Periodic APRA liaison with the Appointed or Group Auditor will be conducted normally under trilateral arrangements involving APRA, the insurer or insurance group and the Appointed or Group Auditor. Under GPS 310, any one of these parties may initiate meetings or discussions at any time, when considered necessary.

However, notwithstanding the trilateral relationship, in exceptional circumstances, such as that required under the statutory obligations imposed by sections 49, 49A and 49B of the Act, an insurer’s Appointed Auditor or Group Auditor and APRA may engage with each other on a bilateral basis where either party considers this to be necessary (refer paragraphs 122-131). APRA may communicate with the Appointed Auditor or Group Auditor on a bilateral basis to obtain or discuss information for whatever reason(s) it considers appropriate.,

The continual development of the trilateral arrangements assists in achieving:

1. greater clarity of expectations by APRA of the Appointed or Group Auditor;
2. more meaningful contribution to the prudential supervisory process through special purpose engagements (refer paragraphs 109-121) undertaken by the Appointed or Group Auditor in accordance with instructions from the insurer to meet the requirements of APRA; and
3. improved value added feedback to insurer management in areas such as the RMS and the REMS and systems to implement insurer strategies.