948 NEW ZEALAND GAZETTE, No. 35 11 FEBRUARY 2005

(ii) taking the aggregate Credit Exposure as at the Balance Date to each individual Counterparty (not being
members of a Group of Closely Related Counterparties) and to each Group of Closely Related Counterparties
that meet the criteria specified in subclauses 6 (a), 6 (b), and 6 (c) respectively, and adding all the amounts in
respect of each subclause;

(iii) dividing each sum derived in accordance with subclause 7 (d) (ii) of this clause by the sum derived in
subclause 7 (d) (i) of this clause, and representing this information as a percentage.

Fifth Schedule
Securitisation, Funds Management, Other Fiduciary Activities and the Marketing and Distribution of
Insurance Products

1. The General Disclosure Statement shall contain the information required to be disclosed pursuant to clauses 3 to 5 of this
   Schedule in respect of the Banking Group.

2. The information required to be disclosed pursuant to clause 5 of this Schedule shall include comparative figures for the
   previous corresponding period.

2A. For the purposes of this Schedule, references to insurance products shall be understood to relate to insurance contracts
which constitute Insurance Business.

3. A statement of the nature of the Banking Group’s involvement in:

(a) trust, custodial, funds management, and other fiduciary activities established, marketed, and/or sponsored by a
member of the Banking Group;

(b) the origination of securitised assets, and in the marketing or servicing of securitisation schemes; and

(c) the marketing and distribution of insurance products.

4. A statement as to whether arrangements have been put in place to ensure that difficulties arising from the activities
   specified in clause 3 of this Schedule would not impact adversely on the Banking Group, and if so, the nature of those
   arrangements.

5. A statement of the amount as at the Balance Date represented by each of the activities specified in subclauses 3 (a) and
   3 (b) of this Schedule (where practicable, in the case of custodial activities), disclosed according to the nature of the activity.

Sixth Schedule
Risk Management Policies

1. In respect of the Banking Group, for each of the following categories of risk:

(a) Credit Risk, including concentrations of Credit Risk, intra-day Credit Risk, Credit Risk to Bank Counterparties and
related party Credit Risk;

(b) Currency Risk;

(c) Interest Rate Risk;

(d) Equity Risk;

(e) liquidity risk;

(f) any other Material business risk to which the Banking Group is exposed;
the General Disclosure Statement shall contain the information set out in clause 2 of this Schedule.

2. In relation to each risk identified in clause 1 of this Schedule, the General Disclosure Statement shall contain:

(a) an explanation of the nature of the risk and the activities of the Banking Group which give rise to that risk;

(b) a general description of the methods used to identify and monitor exposure to the risk, including the frequency with
which exposures are monitored; and

(c) a general description of the systems and procedures for controlling the risk, including, where applicable, whether
exposure limits are employed, any policies with respect to collateral or other security, and any policies on the use of
Financial Instruments to mitigate or hedge risks.

3. The General Disclosure Statement shall contain a statement as to the nature and frequency of any reviews conducted in
   respect of the Banking Group’s risk management systems, including a statement as to whether any such reviews were
   conducted by a party external to the Banking Group, Overseas Banking Group, Ultimate Parent Bank or Ultimate Holding
   Company.

4. The General Disclosure Statement shall contain a statement as to whether the Banking Group has an internal audit
   function and, if so, its nature, including:

(a) organisational status, including formal and administrative reporting procedures;

(b) reference to the existence of an audit committee and, if applicable, the nature and scope of that committee; and

(c) scope of the internal audit function, including type and frequency of audits.

Seventh Schedule
Exposures to Market Risk

1. (1) A Registered Bank shall disclose the amount of Aggregate Market Risk Exposures of the Banking Group in respect
   of each category of Aggregate Market Risk Exposure on the basis of:

(a) Aggregate Market Risk Exposures derived in accordance with Schedule 8 of this Order; or

(b) the Banking Group’s internal operating limits applicable to the relevant category of Aggregate Market Risk
Exposure, but only if the Aggregate Market Risk Exposure in that category has not Materially exceeded those limits
at any time during the Accounting Period. For the avoidance of doubt, where a Registered Bank discloses the
Aggregate Market Risk Exposures of the Banking Group on the basis of internal operating limits, then subclauses
1 (b), 8 (b), and 11 (b) of the Eighth Schedule also apply.

(2) The General Disclosure Statement shall state which of the above methods is used, and where the method used is
that set out in clause 1 (1) (a) of this Schedule, shall also state which of the methods described in clauses 1, 8 and 11 of the