Document ID: chunk:federal_register_of_legislation:F2023L00301:body:0:p16
Version: federal_register_of_legislation:F2023L00301
Segment Type: other
Provision Reference: 
Character Range: 44348–47383

which relate to assets backing insurance liabilities.

      3.4.4.             Other management fees

This is the value, for the relevant period, of fee expense of the reporting insurer that does not relate to the management of the entity's investment portfolios.

      3.4.5.             Fees for:

           3.4.5.1.           Audit related services

    This is the value of fees for all external audit services provided to the reporting insurer.

           3.4.5.2.           Non-audit related services provided by audit firm

    This is the value of non-audit related service fees provided by audit firms during the relevant period in accordance with Australian Accounting Standards.

      3.4.6.             Consulting fees

This is the value, for the duration of the relevant period, of consultancy fees classified as operating expenses in accordance with Australian Accounting Standards.

      3.4.7.             Actuarial fees

This is the value, for the relevant period, of any fees paid/payable by the reporting insurer that relate to the provision of actuarial services as determined in accordance with Australian Accounting Standards.

      3.4.8.             Directors fees

This is the value of the remuneration paid or payable to a working or non-working director.

      3.4.9.             Bad & doubtful debts

This includes the amount representing increments to a provision for doubtful debts / impairment as well as bad debts written off directly against the profit and loss (i.e. where no provision has been created). This can be recorded in relation to receivables and loans and advances.

      3.4.10.         Other

This is a balancing item and is the value of any other operating expenses not otherwise specifically reported under Item 3.3.

This is automatically calculated by the form.

     3.5.               Total operating expenses

This is the value, for the duration of the relevant period, of operating expenses.

It is automatically calculated as the sum of Items 3.1, 3.2, 3.3 and 3.4.

  4.     Underwriting expenses and Acquisition costs

Report the items in the sections below by the direct or reinsurance classes of business in accordance with Attachment B of Prudential Standard GPS 001 Definitions (GPS 001).

For the purpose of calculating the Insurance Risk Charge in respect of the 'Other' class of business as per GPS 001 for direct business, the Appointed Actuary is required to determine the most appropriate category (i.e. category A, B or C) in Table 1 of Attachment A of Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge (GPS 115) that this business falls within. The choice must be based on the underlying risk characteristics of the business being written. The amounts reported in the Other direct - category A, Other direct - category B and Other direct - category C line items are to follow this basis.

For reinsurance business, the classes of business in Table 2 of Attachment A of GPS 115 are to be aggregated by the Category