superannuation entity as defined in section 10(1) of the SIS Act that is not a defined benefit RSE, PST, ERF, small APRA fund or single member approved deposit fund[5];

RSE auditor means an auditor appointed by the RSE licensee to perform functions under this Reporting Standard;

RSE licensee has the meaning given in section 10(1) of the SIS Act;

SIS Act means Superannuation Industry (Supervision) Act 1993; and

year of income has the meaning given in section 10(1) of the SIS Act.

 


SRF 532.0: Investment Exposure Concentrations

 

Australian Business Number

Institution Name

 

Reporting Period

Scale Factor

Reporting Consolidation

 

 

1.    Directly held investments - large exposures

 

Name

Value

Asset class type

Asset domicile type

Asset listing type

Fixed income type

(1)

(2)

(3)

(4)

(5)

(6)

Cash

Australia domicile

Listed

Government debt

Fixed income

International domicile

Unlisted

non Government debt

Equity

Not applicable

Not applicable

Mortgage debt

Property

 

 

Credit

Infrastructure

 

 

Not applicable

Commodities

 

 

 

Other

 

 

 

 

Fixed income currency type

Counterparty credit rating

Fixed income term

Mortgage type

International economy type

Exposure type

(7)

(8)

(9)

(10)

(11)

(12)

Australian dollars

Grade 1

Short term

Residential mortgage

Emerging markets

MySuper product

Other currency

Grade 2

Long term

Commercial mortgage

Developed markets

Defined benefit interests

Not applicable

Grade 3

Not applicable

Not applicable

Not applicable

Both MySuper product and defined benefit interests

 

Grade 4

 

 

 

Neither

 

Grade 5

 

 

 

 

 

Grade 6

 

 

 

 

 

Grade 7

 

 

 

 

 

Not applicable

 

 

 

 

 

1.1.  Total directly held large exposures

 

 

 


 

2.    Indirectly held investments - large exposures

 

2.1.  Indirectly held investments - large exposures by asset class

Name

ABN

Investment vehicle type

Investment vehicle domicile type

Asset class type

Asset domicile type

(1)

(2)

(3)

(4)

(5)

(6)

Cash management trust

Australia domicile

Cash

Australia domicile

Life company guaranteed

International domicile

Fixed income

International domicile

 

 

Life company investment linked

Not applicable

Equity

Not applicable

 

 

Listed retail trust

 

Property

 

 

 

Pooled superannuation trust

 

Infrastructure

 

 

 

Unlisted retail trust

 

Commodities

 

 

 

Wholesale trust

 

Other investments

 

 

 

Other indirect investment

 

 

 

 

Asset listing type

Fixed income type

Fixed income currency type

Value

Gearing proportion

(7)

(8)

(9)

(10)

(11)

Listed

Government debt

Australian dollars

 

 

Unlisted

Non Government debt

Other currency

 

 

Not applicable

Mortgage debt

Not applicable

 

 

 

Credit

 

 

 

 

Not applicable

 

 

 

 

2.2.  Total value of indirectly held large exposures

 

 

 

 

2.3.  Indirectly held investments - large exposures by MySuper products and defined benefits

Name

ABN

Associate

Review date

Exposure type

(1)

(2)

(3)

(4)

(5)

Yes

 

MySuper product

No

 

Defined benefit interests

 

 

Both MySuper product and defined benefit interests

 

 

Neither

 


 

3.    Indirectly held investments - exposure concentrations in underlying investment vehicles

 

Indirectly held investment vehicle name

Indirectly held investment vehicle ABN

Interposed associates

(1)

(2)

(3)

 

Underlying investment vehicle name

Underlying investment vehicle ABN

Type of underlying investment vehicle

Underlying investment value

Invests in investment vehicles

Associate

(4)

(5)

(6)

(7)

(8)

(9)

 

 

Cash management trust

 

Yes

Yes

Life company guaranteed

No

No

Life company investment linked

Listed retail trust

Pooled superannuation trust

Unlisted retail trust

Wholesale trust

Other indirect investment

 

Large exposures by country of investment

 

4.    Directly held investments - large exposures by country of investment

 

Country

Value

(1)

(2)

Country list

 

5.    Indirectly held investments - large exposures by international exposure

 

Domicile of investment vehicle

Associate

International region exposure

Country

Value

(1)

(2)

(3)

(4)

(5)

Country list

Yes

Global

Country list

No

Americas region

Not applicable

Asia region

Europe region

Mid East or Africa region

Oceania region

Individual country

 


 

Large exposures in unlisted investments

 

6.    Unlisted investments

 

Entity type

Name

ABN

Associate

Ownership percentage

Initial Cost

(1)

(2)

(3)

(4)

(5)

(6)

Unlisted corporation

Yes

 

Unlisted private trust

No

 

Limited partnership

 

Joint venture

 

 

Value

Distributions

Commitments outstanding

Exposure type

(7)

(8)

(9)

(10)

MySuper product

Defined benefit interests

Both MySuper product and defined benefit interests

Neither

 

 


Reporting Form SRF 532.0

Investment Exposure Concentrations

Instructions

These instructions assist completion of Reporting Form SRF 532.0 Investment Exposure Concentrations (SRF 532.0). SRF 532.0 collects information on investment exposure concentrations of an RSE. Information reported in SRF 532.0 is required primarily for prudential and publication purposes. Information reported on SRF 532.0 is also required for the purposes of the Australian Bureau of Statistics.

