Financial Sector (Collection of Data) exemption No. 1 of 2008
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001 (the Act), subsection 16(1)
Under subsection 16(1) of the Act, APRA may, by legislative instrument, exempt a financial sector entity from the requirement to comply with all the requirements or specified requirements contained in applicable reporting standards.
Lionheart Insurance Pty Ltd ABN 74 065 438 815 (Lionheart) is a “financial sector entity” as defined by subsection 5(2) of the Act. Financial Sector (Collection of Data) exemption No. 1 of 2008 (the instrument) exempts Lionheart from the requirements contained in the reporting standards relating to quarterly returns specified in the Schedule.
1. Background
Lionheart is a Perth-based general insurer authorised to carry on insurance business in Australia under subsection 12(1) of the Insurance Act 1973. Lionheart is in run-off and is restricted by APRA from writing new or renewal insurance business.
Lionheart was not re-authorised as part of the General Insurance Reform Act 2001 implementation and as a consequence has been in run-off since 1 July 2002. The last of Lionheart’s policies expired as of 30 June 2007.
2. Purpose of the instrument
The purpose of the instrument is to exempt Lionheart from the requirements relating to quarterly reporting in the following reporting standards:
- GRS 110.0 (2007) Minimum Capital Requirement
- GRS 120.0 (2007) Determination of Capital Base
- GRS 130.0 (2007) Off Balance Sheet Business - Credit Substitutes Provided and Capital Charge
- GRS 130.1 (2007) Off Balance Sheet Business - Liquidity Support Facilities Obtained
- GRS 130.2 (2007) Off Balance Sheet Business - Charges Granted and Risk Charge
- GRS 130.3 (2007) Off Balance Sheet Business - Credit Support Received
- GRS 140.0 (2007) Investments - Direct Interest Rate Holdings and Risk Charge
- GRS 140.1 (2007) Investments - Direct Equity Holdings and Risk Charge
- GRS 140.2 (2007) Investments - Direct Property Holdings and Risk Charge
- GRS 140.3 (2007) Investments - Loans and Advances and Risk Charge
- GRS 140.4 (2007)Investments - Assets Indirectly Held by Insurer and Risk Charge
- GRS 150.0 (2007) Asset Concentration and Risk Charge
- GRS 160.0 (2007) Derivative Activity and Risk Charge
- GRS 170.0 (2007) Concentration Risk Charge
- GRS 210.0 (2007) Outstanding Claims Provision - Insurance Risk Charge
- GRS 210.1 (2007) Premium Liabilities - Insurance Risk Charge
- GRS 300.0 (2007) Statement of Financial Position
- GRS 310.0 (2007) Statement of Financial Performance
- GRS 310.1 (2007) Premium Revenue and Reinsurance Expense
- GRS 310.2 (2007) Claims Expense and Reinsurance Recoveries
- GRS 310.3 (2007) Investment and Operating Income and Expense
3. Limitations
The exemption will operate until 31 January 2009, whereupon APRA may reconsider the matter. The matter does not effect annual reporting by Lionheart to APRA.
4. Consultation
APRA has been in consultation with Lionheart in relation to this issue.