Australian Financial Services Licence (AFSL) holders authorised to deal in general insurance are required to meet APRA reporting obligations. APRA acts as the agent for ASIC to collect information from general insurance intermediaries regarding aggregate data on all insurance contracts. AFSL holders are required to lodge a Form 701 to APRA every 6 months to provide APRA with the required information.
The Form 701 must be lodged within the required timeframe, even if the AFSL holder does not offer general insurance products and has no immediate plans to do so. In this case a nil return should be lodged.
Those who obtained the general insurance authorisation as part of operating a managed investment scheme to insure the assets of the scheme also need to ensure they lodge Form 701 and will most likely receive semi-annual emails from ASIC requesting the Form 701 be completed. In this case, the AFSL holder is not operating an intermediary business and a nil return should be lodged.
Failure to lodge the Form 701 is a breach of your AFSL requirements and is therefore reportable to ASIC as a breach. AFSL holders must ensure that they continue to meet their reporting obligations under their AFSL requirements.
APRA’s Form 701 collects data on contracts of insurance invoiced by the AFSL holder throughout the reporting period. The Form 701 must be lodged every 6 months for the following reporting periods:
• 1 January to 30 June (due before 20 July); and
• 1 July to 31 December (due before 20 January).
The Form 701 is required to be submitted within twenty (20) business days of the end of the reporting period. AFSL holders who fail to lodge the form within the required time frame will attract penalties. The Form 701 can be lodged either by paper or electronically using APRA’s Direct2APRA (D2A) system.
The collection of data by APRA is purely for information purposes and allows APRA to maintain current information on the nature of insurance business and level of insurance business being conducted by AFSL holders.
Sarah works with the Compliance Team with a particular focus on compliance and legal services. Sarah also works with the Legal Team providing ongoing assistance in drafting and reviewing documentation as well as legal research. Sarah assists clients with AFSL and ACL applications, variations and also assists in the implementation of compliance reviews. She provides ongoing compliance support in the form of compliance program implementation and reviews.