Financial Sector (Collection of Data) (reporting standard) determination No. 40 of 2007 Reporting standard DRS 310.4 Other information (Cth)
Financial Sector (Collection of Data) (reporting standard) determination No. 40 of 2007
Reporting standard DRS 310.4 Other Information
Financial Sector (Collection of Data) Act 2001
I, Charles Watts Littrell, a delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001), DETERMINE the Reporting Standard DRS 310.4 Other Information in the form set out in the Schedule, which applies to all discretionary mutual funds.
This instrument takes effect on the date of registration on the Federal Register of Legislative Instruments.
Dated 14 December 2007
[signed]
Charles Littrell
Executive General Manager
Policy, Research and Statistics
Interpretation
In this Determination
APRA means the Australian Prudential Regulation Authority.
discretionary mutual fund has the meaning given in the Act.
Federal Register of Legislative Instruments means the register established under section 20 of the Legislative Instruments Act 2003.
Schedule
Reporting Standard DRS 310.4 Other Information comprises the 15 pages commencing on the following page.
Reporting Standard DRS 310.4
Other Information
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 310.4 Other Information.
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with the form and the associated instructions (which are attached and form part of this reporting standard).
Purpose
Information collected in Form DRF 310.4 Other Information (Form DRF 310.4) is used by APRA for the purpose of monitoring bodies in the finance sector.
Application and commencement
This reporting standard applies to all DMF entities from 1 January 2008.
Information required
A DMF entity must provide APRA with the information required by Form DRF 310.4, 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
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 310.4 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.
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
A DMF entity must provide the information required by this reporting standard in respect of each year of income of the DMF.
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).
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.
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
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
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.
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:
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
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
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.
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
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.
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:
who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the entity; or
who has the capacity to affect significantly the entity’s financial standing;
reporting period means a period mentioned in paragraph 6 or, if applicable, paragraph 7;
year of income means the financial year of the DMF.
Reporting Form DRF 310.4
Other Information
Instruction Guide
Introduction
This form requires Discretionary Mutual Funds (DMFs) to report certain information.
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.
Definitions
Beneficiary = The party that will become eligible to receive a payment once a claim is approved.
Member = The party that pays the contribution to the DMF.
Definitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’.
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 cases where an entity does not comply with a AASB standard specifically identified below, report on the accounting basis used in your financial statements.
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
During the financial year what number and amounts of claim expense were within the DMF protection wording?
Report the number and amounts of the gross claims expense which were inside the protection wording in the appropriate columns.
During the financial year what number and amounts of claims expense were outside the DMF protection wording?
Report the number and amounts of the gross claim expense which were outside the protection wording in the appropriate columns.
The total of gross claims expense in items 1 and 2 should agree to ‘Gross claims expense’ in DRF 310.0 Statement of Financial Performance (DRF 310.0).
Number of contributing members (which is the entity/person paying the contribution as opposed to the beneficiary)?
Report the number of contributing members from which you receive gross written contribution during the financial year.
During the financial year what number and amount of gross written contribution revenue was recorded from members?
Report by category the number of members and amount of gross written contribution revenue during the financial year.
Categories of members are:
Natural persons
SME – Businesses with less than 250 employees/contractors
Large corporations - Businesses with 250 or more employees/contractors
Partnerships
Other – Any member that does not fall into one of the above categories
During the financial year what were the number of potential beneficiaries?
Report by category the number of beneficiaries (not members).
Categories of beneficiaries are:
Natural persons
SME – Businesses with less than 250 employees/contractors
Large corporations - Businesses with 250 or more employees/contractors
Partnerships
Other – Any beneficiary that does not fall into one of the above categories
Are you a member of an external dispute resolution body?
Select Yes/No.
If ‘Yes’ to the best of your knowledge how many complaints were made to these bodies over the financial year?
Report the number of complaints.
What was the audit opinion for the financial year? Enter Y/N per row. You may select Y or N more than once.
Select Yes/No against each opinion: ‘Unqualified’, ‘Subject to’, ‘Except for’, ‘Adverse’, ‘Disclaimer’ and ‘Emphasis of Matter’.
If not ‘unqualified’ above what was the reason(s) for the modification of opinion? Answer Y or N. You may select Y or N more than once.
Modification options include:
Limitation on Scope
Disagreement with those charged with Governance
Not all Australian Accounting Standards applied
Other
If ‘Other’, please detail briefly the nature of the qualification?
Explain the reason and nature of the qualification.
Is the entity a reporting entity under the Corporations Act 2001?
Select Yes/No.
Does the Audit opinion paragraph state that the financial report complies with Accounting Standards in Australia and the Corporations Regulations 2001 and other mandatory reporting requirements in Australia?
Select Yes/No.
Does the entity prepare annual financial statements that comply with:
You may select Y or N more than once
The options are:
Accrual and going concern principle
Cash Basis of Accounting
Accounting Standard AASB 1023 General Insurance contracts
Historical Cost Basis (Does not take into account changing market values)
If the entity has contingent liabilities as defined by AASB 137 Provisions, Contingent Liabilities and Contingent Assets, please provide brief details of any contingent liabilities and any estimates? If no contingent liabilities report 'None'.
Report details of contingent liabilities and estimates of amounts.
Is the information contained in the APRA forms, Statement of Financial Position and Statement of Financial Performance based on audited financial statements?
Select Yes/No.
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