Which of the following is NOT listed as a non-invested asset that receives an R3 charge?

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Multiple Choice

Which of the following is NOT listed as a non-invested asset that receives an R3 charge?

R3 charges target non-invested assets that carry credit or liquidity risk—things where a counterparty might not pay or the timing of cash inflows is uncertain. That’s why assets like investment income due and accrued and amounts receivable relating to uninsured plans are included: they represent amounts that should come in but aren’t yet realized, so there’s a risk the cash won’t materialize exactly as expected. Federal income tax recoverable fits the same idea as a receivable from a government authority; it’s a near-term cash inflow that could be impaired, so it’s also subject to the R3 charge. Deferred tax assets, however, are different. They aren’t cash or near-cash recoveries from a counterparty. They arise from timing differences and tax carryforwards that reduce future tax payments, not from a current claim against a party that could default. Because they don’t represent an immediacy of realizable cash that carries that typical credit or liquidity risk, they are not listed for an R3 charge.

R3 charges target non-invested assets that carry credit or liquidity risk—things where a counterparty might not pay or the timing of cash inflows is uncertain. That’s why assets like investment income due and accrued and amounts receivable relating to uninsured plans are included: they represent amounts that should come in but aren’t yet realized, so there’s a risk the cash won’t materialize exactly as expected. Federal income tax recoverable fits the same idea as a receivable from a government authority; it’s a near-term cash inflow that could be impaired, so it’s also subject to the R3 charge.

Deferred tax assets, however, are different. They aren’t cash or near-cash recoveries from a counterparty. They arise from timing differences and tax carryforwards that reduce future tax payments, not from a current claim against a party that could default. Because they don’t represent an immediacy of realizable cash that carries that typical credit or liquidity risk, they are not listed for an R3 charge.

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