Schedule BA assets and ACC

I just wanted to double check something - the RBC factor for Schedule BA assets is 0.200, and since they are not exempt from the Asset Concentration Charge, any value from the top 10 issuers would be doubled to 0.400. This would result in Schedule BA assets potentially having a higher RBC charge than the riskiest asset (Class 06 unaffiliated = 0.300).

There is a battle card in Quiz #4 that implies 0.300 is the maximum RBC charge possible, which is why Class 06 was exempt from ACC. But if Schedule BA can receive the full ACC, it actually gets a higher charge, correct?

Comments

  • Your reasoning would be correct, but where did you get your Schedule BA asset factor. I looked in the current version of Odomirok and it looks like the factor is 0.05. Also, the largest factor is 0.150 for unaffiliated common stock, so doubling any of them wouldn't exceed 0.300. See below.

  • Ah, I see. I was basing it off the problem template in Quiz 4, which has 0.200 as the factor when calculating R2. But I see there was another forum post noting the inconsistency in the Odomirok text here: https://www.battleacts6us.ca/vanillaforum6us/discussion/130/table-87-acf-calculation#latest

    So maybe my initial point would be evidence that the correct factor was supposed to be 0.050, even though there is nothing in the errata about it.

  • edited April 2021

    I didn't even remember that forum question from before. I think I'll go ahead and change the Schedule BA RBC factor in the quiz 4 problem to 0.05. Thx!

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