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Reporting Standard DRS 310.1

Gross Earned Contribution Revenue and Insurance Expense

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 DMF entities to provide to APRA, on an annual basis, the Form DRF 310.1 Gross Earned Contribution Revenue and Insurance Expense.

This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with Form DRF 310.1 and the associated instructions (which are attached and form part of this reporting standard).

Purpose

1. Information collected in Form DRF 310.1 Gross Earned Contribution Revenue and Insurance Expenses (Form DRF 310.1) is used by APRA for the purpose of monitoring bodies in the finance sector.

Application and commencement

2. This reporting standard applies to all DMF entities from 1 January 2008.

Information required

3. A DMF entity must provide APRA with the information required by Form DRF 310.1, in respect of:

(a) the DMF; and

(b) in those cases where a DMF comprises a number of individual subfunds and each subfund has a distinct bank account and financial statement, each subfund

for each reporting period.

Forms and method of submission

4. 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 manually completing Form DRF 310.1 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.

5. Where the information is submitted by means of an agent to whom the DMF entity has outsourced the function of providing the information on the DMF entity’s behalf, the agent may only provide the information in accordance with paragraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under paragraph 4(a).

Note: the ‘Direct to APRA’ software and relevant forms is obtained from APRA.

Reporting periods and due dates

6. A DMF entity must provide the information required by this reporting standard in respect of each year of income of the DMF.

7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular DMF entity to require it to provide the information:

(a) more frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it necessary or desirable to obtain information more frequently); or

(b) less frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it unnecessary to require the DMF entity to provide the information as frequently as provided by paragraph 6).

8. The information must be provided to APRA:

(a) if the end of the year of income of the DMF falls between 1 January 2008 and 30 June 2008, inclusive – by no later than 30 October 2008; or

(b) if the end of the year of income of the DMF falls after 30 June 2008 –within 4 months after the end of that year of income of the reporting period to which it relates.

9. APRA may grant an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

10. The information provided under this reporting standard must be the product of processes and controls developed by the DMF entity for the internal review and authorisation of that information. It is the responsibility of the DMF entity to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Authorisation

11. If the officer of a DMF entity provides the information required by this reporting standard under paragraph 4, then:

(a) if the officer uses the ‘Direct to APRA’ application under paragraph 4(a), an officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers who have authority from the DMF entity to transmit data to APRA); and

(b) if the DMF entity provides the information on paper under paragraph 4(b), the completed form must be signed by an officer of the DMF entity who is authorised by the DMF entity to complete and lodge the form.

12. If the DMF entity provides the information required by this reporting standard through an agent under paragraph 5, then:

(a) the agent will not be required to sign or authorise the information; but

(b) the DMF entity must:

(i) obtain from the agent a paper copy of the completed form as provided to APRA (whether it was submitted electronically or in paper form); and

(ii) cause the paper copy to be signed by an officer of the DMF entity authorised by the DMF entity to sign the paper copy; and

(iii) lodge the signed paper copy with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date.

13. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:

(a) the Principal Executive Officer of the DMF entity; or

(b) the Chief Financial Officer of the DMF entity (whatever his or her official title may be); or

(c) the trustee.

Minor alterations to form and instructions

14. APRA may make minor variations to:

(a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b) the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

15. If APRA makes such a variation it must notify in writing each DMF entity that is required to report under this reporting standard.

Interpretation

16. In this reporting standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

DMF has the meaning given by section 5 of the Financial Sector (Collection of Data) Act 2001;

due date means the relevant due date under paragraph 8 or, if applicable, paragraph 9;

DMF entity is a person or body that controls a DMF, and may include any of the following:

(a) a body corporate;

(b) a partnership;

(c) an unincorporated body;

(d) an individual;

(e) for a trust that has only one trustee – the trustee;

(f) for a trust that has more than one trustee – the trustees together

officer in relation to a DMF entity means, where relevant:

(a) a director or secretary of the entity; or

(b) a person:

(i) who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the entity; or

(ii) who has the capacity to affect significantly the entity’s financial standing.

reporting period means a reporting period mentioned in paragraph 6 or, if applicable, paragraph 7;

year of income means the financial year of the DMF.

