Sources of ProfitSources of Profit

Sources of Profit

Objective of this reporting standard

This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001. It requires all registered life insurance companies to report to APRA, in general, on an annual basis in relation to sources of profit.

This reporting standard outlines the overall requirements for the provision of relevant information to APRA. It should be read in conjunction with Form LRF 430.0 Sources of Profit, and the associated instructions (both of which are attached and form part of this reporting standard).

Purpose

1. Information collected in Form LRF 430.0 Sources of Profit (LRF 430.0) is used by APRA for the purpose of prudential supervision, including assessing compliance with prudential standards where appropriate. It may also be used by the Reserve Bank of Australia, the Australian Bureau of Statistics and the Australian Securities and Investments Commission.

Application and commencement

2. 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) for reporting periods commencing on or after 1 October 2009.

Information required

3. A life company must provide APRA with the information required by Form LRF 430.0 for each reporting period.

Note: The instructions for Form LRF 430.0 explain in more detail the information that is required.

4. The information required to be provided to APRA under this reporting standard is not intended to form part of the financial statements or the annual returns, within the meaning of section 124 of the Life Insurance Act, given by the life company to APRA.

Method of submission

5. The information required by this reporting standard must be given to APRA either:

(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or

(b) by completing Form LRF 430.0 on paper and mailing the completed form to APRA

Note: The ‘Direct to APRA’ application software and paper forms may be obtained from APRA.

Reporting periods and due dates

6. Subject to paragraph 7, a life company must provide the information required by this reporting standard in audited form in respect of the financial year of the life company.

Note: The annual audited form must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Actuarial Requirements.