Reporting level

SRF 532.0 must be completed for each RSE, defined benefit RSE, pooled superannuation trust (PST) and eligible rollover fund (ERF).

Reporting basis and unit of measurement

Report all items on SRF 532.0 in accordance with the Australian Accounting Standards unless otherwise specified.

Assets and liabilities denominated in currencies other than AUD are to be converted to AUD using the mid-point rate (of market buying and selling spot quotations) effective as at the end of the reporting period. An RSE licensee is free to use those AUD exchange rates that it judges to be a representative closing mid-market rate as at the end of the reporting period. However, to ensure consistency across related returns and to assist in the reconciliation between these returns, an RSE licensee should attempt to use the same exchange rates across all returns to APRA.

Note: for the major currencies, an RSE licensee may want to use the exchange rates available in the Reserve Bank of Australia (RBA), which are available on the RBA website: http://www.rba.gov.au/statistics/hist-exchange-rates/index.html.

Items on SRF 532.0 must be reported as at the end of the reporting period or with respect to transactions that occurred during the reporting period. Report information with respect to transactions occurred during the reporting period on a year to date basis, rather than for the individual quarter alone.

Items on SRF 532.0 are to be reported as thousands of dollars, percentages and dates. Report percentages as a whole number to one decimal place, i.e. 10 per cent is to be reported as 10.0. Report dates as DD/MM/YYYY.

Items on SRF 532.0 are to be reported on a non look through basis or a look through basis. A look through basis is where information about the underlying investments in an investment vehicle must be reported.

These instructions specify the unit of measurement and look through basis that applies to each item.

Specific instructions  

Report large exposures only on SRF 532.0. A large exposure means an investment that represents at least one per cent of the assets of the RSE.

Terms highlighted in bold italics indicate that the definition is provided in these instructions. Additional definitions are provided at the end of these instructions.

Where the relevant organisation does not have an ABN, leave the ABN field blank e.g. where the organisation is domiciled in an overseas jurisdiction.

Directly held investments – large exposures

Item 1 collects large exposures that are directly held.

Unit of measurement: report item 1 column 2 and item 1.1 in thousands of dollars.

Look through basis: report item 1 on a non look through basis.

Item 1

Report each directly held large exposure as a separate line in item 1. Report indirectly held large exposures in item 2.

For each directly held large exposure report the name of the investment in column 1, the value of the investment in column 2, the asset class type in column 3, the asset domicile type in column 4, the asset listing type in column 5, the fixed income type in column 6, the fixed income currency type in column 7, the counterparty credit rating in column 8, the fixed income term in column 9, the mortgage type in column 10, international economy type in column 11 and the exposure type in column 12.

Item 1.1 is a derived item. Report total directly held large exposures in item 1.1 as equal to the sum of values reported in item 1 column 2.

The asset class types are: cash, fixed income, equity, property, infrastructure, commodities and ‘other’.

The asset domicile types are: Australia domicile, international domicile and ‘not applicable’. Where the asset domicile is not known, report asset domicile type as ‘not applicable’.

The asset listing types are: listed, unlisted and ‘not applicable’. Report asset listing type as ‘not applicable’ for asset class type cash or fixed income. Where the asset listing is not known, report asset listing type as ‘not applicable’.

The fixed income types are: Government debt, non Government debt, mortgage debt, credit and ‘not applicable’. Fixed income types are only applicable to the asset class type fixed income. For asset class type fixed income, where the fixed income type is not known, report fixed income type as ‘not applicable’.

The fixed income currency types are: Australian dollars, other currency and ‘not applicable’. Fixed income currency types are only applicable to the asset class type fixed income. For asset class type fixed income, where the fixed income currency is not known, report fixed income currency as ‘not applicable’.

The fixed income terms are: short term, long term and ‘not applicable’. Fixed income terms are only applicable to the asset class type fixed income. For asset class type fixed income, where the fixed income term is not known, report fixed income term as ‘not applicable’.

The mortgage types are: residential mortgage, commercial mortgage and ‘not applicable’. Mortgage types are only applicable to the fixed income type mortgage debt. For the fixed income type mortgage debt, where the mortgage type is not known, report mortgage type as ‘not applicable’.

The international economy types are: emerging markets, developed markets and ‘not applicable’. International economy types are only applicable to the asset domicile type international domicile. For the asset domicile type international domicile, where the international economy type is not known, report international economy type as ‘not applicable’.

The counterparty credit ratings are: grade 1, grade 2, grade 3, grade 4, grade 5, grade 6, grade 7 and ‘not applicable’. The counterparty credit ratings are only applicable to the asset class type fixed income. For asset class type fixed income, where the counterparty credit rating is not known, report counterparty credit rating as ‘not applicable’.

The exposure types are: ‘MySuper product if any MySuper product in the RSE are exposed to the investment; ‘defined benefit interests’ if any defined benefit interests in the RSE are exposed to the investment, ‘MySuper product and defined benefit interests’ if both MySuper product and defined benefit interests in the RSE are exposed to the investment and ‘neither’ if neither MySuper product or defined benefit interests in the RSE are exposed to the investment.

An investment is to be reported as asset class type ‘other’ for reasons including, but not limited to, (a) an RSE licensee does not have sufficient information about an investment to classify it into one or more asset classes; or (b) an investment is in a different category than the relevant combinations of: asset class type, asset domicile type, asset listing type, fixed income type, fixed income currency, fixed income term, mortgage type, international economy type and counterparty credit rating.

