Australian Financial Services Licence (AFSL) holders authorised to deal in general insurance (general insurance intermediaries) are required by Part 7.6B of the Corporations Regulations to provide data to the Australian Prudential Regulation Authority (APRA). The reporting framework allows APRA to maintain current information on the nature and levels of insurance business being conducted by general insurance intermediaries.
APRA acts as the agent for ASIC to collect information from general insurance intermediaries regarding aggregate data on all insurance contracts placed with APRA authorised insurers, Lloyd’s underwriters or unauthorised foreign insurers (UFIs).
AFSL holders who obtained the general insurance authorisation as part of operating a managed investment scheme for the purposes of insuring the assets of the scheme also need to lodge Form 701. In this case, the AFSL holder is not operating as a general insurance intermediary and a nil return should be lodged.
General insurance intermediaries and AFSL holders are required to send a completed Form 701 to APRA on a six-monthly basis. The reporting cycles run from January to June and July to December each year. Form 701 must be lodged within 20 business days from the end of each reporting cycle, 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. The Form 701 can be lodged either by paper or electronically using APRA’s Direct2APRA (D2A) system.