Document ID: chunk:federal_register_of_legislation:F2023L00569:body:0:p5
Version: federal_register_of_legislation:F2023L00569
Segment Type: other
Provision Reference: 
Character Range: 11404–14257

Australia

The information required to be reported is in relation to assets and liabilities defined under the Act as being in Australia. Section 28 of the Act requires all Level 1 general insurers to maintain assets in Australia (excluding goodwill and other amounts excluded by Prudential Standard GPS 120 Assets in Australia (GPS 120)) of a value that equals or exceeds the total amount of the general insurer's liabilities in Australia.

This requirement is designed to ensure that the total value of assets held within the jurisdictional reach of APRA and the Australian courts is sufficient to meet a general insurer's Australian liabilities. It assists in the application of subsection 116(3) of the Act, which provides that in the winding up of a general insurer, the assets in Australia shall not be applied in the discharge of its liabilities other than its liabilities in Australia unless all the liabilities in Australia have first been discharged.

For the purposes of section 28 of the Act, a number of assets and liabilities are to be treated as assets or liabilities in Australia which would not be treated as such under the common law. Further, GPS 120 specifies certain assets, which are assets in Australia under the common law, that are not to be counted as 'assets in Australia' for the purposes of section 28 of the Act. Apart from these exceptions whether an asset or a liability is an asset or a liability in Australia will otherwise turn on its character under the common law.

GPS 120 excludes certain assets which would otherwise fall within the definition of 'assets in Australia' under section 28 of the Act but which APRA considers to have doubtful value in the event of an insurer becoming insolvent.

    5.2.           Outside Australia

The information required to be reported is in relation to assets and liabilities of the reporting insurer that are not considered as being "inside Australia" under the Act.

    5.3.           Securities transacted not settled (i.e. trade date accounting)

For the purpose of reporting under the reporting standards, include market related securities that are recorded on a trade date basis and transacted in accordance with accepted financial market settlements periods. Such securities are to be included in the respective investments reporting standards. These do not constitute forward asset purchases for the purposes of the GRS 114 series.

    5.4.           Securities listed on a recognised exchange

It will generally be appropriate to treat an exchange organisation as 'recognised' where it meets the following criteria:

     * it is subject to authorisation, licensing or other means of recognition by a government or other competent authority;

     * it has rules, issued or approved, by the government or other competent authority defining the conditions: