PRU-EPRS 1.27 Instructional Guidelines — Form B150 — Investment Activity Schedule

Purpose

Form B150 — Investment Activity is intended to capture the details of the investments held by an Authorised Firm on its own account, i.e. on its own balance sheet at the end of the reporting period.

Applicability

This form is applicable to all Authorised Firms irrespective of their prudential category, including Islamic Financial Institutions ("IFI") and Authorised Firms operating a Branch in the DIFC.

Content

The form is designed to capture information pertaining to the investments carried on an Authorised Firm's balance 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 Firm as part of its Client Assets 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 Derivatives are to be disclosed in the next part.

Subsequent parts of the form require an Authorised Firm to 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 Investment sector.

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]
[Amended] [VER2/04-13]