PRU-EPRS 1.27 PRU-EPRS 1.27 Instructional Guidelines — Form B150 — Investment Activity Schedule
Form B150 — Investment Activity is intended to capture the details of the investments held by an
Authorised Firmon its own account, i.e. on its own balance sheet at the end of the reporting period.
This form is applicable to all
Authorised Firmsirrespective of their prudential category, including Islamic Financial Institutions("IFI") and Authorised Firmsoperating a Branchin the DIFC.
The form is designed to capture information pertaining to the investments carried on an
Authorised Firm'sbalance sheet. Specifically the form captures the detailed breakdown of investments across different classes of financial instruments, the geographical and sectoral distribution of investments. The form also seeks to obtain the composition of investments in terms of currency of denomination across three main currency categories — USD, UAE Dirham and Other Currencies.
Authorised firms are required to report the investments made to deploy their capital funds, even though they are not carrying on the activity of investing as part of their main business. However, investments held by an
Authorised Firmas part of its ClientAssets should not be included in this form.
Bear in mind the following general factors while using the guidelines given below to complete the form.(a) Authorised firms are expected to determine the classification of their investments for reporting on the basis of the economic import of the investment and its risk-return profile rather than on the basis of specific nomenclature for the
Transaction/ product involved.(b) In cases where the investments are made in special-purpose vehicles or structured products, the nature and characteristics of the underlying assets or cash-flow streams should be considered while determining its sectoral and geographical classification.(c) Although the investments have to disclosed across three different currency bases, the reporting amounts will always be in US Dollars. Consequently, the value of the investments classified under UAE Dirham and Other Currencies need to be translated into US Dollars, using relevant exchange rates and reported in the respective columns.(d) The total investments in each part of the form need to be the same as in the other parts and should equal the total investments reported in form B10 — Statement of Financial Position.
Structure of the form in EPRS
B150 is a single form with three main parts. The first part involves splitting the investments across different types of instruments. The total investments will automatically be reflected in item # B150_100T. The details of investments made using
Derivativesare to be disclosed in the next part.
Subsequent parts of the form require an
Authorised Firmto classify its investments across two different dimensions — the geographical distribution of investments and the sectoral distribution. Sectoral distribution involves classifying investments in terms of the Investmentsector.
Every category of investments resulting from the classifications referred to above are required to be disclosed in three broad classes of currency of denomination — US Dollar, UAE Dirham and other currencies. The form provides three columns to report the three different currency bases for every category of investment.
Authorised Firm is required to ensure that the total investments reported in each of the three main parts are equal to each other. The total investments should also be equal to the amount of total investments reported on the applicable statement of financial position, Form B10, Form B20 or Form B90.Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]
PRU-EPRS 1.27 Instructional Guidelines1. Part I: Classification of investments by asset class: The different asset classes and the underlying asset categories are described in the title column which render them self explanatory, except for the following specific points.2. B150_1110 — Government Securities: Include debt securities with original maturity of 366 days or less, issued by sovereign governments or issuers of sovereign risk. These securities can be denominated in any currency.3. B150_1120 — Government Bonds: Include debt securities with original maturity of more than 366 days, issued by sovereign governments or issuers of sovereign risk. These securities can be denominated in any currency.4. B150_1130 — Sub-Sovereign Debt: Include debt securities issued by emirate / state / provincial governments, municipal authorities, agencies of the government which carry do not represent sovereign risk. These securities can be denominated in any currency.5. B150_1140 — Issuance by Public sector enterprises: Include debt securities issued by corporate entities which are wholly or majority owned by federal / state governments.6. B150_1150 to B150_1195: These items are self-explanatory.7. B150_1210 to B150_1230: These items in the section titled 'Hybrid debt & preferential shares' are intended to capture data on amount of investments made in all forms of hybrid debt and quasi-equity instruments. These typically include, but are not limited to, convertible bonds, preference shares etc.8. B150_1310 to B150_2500: These items in the sections titled 'Equity, Other Assets & Derivatives' are self-explanatory, except for B150_1420 — Stakes in
Special Purpose Vehicles("SPVs"). Include investments made in SPVs including but not limited to those used for cash-flow securitisations, asset securitisations, project financing, structured credit Transactionsand for ship / aircraft financing.9. B150_3100 to B150_500T: These items in the sections titled geographic distribution, sectoral distribution and currency denomination of investments are self-explanatory, except for those indicated below.10. B150_4230 — Others: Include all investments made where the Investmentsdo not lend themselves to be classified under any of the sectors listed under this section.11. B150_500T — This row titled 'Total Investments based on currency denomination' leads to a linked form. To reach the linked form, right-click on the green cell in the fourth column titled "Total" and choose "Linked Form" in the pop-up box.12. The linked form provides for addition of any currencies which the Authorised Firmwishes to use for reporting its investments. To add currencies, click the icon in the first column on the left which opens a dialogue box listing the entire universe of currencies. User will choose the currencies on which reporting is required to be done by clicking on the code numbers for the currency listed in the dialogue box. On completing the selection of all the currencies required, the user clicks OK button at the bottom of the window. This will bring the user back to the linked form where all the chosen currencies are listed. The user can then report all the investments against the selected currencies.Derived from GM5/2007 (Made 16th December 2007). [VER1/12-07]