REFERENCE - Confirmation.com

1 | 615 844 6222 REFERENCE UK form Guidance Additional Information request Further Guidance When performing UK Consolidated, UK Trade Finance or UK Derivatives and Commodities requests to banks, the following guidance details how you should prepare your request to the bank for additional information (trade finance and derivatives/commodities) and what to expect in the response. Making A request For Additional Information Auditors should be sure that they include details of the arrangement(s) they would like the bank to confirm and any relevant REFERENCE numbers associated with those arrangements. Auditors may choose to request all information that may exist for their client without providing specific details of the arrangements they have in place.

2 Note: These requests will usually take longer to process as it requires the bank to perform a search across multiple departments within the bank. What The Bank s Response Can Include Trade Finance Bank s can provide the currencies and amounts of the following: (a) Letters of Credit (b) Acceptances (c) Bills discounted with recourse to the customer or any subsidiary or related party of the customer. (d) Bonds, Guarantees, Indemnities or other undertakings given to the Bank by the customer in favour of third parties (including separately any such items in favour of any subsidiary or related party of the customer). Give details of the parties in favour of whom guarantees or undertakings have been given, whether such guarantees or undertakings are written or oral and their nature.

3 (e) Bonds, Guarantees, Indemnities or other undertakings given by you, on your customer s behalf, stating whether there is recourse to your customer and/or to its parent or any other company within the group. (f) Other contingent liabilities not already detailed. For each item the bank should state the nature and extent of any facility limits and details of period of availability of agreed facility. Derivatives and Commodities The bank can give currencies, amounts and maturity dates on a contract by contract basis of all outstanding derivative contracts including the following: 1 of 2 | 615 844 6222 REFERENCE UK form Guidance (a) Foreign exchange contracts (b) Forward rate agreements (c) Financial futures (d) Interest rate swaps (e) Option contracts (f) Bullion contracts (g) Commodity contracts (h) Swap arrangements (near and far dates) (i) Credit derivatives including collateralised debt obligations (CDOs) (j) Others (indicate their nature).

4 For each item the bank should state the nature and extent of any facility limits and details of period of availability of agreed facility. Note: The above guidance is taken from Practice Note 16 bank reports for audit purposes, issued by the Auditing Practices Board. For further information please refer to that document available from the APB and BBA websites. 2 of 2