Gross Earned Contribution Revenue and Insurance Expense

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 DMF entities to provide to APRA, on an annual basis, the Form DRF 310.1 Gross Earned Contribution Revenue and Insurance Expense.

This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with Form DRF 310.1 and the associated instructions (which are attached and form part of this reporting standard).

Purpose

1. Information collected in Form DRF 310.1 Gross Earned Contribution Revenue and Insurance Expenses (Form DRF 310.1) is used by APRA for the purpose of monitoring bodies in the finance sector.

Application and commencement

2. This reporting standard applies to all DMF entities from 1 January 2008.

Information required

3. A DMF entity must provide APRA with the information required by Form DRF 310.1, in respect of:

(a) the DMF; and

(b) in those cases where a DMF comprises a number of individual subfunds and each subfund has a distinct bank account and financial statement, each subfund

for each reporting period.

Forms and method of submission

4. 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 manually completing Form DRF 310.1 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.

5. Where the information is submitted by means of an agent to whom the DMF entity has outsourced the function of providing the information on the DMF entity’s behalf, the agent may only provide the information in accordance with paragraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under paragraph 4(a).

Note: the ‘Direct to APRA’ software and relevant forms is obtained from APRA.

Reporting periods and due dates

6. A DMF entity must provide the information required by this reporting standard in respect of each year of income of the DMF.

7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular DMF entity to require it to provide the information:

(a) more frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it necessary or desirable to obtain information more frequently); or

(b) less frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it unnecessary to require the DMF entity to provide the information as frequently as provided by paragraph 6).

8. The information must be provided to APRA:

(a) if the end of the year of income of the DMF falls between 1 January 2008 and 30 June 2008, inclusive – by no later than 30 October 2008; or

(b) if the end of the year of income of the DMF falls after 30 June 2008 –within 4 months after the end of that year of income of the reporting period to which it relates.

9. APRA may grant an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

10. The information provided under this reporting standard must be the product of processes and controls developed by the DMF entity for the internal review and authorisation of that information. It is the responsibility of the DMF entity to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Authorisation

11. If the officer of a DMF entity provides the information required by this reporting standard under paragraph 4, then:

(a) if the officer uses the ‘Direct to APRA’ application under paragraph 4(a), an officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers who have authority from the DMF entity to transmit data to APRA); and

(b) if the DMF entity provides the information on paper under paragraph 4(b), the completed form must be signed by an officer of the DMF entity who is authorised by the DMF entity to complete and lodge the form.

12. If the DMF entity provides the information required by this reporting standard through an agent under paragraph 5, then:

(a) the agent will not be required to sign or authorise the information; but

(b) the DMF entity must:

(i) obtain from the agent a paper copy of the completed form as provided to APRA (whether it was submitted electronically or in paper form); and

(ii) cause the paper copy to be signed by an officer of the DMF entity authorised by the DMF entity to sign the paper copy; and

(iii) lodge the signed paper copy with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date.

13. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:

(a) the Principal Executive Officer of the DMF entity; or

(b) the Chief Financial Officer of the DMF entity (whatever his or her official title may be); or

(c) the trustee.

Minor alterations to form and instructions

14. APRA may make minor variations to:

(a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b) the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

15. If APRA makes such a variation it must notify in writing each DMF entity that is required to report under this reporting standard.

Interpretation

16. In this reporting standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

DMF has the meaning given by section 5 of the Financial Sector (Collection of Data) Act 2001;

due date means the relevant due date under paragraph 8 or, if applicable, paragraph 9;

DMF entity is a person or body that controls a DMF, and may include any of the following:

(a) a body corporate;

(b) a partnership;

(c) an unincorporated body;

(d) an individual;

(e) for a trust that has only one trustee – the trustee;

(f) for a trust that has more than one trustee – the trustees together

officer in relation to a DMF entity means, where relevant:

(a) a director or secretary of the entity; or

(b) a person:

(i) who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the entity; or

(ii) who has the capacity to affect significantly the entity’s financial standing.

reporting period means a reporting period mentioned in paragraph 6 or, if applicable, paragraph 7;

year of income means the financial year of the DMF.

