{"id":"F2023L00316","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 27 of 2023","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-27-of-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":103989,"registerId":"commonwealth-F2023L00316-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard LRS 114.2","sectionType":"part","heading":"Reporting Standard LRS 114.2","content":"![Commonwealth Coat of Arms](image.001.png)\n\n# Reporting Standard LRS 114.2\n\n## Derivatives Activity\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA relating to a life company’s derivatives activity.\n\nIt includes Form LRF 114.2 Derivatives Activity and associated specific instructions and must be read in conjunction with the general instruction guide.\n\nAuthority\n\n1.  This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (Collection of Data Act).\n\nPurpose\n\n2. Information collected in Form LRF 114.2 Derivatives Activity (LRF 114.2) is used by APRA for the purpose of prudential supervision including assessing compliance with capital standards.\n\nApplication and commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Insurance Act). This Reporting Standard applies for reporting periods ending on or after 1 April 2023.\n\nInformation required\n\n4. A life company must provide APRA with the information required by Form LRF 114.2 for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Insurance Act. It does not constitute a reporting document for the purposes of section 124.\n\nMethod of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n(a) in electronic format using an electronic method available on APRA’s website; or\n\n(b) by a method notified by APRA prior to submission.\n\nReporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that this form will be submitted five times for a full financial year.\n\nNote 2: The annual audited form must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters (LPS 310).\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) within the time stated in Reporting Standard LRS 001 Reporting Requirements (LRS 001); or\n\n(b) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\nQuality control\n\n10. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board (AUASB) as may be amended from time to time, to the extent that they are not inconsistent with the requirements of LPS 310.\n\n11. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n12. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).\n\nAuthorisation\n\n13. When an officer of a life company provides the information required by this Reporting Standard, it will be necessary for the officer to digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n14. An officer of a life company submitting information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.\n\n# Variations\n\n15. APRA may, by written notice to the life company, vary the reporting requirements of Form LRF 114.2 in relation to that life company.\n\nInterpretation\n\n16. In this Reporting Standard (including the attachments):\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) capital standards means the prudential standards which relate to capital adequacy as defined in LPS 001;\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called;\n\nfinancial year has the meaning in the Corporations Act 2001;\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001;\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity; and\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.","sortOrder":0},{"sectionNumber":"Derivatives Activity","sectionType":"part","heading":"Derivatives Activity","content":"## Derivatives Activity\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA relating to a life company’s derivatives activity.\n\nIt includes Form LRF 114.2 Derivatives Activity and associated specific instructions and must be read in conjunction with the general instruction guide.\n\nAuthority\n\n1.  This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (Collection of Data Act).\n\nPurpose\n\n2. Information collected in Form LRF 114.2 Derivatives Activity (LRF 114.2) is used by APRA for the purpose of prudential supervision including assessing compliance with capital standards.\n\nApplication and commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Insurance Act). This Reporting Standard applies for reporting periods ending on or after 1 April 2023.\n\nInformation required\n\n4. A life company must provide APRA with the information required by Form LRF 114.2 for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Insurance Act. It does not constitute a reporting document for the purposes of section 124.\n\nMethod of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n(a) in electronic format using an electronic method available on APRA’s website; or\n\n(b) by a method notified by APRA prior to submission.\n\nReporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that this form will be submitted five times for a full financial year.\n\nNote 2: The annual audited form must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters (LPS 310).\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) within the time stated in Reporting Standard LRS 001 Reporting Requirements (LRS 001); or\n\n(b) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\nQuality control\n\n10. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board (AUASB) as may be amended from time to time, to the extent that they are not inconsistent with the requirements of LPS 310.\n\n11. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n12. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).\n\nAuthorisation\n\n13. When an officer of a life company provides the information required by this Reporting Standard, it will be necessary for the officer to digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n14. An officer of a life company submitting information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.\n\n# Variations\n\n15. APRA may, by written notice to the life company, vary the reporting requirements of Form LRF 114.2 in relation to that life company.