Exclude from asset class type ‘other’ investments in multi-asset class investment vehicles such as cash management trust, life company guaranteed, life company investment linked, listed retail trust, pooled superannuation trust, unlisted retail trust and wholesale trust. Investments in these investment vehicles must be allocated to each asset class, asset domicile, asset listing, fixed income type, fixed income currency, fixed income term, mortgage and international economy type represented in the underlying investment.

Examples of other investments include: hedge funds, mezzanine debt, convertible debt.

Examples of listed equity investments include: common shares, preference shares. Exchange traded funds (ETFs) and listed trusts are to be allocated to the asset class of the underlying asset. Include equity ETFs, and listed equity trusts in listed equity. Exclude non-equity ETFs and listed trusts such as: fixed income ETFs, commodity ETFs, listed property trusts and listed infrastructure trusts.

Examples of unlisted equity investments include: venture capital, private equity.

Examples of commodities include: precious metals, agricultural natural resources, energy, livestock, commodity ETFs, exchange traded commodities (ETCs).

Directly held

Represents investments made by the RSE in its own name. Includes: investments held by a custodian in trust for the RSE.

Indirectly held

Represents an investment made via an investment vehicle.

MySuper product

Represents a MySuper product that has been authorised by APRA under s. 29T, s. 29TA or s. 29TB of the SIS Act.

Defined benefit interests

Represents a member interest that is a defined benefit interest or a defined benefit pension. Reference: SIS Regulations, r. 1.03AA, r. 9.04E.

Indirectly held investments – large exposures

Item 2 collects indirectly-held large exposures.

Unit of measurement: report item 2.3 column 4 as a date; report item 2.1 column 10 and item 2.2 as thousands of dollars; report item 2.1 column 11 as a percentage.

Look through basis: report item 2.1 column 1 to column 4 inclusive, and, item 2.3 on a non look through basis, reporting with respect of an investment vehicle that the RSE invests in; report item 2.1 column 5 to column 10 inclusive on a look through basis, reporting on the assets underlying the investment vehicle.

Item 2

Report each indirectly held large exposure as a separate line in item 2. For each indirectly held large exposure, report by asset class in item 2.1 and by MySuper products and defined benefits in item 2.3. For each indirectly held large exposure, report the same name and ABN of the investment vehicle in item 2.1 column 1 and column 2, and in item 2.3 column 1 and column 2, to link asset class and MySuper products and defined benefits.

Where an indirectly held large exposure is invested in multiple asset class types, asset domicile types, asset listing types, fixed income types and currencies report the indirectly held large exposure over multiple lines in item 2.1 with each combination of asset class type, asset domicile type, asset listing type, fixed income type and currency relating to the investment vehicle reported on a separate line. Only one line needs to be reported per investment vehicle in item 2.3.

For each combination of asset class type, asset domicile type, asset listing type, fixed income type and fixed income currency for each indirectly held large exposure reported in item 2.1:

·      report the name of the investment vehicle in column 1 and the ABN of the investment vehicle in column 2. If the investment vehicle domicile is international domicile and thus does not have an ABN, leave column 2 blank;

·      report the investment vehicle type in column 3 and the investment vehicle domicile type in column 4;

·      report the asset class type in column 5, asset domicile type in column 6, asset listing type in column 7, fixed income type in column 8 and fixed income currency type in column 9;

·      report the value of the investment in column 10; and

·      if gearing is allowed in the investment vehicle, report the proportion of the investment value reported in column 10 that is geared in column 11.

Item 2.2 is a derived item. Report total indirectly held large exposures in item 2.2 as equal to the sum of values reported in item 2.1 column 10.

For each indirectly held large exposure reported in item 2.3:

·      report the name of the investment vehicle in column 1 and the ABN of the investment vehicle in column 2. If the investment vehicle domicile is international domicile and thus does not have an ABN, leave column 2 blank;

·      if the investment vehicle is an associate of the RSE licensee or RSE, report ‘yes’ in column 3; otherwise, report ‘no’;

·      report the review date of the investment vehicle in column 4;  and

·      report the exposure type in column 5.

The investment vehicle types are: cash management trust, life company guaranteed, life company investment linked, listed retail trust, pooled superannuation trust, unlisted retail trust, wholesale trust and ‘other indirect investment’.

The asset class types are: cash, fixed income, equity, property, infrastructure, commodities and ‘other’.

The asset domicile types are: Australia domicile, international domicile and ‘not applicable’. Where the domicile is not known, report asset domicile type as ‘not applicable’.

The asset listing types are: listed, unlisted and ‘not applicable’. Report asset listing type as ‘not applicable’ for asset class type cash or fixed income. Where the asset listing is not known, report asset listing type as ‘not applicable’.

The fixed income types are: Government debt, non Government debt, mortgage debt, credit and ‘not applicable’. The fixed income types are only applicable to investments of asset class type fixed income. For asset class type fixed income, where the fixed income type is not known, report fixed income type as ‘not applicable’.

The fixed income currency types are: Australian dollars, other currency and ‘not applicable’. The fixed income currency types are only applicable to investments of asset class type fixed income. For asset class type fixed income, where the fixed income currency is not known, report fixed income currency as ‘not applicable’.