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 DMF entities to provide to APRA, on an annual basis, the Form DRF 310.1 Gross Earned Contribution Revenue and Insurance Expense.

This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with Form DRF 310.1 and the associated instructions (which are attached and form part of this reporting standard).

Purpose

1. Information collected in Form DRF 310.1 Gross Earned Contribution Revenue and Insurance Expenses (Form DRF 310.1) is used by APRA for the purpose of monitoring bodies in the finance sector.

Application and commencement

2. This reporting standard applies to all DMF entities from 1 January 2008.

Information required

3. A DMF entity must provide APRA with the information required by Form DRF 310.1, in respect of:

(a) the DMF; and

(b) in those cases where a DMF comprises a number of individual subfunds and each subfund has a distinct bank account and financial statement, each subfund

for each reporting period.

Forms and method of submission

4. 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 manually completing Form DRF 310.1 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.

5. Where the information is submitted by means of an agent to whom the DMF entity has outsourced the function of providing the information on the DMF entity’s behalf, the agent may only provide the information in accordance with paragraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under paragraph 4(a).

Note: the ‘Direct to APRA’ software and relevant forms is obtained from APRA.

Reporting periods and due dates

6. A DMF entity must provide the information required by this reporting standard in respect of each year of income of the DMF.

7. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular DMF entity to require it to provide the information:

(a) more frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it necessary or desirable to obtain information more frequently); or

(b) less frequently (if, having regard to the particular circumstances of the DMF entity, APRA considers it unnecessary to require the DMF entity to provide the information as frequently as provided by paragraph 6).

8. The information must be provided to APRA:

(a) if the end of the year of income of the DMF falls between 1 January 2008 and 30 June 2008, inclusive – by no later than 30 October 2008; or

(b) if the end of the year of income of the DMF falls after 30 June 2008 –within 4 months after the end of that year of income of the reporting period to which it relates.

9. APRA may grant an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

10. The information provided under this reporting standard must be the product of processes and controls developed by the DMF entity for the internal review and authorisation of that information. It is the responsibility of the DMF entity to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Authorisation

11. If the officer of a DMF entity provides the information required by this reporting standard under paragraph 4, then:

(a) if the officer uses the ‘Direct to APRA’ application under paragraph 4(a), an officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers who have authority from the DMF entity to transmit data to APRA); and

(b) if the DMF entity provides the information on paper under paragraph 4(b), the completed form must be signed by an officer of the DMF entity who is authorised by the DMF entity to complete and lodge the form.

12. If the DMF entity provides the information required by this reporting standard through an agent under paragraph 5, then:

(a) the agent will not be required to sign or authorise the information; but

(b) the DMF entity must:

(i) obtain from the agent a paper copy of the completed form as provided to APRA (whether it was submitted electronically or in paper form); and

(ii) cause the paper copy to be signed by an officer of the DMF entity authorised by the DMF entity to sign the paper copy; and

(iii) lodge the signed paper copy with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date.

13. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:

(a) the Principal Executive Officer of the DMF entity; or

(b) the Chief Financial Officer of the DMF entity (whatever his or her official title may be); or

(c) the trustee.

Minor alterations to form and instructions

14. APRA may make minor variations to:

(a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b) the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

15. If APRA makes such a variation it must notify in writing each DMF entity that is required to report under this reporting standard.

Interpretation

16. In this reporting standard:

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

DMF has the meaning given by section 5 of the Financial Sector (Collection of Data) Act 2001;

due date means the relevant due date under paragraph 8 or, if applicable, paragraph 9;

DMF entity is a person or body that controls a DMF, and may include any of the following:

(a) a body corporate;

(b) a partnership;

(c) an unincorporated body;

(d) an individual;

(e) for a trust that has only one trustee – the trustee;

(f) for a trust that has more than one trustee – the trustees together

officer in relation to a DMF entity means, where relevant:

(a) a director or secretary of the entity; or

(b) a person:

(i) who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the entity; or

(ii) who has the capacity to affect significantly the entity’s financial standing.

reporting period means a reporting period mentioned in paragraph 6 or, if applicable, paragraph 7;

year of income means the financial year of the DMF.

