PFN PIN 6.4 PFN PIN 6.4 General provisions relating to the completion of forms
PFN PIN 6.4 Guidance
Annual Regulatory Returns follow the cycle of the Insurer’s normal statutory reporting, under the Companies Law 2004 in the
DIFCand under equivalent legislation elsewhere. Quarterly Regulatory Returns are presented on a year to date basis at specified dates.
PFN PIN 6.4.1
Supplementary Notes must be presented on separate pages, not included on the face of the forms to which they relate. Each Supplementary Note must identify the form to which it relates.
PFN PIN 6.4.2
Returns must be presented in the English language.
PFN PIN 6.4.3
Returnmust be presented in United States currency, rounded to thousands of dollars, with no decimal place.
PFN PIN 6.4.4
Where the format of a form requires the presentation of comparative information, the comparative information shall be presented according to the following principles:(a) In the case of a form forming part of the
Annual Regulatory Return, the comparative information shall be that presented in the Annual Regulatory Returnfor the previous reporting period.(b) In the case of a form forming part of the Quarterly Regulatory Return, the comparative information shall be that presented in the Quarterly Regulatory Returnfor the corresponding quarter in the previous calendar year.(c) Comparative information shall be presented unless:(i) the Insurerdid not exist at any time during the comparative period (whether or not it was an Insurer);(ii) in the case of a Cell Returnor a Fund Return, the Cellor Long-Term Insurance Fundto which the Returnrelates did not exist at any time during the comparative period; or(iii) so far only as concerns the DIFC Business Return, in the case of an Insurerthat is not a DIFC Incorporated Insurer, the Insurerwas not at any time an Insurerduring the comparative period.(d) An Insurerthat is required to present comparative information in a Return, and that was not required to prepare a Returnin respect of the comparative period, must present comparative information that would have been presented in the Returncovering the comparative period, if the Insurerhad been required to prepare that Return.(e) Comparative information shall not be changed from the time it was first presented, unless re-presentation is necessary for the interpretation of the Return. Where comparative information is changed, the Insurermust include in the Returna Supplementary Note showing the nature of the change and the reason for it.
PFN PIN 6.4.5
Annual Regulatory Return, including the Statement by Directors, is subject to audit, except where this chapter states that a form is not subject to audit.
PFN PIN 6.4.6
Each page in a
Return, including the Statement by Directorsand any Supplementary Notes, must show:(a) the words ‘Annual Regulatory Return’ or ‘Quarterly Regulatory Return’, as applicable;(b) sufficient information to identify the form or other statement;(c) the Insurer’s Licencenumber;(d) the Insurer’s name;(e) the reporting period to which the Returnrelates;(f) whether the Returnis a Global, Cell, Fund or DIFC Business Return; and(g) where the Returnrelates to a Cellor a Long-Term Insurance Fund, sufficient information to identify the Cellor Long-Term Insurance Fundin question.
PFN PIN 6.4.7 PFN PIN 6.4.7
Where this chapter requires information to be presented for different
Classes of Businessor for different types of insurance contract (that is, direct insurance, facultative reinsurance, proportional reinsurance treaty and non-proportional reinsurance treaty), an Insurerrequired to complete the form must present the relevant information in respect of all Classes of Businessand types of contract, except under the following circumstances:(a) Where an item of numerical information in respect of a Class of Businessfor a type of insurance contract is less than two per cent of the total such numerical information in respect of all Classes of Businessfor that type of insurance contract, the Insurermay aggregate that numerical information for that Class of Businessfor that type of insurance contract with the same item of information for the Class of Businessfor that type of contract in which that item of information is the largest.(b) Where an item of numerical information in respect of a type of insurance contract for a Class of Businessis less than two per cent of the total such numerical information in respect of all types of insurance contract for that Class of Business, the Insurermay aggregate that numerical information for that type of insurance contract for that Class of Businesswith the same item of information for the type of insurance contract for that Class of Businessin which that item of information is the largest.
PFN PIN 6.4.7 Guidance
This rule establishes de minimis limits for an
Insurerin respect of detailed numerical information presented by Class of Businessor by type of insurance contract. Amounts below the de minimis limits may be aggregated together with other items of information in the same line or column of a form. Insurersare not required to apply the sub-Rules in the order that they are set out. However, Insurersshould ensure that the Returns continue to comply with both sub-Rules after applying either. It is possible that applying the second sub-Rule to be applied could affect compliance with the first.
PFN PIN 6.4.8 PFN PIN 6.4.8
Insurerarranges its affairs such that a Cellor Long-Term Insurance Fundmaintained by it pays or receives income in the form of interest, dividends, rental, recharge of management expenses or other Investmentincome, from another reporting unit of the Insurer, that income must be shown gross as an expense in the reporting unit bearing the expense, and as income in the reporting unit receiving the income. Where however the same reporting unit records the income and the expense, the two must be netted off.
PFN PIN 6.4.8 Guidance
This rule establishes accounting policy in respect of transactions between reporting
Units. Internal recharges within an Insurershould be shown as such where they are external to a reporting unit of that Insurer. However, where a reporting unit (for example, the Global Returnof an Insurerthat is not a Protected Cell Company, and that maintains one or more Long-Term InsuranceFunds) includes both 'sides' of the internal Transaction, the internal Transactionmust be eliminated by Nettingoff the income and expense.