The exposure types are: ‘MySuper product if any MySuper product in the RSE are exposed to the investment; ‘defined benefit interests’ if any defined benefit interests in the RSE are exposed to the investment, ‘MySuper product and defined benefit interests’ if both MySuper product and defined benefit interests in the RSE are exposed to the investment and ‘neither’ if neither MySuper product or defined benefit interests in the RSE are exposed to the investment.

ABN

Represents a unique public identifier issued to an entity registered in the Australian Business Register to be used in dealings with government. A company registered under the Corporations Act 2001 or a business entity carrying on an enterprise in Australia is entitled to an ABN.

Associate

Represents an associate within the meaning given in s. 12 of the SIS Act.

Review date

Represents the date on which the RSE licensee last reviewed the investment vehicle. Reference: Prudential Standard SPS 530 Investment Governance.

Gearing

Represents borrowings for the purpose of boosting the return on capital and income via additional investment. Includes: derivative securities which achieve a gearing effect.

Indirectly held investments - exposure concentrations in underlying investments

Item 3 collects indirectly held investments via investment vehicles that are associates of the RSE licensee or RSE and the underlying investment vehicles of those investments. Information is only collected where the underlying investment represents at least one per cent of the total assets of the RSE. This is referred to as ‘look-through’ reporting on investment vehicles; an illustration of this is provided below.

Item 3 column 1 to column 3 inclusive collects the indirectly-held investment. Item 3 column 4 to column 9 inclusive collects the underlying investment.

An underlying investment vehicle may invest in another investment vehicle. Where this investment in another investment vehicle represents at least one per cent of the total assets of the RSE, treat the underlying investment as an indirectly-held investment and report the information on a new line in item 3.

Look-through reporting does not apply to non-associated investment vehicles. Therefore, repeat this reporting process for each indirectly-held investment that is with an associated investment vehicle, which has an underlying investment that represents at least one per cent of the total assets of the RSE.

Illustration of look-through

The diagram below provides an illustration of look-through to assist with reporting in item 3. The diagram portrays the RSE investing in Investment Vehicle A which is an associate of the RSE licensee/RSE.  Investment Vehicle A invests some or all of the RSE’s investment with Investment Vehicle B which is also an associate of the RSE licensee/RSE. Investment Vehicle B invests some or all of the RSE’s investment with Investment Vehicle C which is not an associate of the RSE licensee/RSE. The investment in Investment Vehicle A, Investment Vehicle B and Investment Vehicle C must be reported in item 3. Further look-through reporting regarding the investments underlying Investment Vehicle C is not required.

Organization Chart

Unit of measurement: report item 3 column 3 as a whole number and item 3 column 7 as thousands of dollars.

Look through basis: item 3 is reported on a look through basis.

Item 3

Where the investment by Investment Vehicle A (A) in Investment Vehicle B (B) represents at least one per cent of the total assets of the RSE, report A as the indirectly-held investment in item 3 and B as the underlying investment in item 3, in the same row.

Report the name of A in column 1, the ABN of A in column 2 and the number of interposed associates between the RSE and A in column 3.

Report the name of B in column 4, the ABN of B in column 5, the investment vehicle type of B in column 6, the value of the investment in B in column 7.

If B invests in other investment vehicles, report ‘yes’ in item 3 column 8; otherwise, report ‘no’.

If B is an associate of the RSE licensee or RSE, report ‘yes’ in item 3 column 9; otherwise, report ‘no’.

As ‘yes’ is reported in item 3 column 8 and column 9 where the investment by B in Investment Vehicle C (C) represents at least one per cent of the total assets of the RSE, also report B as the indirectly-held investment and C as the underlying investment, in a new line in item 3. In this example, C is not an associate of the RSE licensee/RSE and therefore no further information is collected.

The investment vehicle types are: cash management trust, life company guaranteed, life company investment linked, listed retail trust, pooled superannuation trust, unlisted retail trust, wholesale trust and ‘other indirect investment’.

 

 

Interposed associate

Represents an associate that has been engaged to manage some or all of the investments of the RSE that invests in other investment vehicles. Exclude: an investment vehicle that holds the RSE's investment. Reference: SIS Act, s. 12.

Large exposures by country of investment

Item 4 and item 5 collect investments by the geographic location in which the investment is held.

Directly held investments - large exposures by country of investment

Item 4 collects information about directly held investments by country of the investment.

Where the aggregate value of directly held investments in a country is less than one per cent of the RSE’s total assets, the country does not need to be reported. Appendix 2 contains a list of countries with information on the extra jurisdictions/territories covered by each country name.

Unit of measurement: report item 4 column 2 as thousands of dollars.

Look through basis: item 4 is reported on a non look through basis.

Item 4

For each country of investment where the aggregate value of directly held investments in that country is greater than or equal to one per cent of the total assets of the RSE, report the country in column 1 and aggregate value of directly held investments in column 2. 

Report each country on a separate line. See Appendix 2 for a listing of countries.

Indirectly held investments - large exposures by international exposure

Item 5 collects information about indirectly held investments according to the domicile of the investment vehicle, information regarding whether the investment vehicle is an associate of the RSE licensee or RSE and the region of international exposure.

The unit of measurement for item 5 is the combination of: domicile of investment vehicle, associate, international region exposure and country.

Where the aggregate value of indirectly held investments with associates of the RSE licensee or RSE, by domicile of investment vehicle, international region exposure and country is less than one per cent of the total assets of the RSE, the investment does not need to be reported.

