Financial Sector (Collection of Data) (reporting standard) determination No. 31 of 2021
Reporting Standard ARS 720.6 ABS/RBA Securities on Issue
Financial Sector (Collection of Data) Act 2001
I, Alison Bliss, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:
(a) revoke Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2019, including Reporting Standard ARS 720.6 ABS/RBA Securities on Issue made under that Determination; and
(b) determine Reporting Standard ARS 720.6 ABS/RBA Securities on Issue, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 4 of the reporting standard.
Under section 15 of the Act, I declare that the reporting standard shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on the day it is registered on the Federal Register of Legislation.
This instrument commences upon registration on the Federal Register of Legislation.
Dated: 30 July 2021
[Signed]
Alison Bliss
General Manager
Data Analytics & Insights Division
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 ARS 720.6 ABS/RBA Securities on Issue comprises the document commencing on the following page.
Reporting Standard ARS 720.6
ABS/RBA Securities on Issue
Objective of this Reporting Standard
This Reporting Standard outlines the requirements for the provision of information to APRA relating to an authorised deposit-taking institution’s or registered financial corporation’s securities on issue.
It includes Reporting Form ARF 720.6 ABS/RBA Securities on Issue and the associated specific instructions.
Authority
- This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
2. Information collected by Reporting Form ARF 720.6 ABS/RBA Securities on Issue (ARF 720.6) is used by the ABS and RBA for various purposes, including the compilation of Australia’s National Accounts. This information may also be used by APRA for prudential and publication purposes.
3. This Reporting Standard is an Economic and Financial Statistics (EFS) Reporting Standard for the purposes of Reporting Standard ARS 701.0 ABS/RBA Definitions for the EFS Collection (ARS 701.0).
Application and commencement
4. This Reporting Standard applies to an authorised deposit-taking institution (ADI) or registered financial corporation (RFC) as set out in the table below, where ‘total assets’ are measured by the value reported in item 13 (column 1) on Reporting Form ARF 720.0A ABS/RBA Statement of Financial Position (Standard) (ARF 720.0A).
Class of financial institution | Applicable |
ADI Reporting Category A | No |
ADI Reporting Category B | Yes |
RFCs | Yes if total assets ≥ $500m |
5. APRA may from time to time determine that a threshold, or a higher threshold than that specified in paragraph 4 of this Reporting Standard, will apply to a particular ADI or RFC. If APRA does so it will notify the ADI or RFC concerned in writing.
6. This Reporting Standard applies for reporting periods ending on or after 30 September 2021.
Information required
7. An ADI or RFC to which this Reporting Standard applies must provide APRA with the information required by this Reporting Standard for each reporting period on a domestic books consolidation.
Method of submission
8. The information required by this Reporting Standard must be given to APRA in electronic format, using the ‘Direct to APRA’ application or by a method (i.e. a web-based solution) 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
9. The information required by this Reporting Standard must be provided by an ADI or RFC to which this Reporting Standard applies under paragraphs 4 or 5:
(a) in respect of each calendar month by an ADI; and
(b) in respect of each quarter ended 31 March, 30 June, 30 September and 31 December by an RFC.
10. The information required by this Reporting Standard must be provided to APRA within:
(a) 10 business days after the end of the reporting period to which the information relates for ADIs; and
(b) 28 calendar days after the end of the reporting period to which the information relates for RFCs.[1]
11. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI or RFC, to require it to provide the information required by this Reporting Standard more frequently, or less frequently, having regard to:
(a) the particular circumstances of the ADI or RFC; and
(b) the extent to which the information is required for the purposes of the ABS or RBA.
12. APRA may grant an ADI or RFC an extension of a due date, in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.
Quality control
13. All information provided by an ADI or RFC under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the external auditor of the ADI or RFC as set out in Prudential Standard APS 310 Audit and Related Matters for ADIs or Reporting Standard RRS 710.0 ABS/RBA Audit Requirements for Registered Financial Corporations for RFCs. Relevant standards and guidance statements issued by the Auditing and Assurance Standards Board provide information on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if required by the external auditor to enable the external auditor to form an opinion on the accuracy and reliability of the information provided by an ADI or RFC under this Reporting Standard.
14. All information provided by an ADI or RFC under this Reporting Standard must be subject to systems, processes and controls developed by the ADI or RFC for the internal review and authorisation of that information. These systems, processes and controls are to assure the completeness and reliability of the information provided.
Authorisation
15. When an officer or agent of an ADI or RFC submits information under this Reporting Standard and uses the D2A application, or other method notified by APRA, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate or other digital identity credential acceptable to APRA.
Interpretation
16. Terms that are defined in ARS 701.0 appear in bold and italics in this Reporting Standard.
17. In this Reporting Standard:
due date means the last day of the 10 business days or 28 calendar days provided for in paragraph 10 or, if applicable, the date on a notice of extension given under paragraph 12.
reporting period means a month of a year or a quarter ended 31 March, 30 June, 30 September or 31 December as provided for in paragraph 9 or, if applicable, the date on a notice given under paragraph 11.
18. Unless the contrary intention appears, any reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force or existing from time to time.
Reporting Form ARF 720.6
ABS/RBA Securities on Issue
Instructions
These instructions assist completion of Reporting Form ARF 720.6 ABS/RBA Securities on Issue (ARF 720.6). ARF 720.6 collects information securities issued by ADIs and registered financial corporations (RFCs).
Information reported in ARF 720.6 is required primarily for purposes of the ABS and the RBA. Items on ARF 720.6 are required for various purposes, including the compilation of Australia’s National Accounts. Information reported in ARF 720.6 may also be used by APRA for prudential and publication purposes.