Reporting Form DRF 310.1

Gross Earned Contribution Revenue and Insurance Expense

Instruction Guide

Introduction

This form requires Discretionary Mutual Funds (DMFs) to disclose information about its gross earned contribution revenue and insurance expense by class of business for each state or territory of Australia and international, which supports the amounts reported in DRF 310.0 Statement of Financial Performance (DRF 310.0). Report only discretionary business revenue.

Level of reporting

For the purposes of the instructions below the term DMF includes reporting at the legal entity or trust or subfund level. The same level of reporting must be used throughout this form.

DMFs will generally need to submit data at the legal entity or trust level. Some DMFs, however, operate with multiple subfunds and in those cases where the DMF has separate sub fund bank accounts and sub fund financial statements, this reporting form will need to be submitted for each sub fund. For example, if an entity has 2 subfunds: subfund A and subfund B. Subfund A and also subfund B will need to complete this reporting form.

Reporting obligations

The DMF is required to report information relating to a financial year in the forms. For financial years ending on or between 1 January 2008 and 30 June 2008 DMFs must lodge this form at the latest by 30 October 2008. For financial years ending after 30 June 2008 DMFs must lodge their reporting forms at the latest by 4 months after the DMF financial year end.

Audit requirements

The reporting form does not need to be audited. However the data should be based on the DMF’s financial statements and must be subject to the same processes and controls that cover the review and authorisation of that accounting data. It is the responsibility of the board or trustee or senior management of the DMF to ensure that the information lodged with APRA is accurate and complete.

Method of submission

Forms will be submitted electronically to APRA using ‘Direct to APRA’ (D2A) software unless alternative arrangements are made with APRA.

Basis of preparation

Accounting basis of preparation

Important: Report all items using the same recognition and measurement basis that is used in your financial statements. The instructions below are specific to entities that are reporting and complying with all applicable Australian Accounting Standards. In those instances where an entity does not comply with a AASB standard specifically identified below, it should report on the basis used in its financial statements.

The total contribution revenue and total insurance expense reported in this form must equal the corresponding items reported in DRF 310.0.

Unit of measurement

This form is to be presented in Australian dollars (AUD), rounded to thousands of dollars, with no decimal places. Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.

Specific instructions

1. Class of business

Please refer to Appendix 1 for more information about the classes of business.

2-10. Gross earned contribution revenue - by State/Territory/International and class of business

Report amounts of gross earned contribution revenue for the following: NSW (2), VIC (3), QLD (4), SA (5), WA (6), TAS (7), ACT (8), NT (9) and International (10). The total for all classes of business will be calculated for each column.

11. Total - by class of business

‘Total’ by class of business discloses the total gross earned contribution revenue (items 2 to 10) according to class of business.

The grand total of ‘Gross earned contribution revenue’ (sum of all states and all classes) should be equal to the line item ‘Gross earned contribution revenue’ reported in DRF 310.0.

These amounts are automatically calculated by the form.

12. Insurance expense

‘Insurance expense’ by class of business discloses the insurance expense of the DMF according to class of business.

The grand total of ‘Insurance expense’ (sum of all states and all classes) should be equal to the line item ‘Outwards insurance expense’ reported in DRF 310.0.

13. Contributions received on a cashflow basis

This is the amount of contribution revenue actually received in cash over the financial year. It is to be reported in aggregate for total business.

Total – Gross earned contribution revenue (of which is from/with related parties):

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report the amount which is from/with the following related parties:

Related party disclosure

Related party/entity is to be interpreted in accordance with AASB 124 Related Party Disclosures.

Parent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).

Subsidiaries are to be interpreted in accordance with AASB 127.