Where the aggregate value of indirectly held investments with investment vehicles that are not associates of the RSE licensee or RSE, by domicile of investment vehicle, international region exposure and country is less than one per cent of the total assets of the RSE, the investment does not need to be reported.

Example: two non-associated investment vehicles domiciled in the U.S.A. that invest in Asia with an aggregate value of 6 per cent of the RSE’s total assets, are to be aggregated and reported in a single line.

Example: two associated investment vehicles domiciled in Brazil that invest in the Americas with an aggregate value of 0.75 per cent of the RSE’s total assets do not need to be reported.

Unit of measurement: report item 5 column 5 as thousands of dollars.

Look through basis: report item 5 column 1 and column 2 on a non look through basis; report item 5 column 3, column 4 and column 5 on a look through basis.

Item 5

Report each combination of domicile of investment vehicle, associate, international region exposure and country that has an aggregate value greater than or equal to one per cent of the total assets of the RSE on a separate line in item 5.

Report the domicile of the investment vehicle in column 1.

If the investment vehicle is an associate of the RSE licensee or RSE, report ‘yes’; otherwise, report ‘no’ in column 2.

Report the international region exposure in column 3, the country in column 4 and the aggregate value of the investment in column 5.

The international region exposures are: global, Americas region, Asia region, Europe region¸ Mid East / Africa region, Oceania region and individual country.

Report ‘not applicable’ for country in column 4 if the international region exposure reported in column 3 is global, Americas region, Asia region, Europe region¸ Mid East / Africa region or Oceania region.

Domicile of investment vehicle

Represents the location of the investment vehicle. The criterion for location is whether an investment vehicle is permanently located, physically and/or by way of law or registration, inside or outside a country's borders. 

Large exposures in unlisted investments

Item 6 collects additional information about each equity security holding in an unlisted corporation, unlisted private trust, limited partnership or joint venture that represents more than one per cent of total assets.

Reporting basis: report column 6 as at the date the investment was made; report column 8 with respect to transactions that occurred during the reporting period; report column 5, column 7, column 9 and column 10 as at the end of the reporting period. If investments have been made at multiple dates, report column 6 as the sum across all of the dates investments were made.

Unit of measurement: report column 5 as a percentage; report column 6 to column 9 inclusive as thousands of dollars.

Item 6

Report each directly held equity investment in an unlisted corporation, unlisted private trust, limited partnership or joint venture that represents more than one per cent of total assets of the RSE as a separate line in item 6.

For each investment, report the unlisted entity type in column 1, the name of the entity in column 2 and the ABN of the entity in column 3.

If the entity is an associate of the RSE licensee or RSE, report ‘yes’ in column 4; otherwise, report ‘no’.

Report the ownership percentage in the entity in column 5, the initial cost of the investment in column 6, the value of the investment in column 7, distributions from the entity that are recognised as income by the RSE in column 8, the value of commitments outstanding in column 9 and the exposure type in column 10.

The unlisted entity types are: unlisted corporation, unlisted private trust, limited partnership and joint venture.

The exposure types are: ‘MySuper product if any MySuper product in the RSE are exposed to the investment; ‘defined benefit interests’ if any defined benefit interests in the RSE are exposed to the investment, ‘MySuper product and defined benefit interests’ if both MySuper product and defined benefit interests in the RSE are exposed to the investment and ‘neither’ if neither MySuper product or defined benefit interests in the RSE are exposed to the investment.

Ownership percentage

Represents the portion of ownership held by the RSE in the investment.

Initial cost

Represents the amount at which the investment was first made and recognised at market value. Reference: Australian Accounting Standards.

Distributions

Represents gross revenue in the form of distributions received in lieu of the investment. Reference: Australian Accounting Standards.

Commitments outstanding

Represents the amount of legally enforceable contractual commitments to invest additional funds in the asset at any time in the future.

Glossary of additional terms

Asset class type

Cash

Represents cash on hand and demand deposits, as well as cash equivalents. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Reference: Australian Accounting Standards.

Fixed income

Represents a loan, placement or debt security. Loans are financial assets that are created when a creditor lends funds directly to a debtor, and are evidenced by documents that are non negotiable. Placements are liabilities of entities not described as authorised deposit-taking institutions, e.g. State treasuries. Debt securities are securities which represent borrowed funds which must be repaid by the issuer with defined terms including the notional amount (amount borrowed), an identifiable return and maturity/renewal date. Includes: short and long-term debt securities.

Equity

Represents an ownership interest in a business, trust or partnership. Includes: common shares, preference shares and units. Excludes: units in property trusts, units in infrastructure trusts.

Property

Represents an investment in real estate where the earnings and capital value are dependent on cash flows generated by the property through sale or rental income.

Infrastructure

Represents the basic physical systems of a country, state or region including transportation, communication, utilities, and public institutions.

Commodities

Represents natural resources that are either grown or extracted from the ground and are often used as inputs in the production of other goods or services.

Domicile type

Australian domicile

Represents investments issued in Australia.

International domicile

Represents investments issued outside Australia.

Asset listing type

Listed

Represents financial instrument that is traded through an Australian or international stock exchange.

Unlisted

Represents financial instrument that is not traded through an Australian or international stock exchange.

Fixed income type

Government debt

Represents a debt security issued by a federal, state, territory or local governments, or corporations owned or controlled by a federal, state, territory or local government.

 

Non Government debt

Represents a debt security issued by a corporation that is not owned or controlled by a federal, state, territory or local government.