Reporting level
ARF 720.6 must be completed for each ADI and RFC to which this Reporting Standard applies under paragraphs 4 or 5.
Reporting basis and unit of measurement
These instructions specify the reporting basis and unit of measurement that applies to each item.
Items on ARF 720.6 must be reported as at the end of the reporting period.
For reporting purposes, unless specified otherwise, enter data as a positive number.
Place of issuance
References to "issued in Australia" are references to the domicile of the instruments used to raise funds in the domestic market. These instruments can be denominated in either AUD or some foreign currency such as USD.
References to "issued overseas" are references to the domicile of the instruments used to raise funds in countries other than Australia. These instruments can be denominated in either AUD or some foreign currency such as USD.
The domicile of the security issued is distinct from the domicile of the security issuer or holder.
Values
Closing balances should be reported at market prices effective at the reference date. Where denominated in foreign currency, convert market values in foreign currency to AUD at the spot rate effective as at the reference date. This valuation approach for securities on the ARF 720.6 may differ from the Australian Accounting Standards and Reporting Form ARF 720.0A ABS/RBA Financial Position (Standard) (ARF 720.0A) depending on the classification of these instruments in your institution’s statutory accounts.
Report items on ARF 720.6 as whole dollars.
Standard Business Reporting (SBR)
Report items on ARF 720.6 with accounting type of credit (liabilities/equity). The accounting type (i.e. credit or debit) applies to all monetary items and represents the natural accounting treatment of the item collected.
Specific instructions
Terms highlighted in bold italics are defined in ARS 701.0.
All derived fields in the form are shaded in grey and are explained in words as a mathematical expression in these instructions.
Examples included under ‘Include’ and ‘Exclude’ must not be taken as an exhaustive list of items to be included or excluded.
- Total short-term debt securities excluding hybrids
Item 1 collects information on the value of short-term debt securities excluding hybrids issued by the ADI or RFC.
Short-term debt securities excluding hybrids are all debt securities excluding hybrids issued by the ADI or RFC with an original maturity of less than or equal to than 12 months.
Exclude:
- hybrid securities treated as liabilities. Report these under item 3; and
- non-negotiable certificates of deposit.
Column 1 | Report the market value of securities denominated in AUD. |
Column 2 | Report the market value of securities denominated in foreign currency. |
Item 1 | Report short-term debt securities excluding hybrids issued. Item 1 is a derived item. Report the value of total short-term debt securities excluding hybrids issued in item 1 as the sum of item 1.1 and item 1.2. |
Item 1.1 | Report short-term debt securities excluding hybrids issued in Australia. |
Item 1.1.1 | Of the amount reported in item 1.1, report the value that is bills of exchange. |
Item 1.1.2 | Of the amount reported in item 1.1, report the value that is negotiable certificates of deposit. |
Item 1.2 | Report short-term debt securities excluding hybrids issued overseas. |
Item 1.2.1 | Of the amount reported in item 1.2, report the value that is bills of exchange. |
Item 1.2.2 | Of the amount reported in item 1.2, report the value that is negotiable certificates of deposit. |
2. Total long-term debt securities excluding hybrids
Item 2 collects information on the value of long-term debt securities excluding hybrids issued by the ADI or RFC.
Long-term debt securities excluding hybrids are all debt securities excluding hybrids issued by the ADI or RFC with an original maturity of greater than 12 months.
Exclude:
- hybrid securities treated as liabilities. Report these under item 3; and
- non-negotiable certificates of deposit.
Column 1 | Report the market value of securities denominated in AUD. |
Column 2 | Of the amount reported in column 1, report the value that has a residual maturity of 12 months or less. |
Column 3 | Report the market value of securities denominated in foreign currency. |
Column 4 | Of the amount reported in column 3, report the value that has a residual maturity of 12 months or less. |
Item 2 | Report long-term debt securities excluding hybrids issued. Item 2 is a derived item. Report the value of total long-term debt securities excluding hybrids issued in item 2 as the sum of item 2.1 and item 2.2. |
Item 2.1 | Report long-term debt securities excluding hybrids issued in Australia. |
Item 2.1.1 | Of the amount reported in item 2.1, report the value that is covered bonds. |
Item 2.1.2 | Of the amount reported in item 2.1, report the value that is negotiable certificates of deposit. |
Item 2.2 | Report long-term debt securities excluding hybrids issued overseas. |
Item 2.2.1 | Of the amount reported in item 2.2, report the value that is covered bonds. |
Item 2.2.2 | Of the amount reported in item 2.2, report the value that is negotiable certificates of deposit. |
3. Total hybrid securities treated as liabilities
Item 3 collects information on the value of hybrid securities treated as liabilities under Australian Accounting Standards (i.e. hybrid securities classified as debt securities) issued by the ADI or RFC.
Column 1 | Report the market value of securities denominated in AUD. |
Column 2 | Of the amount reported in column 1, report the value that has a residual maturity of 12 months or less. |
Column 3 | Report the market value of securities denominated in foreign currency. |
Column 4 | Of the amount reported in column 3, report the value that has a residual maturity of 12 months or less. |
Item 3 | Report hybrid securities treated as liabilities issued. |
4. Total ASX-listed equity securities
Item 4 collects information on the value of equity securities issued by the ADI or RFC that are listed on the Australia Stock Exchange (ASX).
Exclude hybrid securities treated as liabilities under Australian Accounting Standards (i.e. hybrid securities classified as debt securities). Report these under item 3.
Column 1 | Report the market value. |
Item 4 | Report equity securities issued that are listed on the Australian Stock Exchange (ASX). |
Item 4.1 | Of the amount reported in item 4, report the value of preference shares. |