Associates are to be interpreted in accordance with AASB 128 Investments in Associates.

Joint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures.

Parent entity

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from the parent entity.

Controlled entities/Controlled entities of the parent

For entities with parents, ‘Controlled entities/Controlled entities of the parent entity’ is to be interpreted as amounts in relation to ‘Controlled entities of the parent entity’. ‘Controlled entities’ is in relation to the reporting entity.

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from these parties.

Associates

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from Associates.

Other related entities

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from any other entity related to the DMF that are not specifically identified above.

Appendix 1: Definitions of classes of business

The classes of cover are as follows:

(I) Houseowners/Householders (H & H)

This class includes:

• Contents;

• Personal property;

• Arson; and

• Burglary.

Public liability normally attaching to these products is to be separated and included in public and product liability class of business – item (XII).

(II) Commercial motor vehicle

Motor vehicle cover (including third party property damage) other than cover covering vehicles defined below under domestic motor vehicle. It includes long and medium haul trucks, cranes and special vehicles and cover for fleets.

(III) Domestic motor vehicle

Motor vehicle cover (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial cover.

(IV) Travel

Cover against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.

(V) Fire and Industrial Special Risks (ISR)

Fire - Includes all cover normally classified as 'Fire' and includes:

• sprinkler leakage;

• subsidence;

• windstorm;

• hailstone;

• crop;

• arson; and

• loss of profits and any extraneous risk normally covered under fire cover, e.g. flood.

ISR - Business cover which typically covers:

• Material damage - physical damage to property and assets

• Money/Crime - handling of cash, and internal crime

• Theft/Burglary - external crime of all sorts

• Liability - both public (damage to third parties) and product (recall of items)

• Business interruption - this covers the loss of profits due to a variety of external reasons.

When an organisation has a turnover which is substantial (as an example over $5 million) this business is covered under Industrial Special Risks (ISR) cover. Below that value, it is typically placed under a Business Pack cover which arguably is much simpler, but typically does not offer as wide a cover The ISR cover is a base contract which has been designed to be tailored to meet the individual needs of a business and this is done by way of endorsement.

(VI) Marine

Includes marine hull (including pleasure craft), marine cargo (including sea and inland transit cover).

(VII) Aviation

Aviation (including aircraft hull and aircraft liability).

(VIII) Mortgage

Cover against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.

(IX) Consumer credit

Cover to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.

(X) Other accident

Includes the following types of cover:

• Miscellaneous accident (involving cash in transit, theft, loss of money);

• All risks (baggage, sporting equipment, guns);

• Engineering when not part of ISR or fire cover;

• Plate glass when not part of packaged cover (e.g. houseowners /householders)

• Guarantee;

• Live stock;

• Pluvius; and

• Sickness and accident (which provides stated benefits where the beneficiary is killed or suffers loss of specific parts of the body or is prevented from carrying out the beneficiaries normal occupation. In addition, regular benefits may be paid over a short period of time (typically less than 3 years), noting that continuous disability cover is considered to be life cover).

(XI) Other

All other cover not specifically mentioned elsewhere. It includes, for example:

• All guarantees (e.g. fidelity guarantee)
• Trade credit;
• Extended warranty (includes cover by a third party for a period in excess of the manufacturer's or seller’s normal warranty;
• Kidnap and ransom; and
• Contingency.

(XII) Public and product liability

Public liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the member’s business. Product liability includes cover that provides for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by fire and ISR cover.

Also will include builders warranty cover.

Includes public liability attaching to houseowners/householders cover.

(XIII) Professional indemnity (PI)

Includes Directors' and Officers' liability cover plus legal expense cover. Cover for legal expense is generally included in this type of cover.

(XI) Life and continuous disability

Includes life and continuous disability cover.

Continuous disability is cover:

(a) that is, by its terms, to be of more than 3 years' duration; and

(b) under which a benefit may be payable in the event of:

(i) the death, by accident or by some other cause stated in the cover, of the person whose life is covered; or

(ii) injury or disability as a result of accident or sickness; or

(iii) the person covered being found to have a stated condition or disease.