Mortgage debt

Represents a debt security where specific mortgage assets are provided as collateral.

Credit

Represents a loan, a placement or a debt security where specific non-mortgage assets are provided as collateral.

Fixed income term

Short term

Represents a security with an original term to maturity of one year or less.

Long term

Represents a security with an original term to maturity of more than one year.

Fixed income currency type

Australian dollars

Represents an investment denominated in Australian dollars.

Other currency

Represents an investment denominated in a currency other than Australian dollars.

Mortgage type

Residential mortgage

Represents loans for the construction or purchase of residential dwellings.

Commercial mortgage

Represents loans for the construction or purchase of commercial buildings or other business real estate.

International economy type

Emerging markets

Represents developing countries and transition economies as defined by the United Nations Conference on Trade and Development under the economic groupings classification.

Developed markets

Represents developed economies as defined by the United Nations conference on Trade and Development under the economic groupings classification. Excludes: Australia.

Investment vehicles

Cash management trust

Represents a unit trust which is governed by a trust deed which generally confines its investments (as authorised by the trust deed) to financial securities available through the short-term money market. Cash management trusts issue units in the trust that are redeemable by the unit holder on demand.

Life company guaranteed

Represents the provision of benefits calculated by reference to units, the value of which are guaranteed by the contract not to be reduced and provides for the account to be increased, within the meaning given in s. 14.2 of the Life Insurance Act 1995.

Life company investment linked

Represents the provision of benefits calculated by reference to a running account under the contract and provides for the account to be increased, within the meaning given in s. 14.2 of the Life Insurance Act 1995.

Listed retail trust

Represents a collective investment vehicle with units on issue listed on an Australian or an international stock exchange which provides exposure to a diversified portfolio of investments and can be accessed by retail clients, at low entry levels, as defined in the Corporations Act 2001.

Pooled superannuation trust

Represents a type of collective investment trust where an investment manager invests the assets of superannuation funds, approved deposit funds and other pooled superannuation trusts. Excludes: unitised investments with life companies where the original or primary investment is an insurance or investment policy.

Unlisted retail trust

Represents a collective investment vehicle that is not listed on an Australian or international stock exchange, provides exposure to a diversified portfolio of investments and can be accessed by retail clients, at low entry levels, as defined in the Corporations Act 2001.

Wholesale trust

Represents a collective investment vehicle that provides exposure to a diversified portfolio of investments and can be accessed by wholesale clients only, at high entry levels, as defined in the Corporations Act 2001.

Counterparty credit ratings

The counterparty grades are used in classifying the credit rating of debt investments. An RSE licensee must directly request credit grades from the counterparty or investment manager, and must not rely on consumer rating agencies which rate collective investments.

Where an RSE has investments with multiple ratings from two or more rating agencies, the RSE licensee must consistently apply the lowest rating of a single agency whenever the individual ratings conflict.

The counterparty credit ratings used in these instructions are generally consistent with long term rating/debt securities. Where an RSE invests in counterparties/securities that have only been issued with a short term counterparty credit rating, the RSE licensee must use the most closely matched counterparty credit rating.

Grade 1

Represents a rating of Standard & Poor's AAA, Moody's Aaa, AM Best aaa, Fitch AAA

Grade 2

Represents a rating of Standard & Poor's AA+, AA, AA-; Moody's Aa1, Aa2, Aa3; AM Best aa+, aa, aa-; Fitch AA+, AA, AA

Grade 3

Represents a rating of Standard & Poor's A+, A, A-; Moody's A1, A2, A3; AM Best a+, a, a-; Fitch A+, A, A-

Grade 4

Represents a rating of Standard & Poor's BBB+, BBB, BBB-; Moody's Baa1, Baa2, Baa3; AM Best bbb+, bbb, bbb-; Fitch BBB+, BBB, BBB-

Grade 5

Represents a rating of Standard & Poors BB+, BB, BB-; Moodys Ba1, Ba2, Ba3; AM Best bb+, bb, bb-; Fitch BB+, BB, BB-

Grade 6

Represents a rating of Standard & Poor's B+, B, B-; Moody’s B1, B2, B3; AM Best b+, b, b-; Fitch B+, B, B-

Grade 7

Represents a rating of Standard & Poor's CCC or below; Moody’s Caa or below; AM Best b or below; Fitch CCC or below; unrated.

International exposure type

Global

Represents countries located in more than one geographic region.

Americas region

Represents countries located in North America, Central America and South America.

Asia region

Represents countries located in Asia.

Europe region

Represents countries located in Europe. Includes: Eastern Europe.

Mid East / Africa region

Represents countries located in the Middle East and Africa.

Oceania region

Represents countries located in the Pacific Ocean region. Excludes: Asia region and Americas region.

 


Unlisted entity type

Unlisted corporation

Represents a corporation whose equity shares are not quoted on a stock exchange.

Unlisted private trust

Represents a collective investment vehicle with units on issue which is not traded on an Australian or an international stock exchange, which is not offered to the public and where there are no more than 50 investors.

Limited partnership

Represents an association of persons, other than a company, carrying on business as partners or in receipt of income jointly, where the liability of at least one of those persons is limited, or an association of persons with legal personality to carry on activities that are carried on by a body of that kind. 

Joint venture

Represents a contractual arrangement of the RSE licensee whereby two or more parties undertake an economic activity that is subject to joint control or joint arrangement (an arrangement of which two or more parties have joint control).