\n\nInterpretation\n\n16. In this Reporting Standard (including the attachments):\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) capital standards means the prudential standards which relate to capital adequacy as defined in LPS 001;\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called;\n\nfinancial year has the meaning in the Corporations Act 2001;\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001;\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity; and\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.","sortOrder":1},{"sectionNumber":"Objective of this Reporting Standard","sectionType":"division","heading":"Objective of this Reporting Standard","content":"### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA relating to a life company’s derivatives activity.\n\nIt includes Form LRF 114.2 Derivatives Activity and associated specific instructions and must be read in conjunction with the general instruction guide.","sortOrder":2},{"sectionNumber":"Variations","sectionType":"part","heading":"Variations","content":"# Variations\n\n15. APRA may, by written notice to the life company, vary the reporting requirements of Form LRF 114.2 in relation to that life company.\n\nInterpretation\n\n16. In this Reporting Standard (including the attachments):\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) capital standards means the prudential standards which relate to capital adequacy as defined in LPS 001;\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called;\n\nfinancial year has the meaning in the Corporations Act 2001;\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001;\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity; and\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.","sortOrder":3}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument's baseline scope applies to all life companies registered under the Life Insurance Act and to reporting periods ending on or after 1 April 2023 (para 3). Nothing in the text indicates an expansion or narrowing of that baseline scope. APRA retains discretion to vary reporting frequency or content for particular life companies by written notice, which permits case-by-case adjustments without changing the overall scope (paras 8,15)."},"complexity_factors":["Cross-references to multiple other instruments and standards (LPS 001, LPS 310, LRS 001) that determine definitions, timing and audit interactions (paras 9,10,16).","Reporting cadence and submission types: quarterly unaudited returns and an annual audited return (five submissions per year) create recurring operational work (para 7, Note 1).","Audit and assurance requirements: auditor must review systems/processes annually or more frequently and perform at least a limited assurance engagement consistent with AUASB standards (para 10).","Use of estimates allowed for unaudited submissions but audited submissions require compliance with prudential standards — operational distinction increases preparation complexity (para 12).","Authorisation and security: digital certificate signature requirement and limitation on who may authorise submissions (Principal Executive Officer or CFO) create specific compliance controls (paras 13–14).","Regulator discretion: APRA may change reporting frequency or vary form requirements for particular life companies by written notice, adding uncertainty (paras 8,15).","Administrative requirements for method of submission and timing are prescribed or may be notified by APRA, requiring system flexibility (paras 6,9).","Drafting repetition and duplicated sections in the source text may cause interpretive friction for implementers (entire document)."],"plain_english_summary":"This Reporting Standard requires all life insurers (including friendly societies) to submit Form LRF 114.2 on derivatives activity to APRA for reporting periods ending on or after 1 April 2023. APRA uses the information for prudential supervision, including assessing compliance with capital standards.\n\nThe Standard imposes recurring compliance costs — quarterly unaudited and an annual audited return (five submissions total), auditor review and limited-assurance requirements, digital-signature and authorised-officer rules, and a power for APRA to vary frequency or content (paras 7,10,12–15). Life companies pay reporting costs; APRA determines timing and scope."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument appears to be a straightforward reporting standard made under the Financial Sector (Collection of Data) Act 2001. Its scope is limited to collecting derivatives activity data from life insurers for prudential supervision purposes, which aligns with the original intent of the enabling Act. There is no evidence of scope creep beyond standard APRA data collection functions."},"complexity_factors":["Multiple cross-references to external prudential standards (LPS 001, LPS 310, LRS 001) that are not reproduced in the instrument","Conditional logic regarding reporting frequency (standard quarterly/annual vs APRA-modified schedules)","Dual-track submission requirements (unaudited quarterly vs audited annual)","Incorporation by reference to undefined 'associated specific instructions' and a 'general instruction guide' located in another instrument","Nested quality control requirements involving auditors, boards, and senior management with reference to external professional standards (AUASB)","Exception allowing 'reasonable estimates' for unaudited submissions creates a conditional carve-out from normal actuarial standards","Digital signature and authorisation requirements add technical compliance layers"],"plain_english_summary":"Life insurers and friendly societies must report detailed derivatives trading to APRA—four unaudited quarterly submissions plus one audited annual submission—using audited systems, Board governance, and APRA‑approved digital signatures. Officers and auditors are accountable, and reasonable estimates may be used for unaudited quarters.\n\nThe data lets APRA monitor risk and capital adequacy to protect policyholders and stability. APRA can vary reporting frequency or requirements for individual firms."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-27-of-2023","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-27-of-2023/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-27-of-2023/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-27-of-2023/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-27-of-2023/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-27-of-2023/documents"}}