Instruction Guide

Introduction

This form requires Discretionary Mutual Funds (DMFs) to disclose information about its gross earned contribution revenue and insurance expense by class of business for each state or territory of Australia and international, which supports the amounts reported in DRF 310.0 Statement of Financial Performance (DRF 310.0). Report only discretionary business revenue.

Level of reporting

For the purposes of the instructions below the term DMF includes reporting at the legal entity or trust or subfund level. The same level of reporting must be used throughout this form.

DMFs will generally need to submit data at the legal entity or trust level. Some DMFs, however, operate with multiple subfunds and in those cases where the DMF has separate sub fund bank accounts and sub fund financial statements, this reporting form will need to be submitted for each sub fund. For example, if an entity has 2 subfunds: subfund A and subfund B. Subfund A and also subfund B will need to complete this reporting form.

Reporting obligations

The DMF is required to report information relating to a financial year in the forms. For financial years ending on or between 1 January 2008 and 30 June 2008 DMFs must lodge this form at the latest by 30 October 2008. For financial years ending after 30 June 2008 DMFs must lodge their reporting forms at the latest by 4 months after the DMF financial year end.

Audit requirements

The reporting form does not need to be audited. However the data should be based on the DMF’s financial statements and must be subject to the same processes and controls that cover the review and authorisation of that accounting data. It is the responsibility of the board or trustee or senior management of the DMF to ensure that the information lodged with APRA is accurate and complete.

Method of submission

Forms will be submitted electronically to APRA using ‘Direct to APRA’ (D2A) software unless alternative arrangements are made with APRA.

Basis of preparation

Accounting basis of preparation

Important: Report all items using the same recognition and measurement basis that is used in your financial statements. The instructions below are specific to entities that are reporting and complying with all applicable Australian Accounting Standards. In those instances where an entity does not comply with a AASB standard specifically identified below, it should report on the basis used in its financial statements.

The total contribution revenue and total insurance expense reported in this form must equal the corresponding items reported in DRF 310.0.

Unit of measurement

This form is to be presented in Australian dollars (AUD), rounded to thousands of dollars, with no decimal places. Amounts denominated in a currency other than Australian currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.

Specific instructions

1. Class of business

Please refer to Appendix 1 for more information about the classes of business.

2-10. Gross earned contribution revenue - by State/Territory/International and class of business

Report amounts of gross earned contribution revenue for the following: NSW (2), VIC (3), QLD (4), SA (5), WA (6), TAS (7), ACT (8), NT (9) and International (10). The total for all classes of business will be calculated for each column.

11. Total - by class of business

‘Total’ by class of business discloses the total gross earned contribution revenue (items 2 to 10) according to class of business.

The grand total of ‘Gross earned contribution revenue’ (sum of all states and all classes) should be equal to the line item ‘Gross earned contribution revenue’ reported in DRF 310.0.

These amounts are automatically calculated by the form.

12. Insurance expense

‘Insurance expense’ by class of business discloses the insurance expense of the DMF according to class of business.

The grand total of ‘Insurance expense’ (sum of all states and all classes) should be equal to the line item ‘Outwards insurance expense’ reported in DRF 310.0.

13. Contributions received on a cashflow basis

This is the amount of contribution revenue actually received in cash over the financial year. It is to be reported in aggregate for total business.

Total – Gross earned contribution revenue (of which is from/with related parties):

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report the amount which is from/with the following related parties:

Related party disclosure

Related party/entity is to be interpreted in accordance with AASB 124 Related Party Disclosures.

Parent entity is to be interpreted in accordance with AASB 127 Consolidated and Separate Financial Statements (AASB 127).

Subsidiaries are to be interpreted in accordance with AASB 127.

Associates are to be interpreted in accordance with AASB 128 Investments in Associates.

Joint ventures are to be interpreted in accordance with AASB 131 Interests in Joint Ventures.

Parent entity

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from the parent entity.