Interpretation

For the purposes of these instructions:

·                defined benefit RSE means an RSE that is a defined benefit fund within the meaning given in Prudential Standard SPS 160 Defined Benefit Matters;

·                eligible rollover fund (ERF) has the meaning given in section 10(1) of the SIS Act and, in relation to the period between 1 July 2013 and 31 December 2013, includes an existing ERF within the meaning given in section 391 of the SIS Act;

·                large exposure means an investment that represents at least one per cent of the assets of the RSE; 

·                pooled superannuation trust (PST) has the meaning given in section 10(1) of the SIS Act;

·                RSE means a registrable superannuation entity as defined in section 10(1) of the SIS Act that is not a defined benefit RSE, PST, ERF, small APRA fund or single member approved deposit fund[6];

·                RSE licensee has the meaning given in section 10(1) of the SIS Act;

·                SIS Act means Superannuation Industry (Supervision) Act 1993; and

·                SIS Regulations means Superannuation Industry (Supervision) Regulations 1994.

·                underlying investment means an investment in an underlying investment vehicle; and

·                underlying investment vehicle means an investment vehicle in which the assets of an RSE are invested, where the investment is made via another investment vehicle.

 


Appendix 1: Illustrative example for completion of item 3

3.

Indirectly-held investment or multi-layer indirectly-held investment

Underlying investment

Indirectly held investment vehicle name

Indirectly held investment vehicle ABN

Interposed associates

Underlying investment vehicle name

Underlying investment vehicle ABN

Type of investment vehicle

Underlying investment value

Invests in investment vehicles?

Associate

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Vehicle 1

XXX

0

Vehicle 2A

YYY

Wholesale trust

29500

Yes

Yes

Vehicle 1

XXX

0

Vehicle 2B

ZZZ

Wholesale trust

70000

Yes

No

Vehicle 2A

YYY

1

Vehicle 3A

AAA

Listed retail trust

28500

No

Yes

 

As ‘yes’ is reported in column 8 and column 9 Vehicle 2A, Vehicle 2A must be treated as if it were itself an indirectly-held investment of the RSE. Where the underlying investments of vehicle 2A represent at least one per cent of the assets of the RSE, report this information in a new line in item 3.

As ‘no’ is reported in column 9 for Vehicle 2B, no further look-through reporting is required on 4A.

Vehicle 2C does not need to be reported because the assets are less than one per cent of the assets of the RSE.

As ‘no’ is reported in column 8 for Vehicle 3A, no further look-through reporting is required on the ‘direct investment’.

Vehicle 3B and 3C do not need to be reported because the assets are less than one per cent of the assets of the RSE.

 


Appendix 2: Country list

The following country list must be used when reporting item 4 and item 5.

If the country cannot be identified, report the relevant ‘residual’ region. If the residual region cannot be identified, report ‘unallocated’.

Country/Grouping

Code

Afghanistan

AF

Albania

AL

Algeria

DZ

Andorra

AD

Angola

AO

Argentina

AR

Armenia

AM

Aruba

AW

Australia

AU includes Christmas Islands, Cocos Islands, Norfolk Islands, Heard and McDonald Islands, Territory of Ashmore and Cartier Islands and Territory of Coral Sea Islands

Austria

AT

Azerbaijan

AZ

Bahamas

BS

Bahrain

BH

Bangladesh

BD

Barbados

BB

Belarus

BY

Belgium

BE

Belize

BZ

Benin

BJ

Bermuda

BM

Bhutan

BT

Bolivia

BO

Bosnia and Herzegovina

BA

Botswana

BW

Brazil

BR

British Overseas Territories

1W includes British Antarctic Territory, British Indian Ocean Territory, Chagos, Pitcairn Islands, South Georgia and South Sandwich Islands

Brunei

BN

Bulgaria

BG

Burkina Faso

BF

Burundi

BI

Cambodia

KH

Cameroon

CM

Canada

CA

Cape Verde

CV

Cayman Islands

KY

Central African Republic

CF

Chad

TD

Chile

CL

China

CN

Colombia

CO

Comoros Islands

KM

Congo

CG

Congo Democratic Republic

CD

Consortium Banks

1G

Costa Rica

CR

Cote d'Ivoire

CI

Croatia

HR

Cuba

CU

Cyprus

CY

Czech Republic

CZ

Denmark

DK excludes Faeroe Islands and Greenland

Djibouti

DJ

Dominica

DM

Dominican Republic

DO

Ecuador

EC

Egypt

EG

El Salvador

SV

Equatorial Guinea

GQ

Eritrea

ER

Estonia

EE

Ethiopia

ET

Faeroe Islands

FO

Falkland Islands

FK

Fiji

FJ

Finland

FI  includes Aland Islands

France

FR includes French Guiana, French Southern Territories, Guadeloupe, Martinique, Mayotte, Monaco, Reunion and St. Pierre and Miquelon

French Polynesia

PF includes Society Archipelago, Tuamotu-Gambier Islands, Marquesas, Australes Archipelago

Gabon

GA

Gambia

GM

Georgia

GE

Germany

DE

includes the European Central Bank

Ghana

GH

Gibraltar

GI

Greece

GR

Greenland

GL

Grenada

GD

Guatemala

GT

Guernsey

GG

Guinea

GN

Guinea-Bissau

GW

Guyana

GY

Haiti

HT

Honduras

HN

Hong Kong SAR

HK

Hungary

HU

Iceland

IS

India

IN

Indonesia

ID

International organisations

1C except the BIS which is included under Switzerland, and the ECB which is included under Germany

