Archived - Liquidity frequently asked questions
These frequently asked questions (FAQs) relate to previously released information on the interpretation of Prudential Standard APS 210 Liquidity, Prudential Practice Guide APG 210 - Liquidity and Reporting Standard ARS 210.0 Liquidity.
The current version of the liquidity FAQs can be found here.
5. Can Personal Investment Entities (PIEs) with only one or two third-party managers still be treated as retail under APG 210 paragraph 114?
APRA’s intention in APG 210 is that PIEs akin to self-managed superannuation funds may be treated as retail. A third party manager (who is not a beneficiary and family member) would preclude a PIE from receiving retail treatment for the LCR and net stable funding ratio (NSFR). This provision is intended to cover any PIE with a third party manager regardless of the role of the manager or size of the PIE.
In some cases, ADIs may not have sufficient information on PIE depositors to make such a determination. In such a situation, APRA would expect ADIs to use a reasonable dollar threshold, such as $2 million . PIE’s with deposits below $2 million* could be treated as retail whereas APRA would expect PIEs with deposits above $2 million to be treated as wholesale.
* $2 million matches the maximum SME size which may be considered retail under APS 210 Attachment A paragraph 46(b).