Controlled entities/Controlled entities of the parent

For entities with parents, ‘Controlled entities/Controlled entities of the parent entity’ is to be interpreted as amounts in relation to ‘Controlled entities of the parent entity’. ‘Controlled entities’ is in relation to the reporting entity.

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from these parties.

Associates

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from Associates.

Other related entities

Of the grand total ‘Gross earned contribution revenue’ (sum of all states and all classes), report amounts that are with/from any other entity related to the DMF that are not specifically identified above.

Appendix 1: Definitions of classes of business

The classes of cover are as follows:

(I) Houseowners/Householders (H & H)

This class includes:

• Contents;

• Personal property;

• Arson; and

• Burglary.

Public liability normally attaching to these products is to be separated and included in public and product liability class of business – item (XII).

(II) Commercial motor vehicle

Motor vehicle cover (including third party property damage) other than cover covering vehicles defined below under domestic motor vehicle. It includes long and medium haul trucks, cranes and special vehicles and cover for fleets.

(III) Domestic motor vehicle

Motor vehicle cover (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial cover.

(IV) Travel

Cover against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.

(V) Fire and Industrial Special Risks (ISR)

Fire - Includes all cover normally classified as 'Fire' and includes:

• sprinkler leakage;

• subsidence;

• windstorm;

• hailstone;

• crop;

• arson; and

• loss of profits and any extraneous risk normally covered under fire cover, e.g. flood.

ISR - Business cover which typically covers:

• Material damage - physical damage to property and assets

• Money/Crime - handling of cash, and internal crime

• Theft/Burglary - external crime of all sorts

• Liability - both public (damage to third parties) and product (recall of items)

• Business interruption - this covers the loss of profits due to a variety of external reasons.

When an organisation has a turnover which is substantial (as an example over $5 million) this business is covered under Industrial Special Risks (ISR) cover. Below that value, it is typically placed under a Business Pack cover which arguably is much simpler, but typically does not offer as wide a cover The ISR cover is a base contract which has been designed to be tailored to meet the individual needs of a business and this is done by way of endorsement.

(VI) Marine

Includes marine hull (including pleasure craft), marine cargo (including sea and inland transit cover).

(VII) Aviation

Aviation (including aircraft hull and aircraft liability).

(VIII) Mortgage

Cover against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.

(IX) Consumer credit

Cover to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.

(X) Other accident

Includes the following types of cover:

• Miscellaneous accident (involving cash in transit, theft, loss of money);

• All risks (baggage, sporting equipment, guns);

• Engineering when not part of ISR or fire cover;

• Plate glass when not part of packaged cover (e.g. houseowners /householders)

• Guarantee;

• Live stock;

• Pluvius; and

• Sickness and accident (which provides stated benefits where the beneficiary is killed or suffers loss of specific parts of the body or is prevented from carrying out the beneficiaries normal occupation. In addition, regular benefits may be paid over a short period of time (typically less than 3 years), noting that continuous disability cover is considered to be life cover).

(XI) Other

All other cover not specifically mentioned elsewhere. It includes, for example:

• All guarantees (e.g. fidelity guarantee)
• Trade credit;
• Extended warranty (includes cover by a third party for a period in excess of the manufacturer's or seller’s normal warranty;
• Kidnap and ransom; and
• Contingency.

(XII) Public and product liability

Public liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the member’s business. Product liability includes cover that provides for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by fire and ISR cover.

Also will include builders warranty cover.

Includes public liability attaching to houseowners/householders cover.

(XIII) Professional indemnity (PI)

Includes Directors' and Officers' liability cover plus legal expense cover. Cover for legal expense is generally included in this type of cover.

(XI) Life and continuous disability

Includes life and continuous disability cover.

Continuous disability is cover:

(a) that is, by its terms, to be of more than 3 years' duration; and

(b) under which a benefit may be payable in the event of:

(i) the death, by accident or by some other cause stated in the cover, of the person whose life is covered; or

(ii) injury or disability as a result of accident or sickness; or

(iii) the person covered being found to have a stated condition or disease.