Iran

IR

Iraq

IQ

Ireland

IE

Isle of Man

IM

Israel

IL

Italy

IT

Jamaica

JM

Japan

JP

Jersey

JE

Jordan

JO

Kazakhstan

KZ

Kenya

KE

Kiribati

KIR

Kuwait

KWT

Kyrgyz Republic

KGZ

Laos

LAO

Latvia

LV

Lebanon

LB

Lesotho

LS

Liberia

LR

Libya

LY

Liechtenstein

LI

Lithuania

LT

Luxembourg

LU

Macau SAR

MO

Macedonia

MK

Madagascar

MG

Malawi

MW

Malaysia

MY includes Labuan International Offshore Financial Centre

Maldives

MV

Mali

ML

Malta

MT

Marshall Islands

MH

Mauritania

MR

Mauritius

MU

Mexico

MX

Micronesia

FM

Moldova

MD

Mongolia

MN

Montenegro

ME

Morocco

MA

Mozambique

MZ

Myanmar

MM

Namibia

NA

Nauru

NR

Nepal

NP

Netherlands

NL

Netherlands Antilles

AN  includes Bonaire, Curacao, Saba, St. Eustatius and St. Maarten

New Caledonia

NC

New Zealand

NZ includes Cook Islands, Minor Islands, Niue, Ross Dependency and Tokelau

Nicaragua

NI

Niger

NE

Nigeria

NG

North Korea

KP

Norway

NO includes Bouvet Islands, Svalbard and Jan Mayen Islands

Official Monetary Authorities

1D

Oman

OM

Pakistan

PK

Palau

PW

Palestinian Territory

PS

Panama

PA  includes Panama Canal Zone

Papua New Guinea

PG

Paraguay

PY

Peru

PE

Philippines

PH

Poland

PL

Portugal

PT includes the Azores and Madeira

Qatar

QA

Residual Africa and Middle East

2W includes Western Sahara

Residual Asia and Pacific

2O

Residual developed countries

2R

Residual Europe

2B

Residual Latin America and Caribbean

2H

Residual offshore centres

2N

Romania

RO

Russia

RU

Rwanda

RW

Samoa

WS

San Marino

SM

Sao Tome and Principe

ST

Saudi Arabia

SA

Senegal

SN

Serbia

RS

Seychelles

SC

Sierra Leone

SL

Singapore

SG

Slovakia

SK

Slovenia

SI

Solomon Islands

SB

Somalia

SO

South Africa

ZA

South Korea

KR

Spain

ES includes Balearic Islands, Canary Islands and Ceuta and Melilla

Sri Lanka

LK

St. Helena

SH includes Ascension, Gough and Tristan Da Cunha

St. Lucia

LC

St. Vincent

VC includes the Grenadines

Sudan

SD

Suriname

SR

Swaziland

SZ

Sweden

SE

Switzerland

CH includes Bank for International Settlements

Syria

SY

Taiwan, China

TW

Tajikistan

TJ

Tanzania

TZ

Thailand

TH

Timor Leste

TL

Togo

TG

Tonga

TO

Trinidad and Tobago

TT

Tunisia

TN

Turkey

TR

Turkmenistan

TM

Turks and Caicos

TC

Tuvalu

TV

Uganda

UG

Ukraine

UA

Unallocated

5M

United Arab Emirates

AE

United Kingdom

GB excludes Guernsey, Isle of Man and Jersey

United States

US includes American Samoa, Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, US Virgin Islands and Wake Islands

Uruguay

UY

US Pacific Islands

PU includes Carolines, Howland and Baker, Kingman Reef, Palmyra and Jarvis and Johnston

Uzbekistan

UZ

Vanuatu

VU

Vatican

VA

Venezuela

VE

Vietnam

VN

Wallis and Futuna

WF

West Indies UK

1Z includes Anguilla, Antigua and Barbuda, British Virgin Islands, Montserrat and St. Christopher/St. Kitts - Nevis

Yemen

YE

Zambia

ZM

Zimbabwe

ZW

 



[1]           For the purposes of this Reporting Standard, an ‘RSE licensee’s business operations’ includes all activities as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee. For the avoidance of doubt, if the RSE licensee is trustee of more than one RSE, defined benefit RSE, PST or ERF, the RSE licensee must separately provide the information required by the form for each RSE, defined benefit RSE, PST or ERF within its business operations.

[2]           For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, an RSE licensee is nonetheless required to submit the information required no later than the due date.

[3]           Refer also to Prudential Standard SPS 310 Audit and Related Matters (SPS 310).

[4]           Refer to Prudential Standard SPS 510 Governance.

[5]           For the purposes of this Reporting Standard, ‘small APRA fund’ means a superannuation entity that is a regulated superannuation fund, within the meaning of the SIS Act, which has fewer than five members and ‘single member approved deposit fund’ means a superannuation entity that is an approved deposit fund, within the meaning of the SIS Act, and has only one member.

[6]           For the purposes of these instructions, ‘small APRA fund’ means a superannuation entity that is a regulated superannuation fund, within the meaning of the SIS Act, which has fewer than five members and ‘single member approved deposit fund’ means a superannuation entity that is an approved deposit fund, within the meaning of the SIS Act, and has only one member.