Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1)

Administered by Department of the Treasury

Legislation au F2012L01219 Regulations Not in force Legislative Instrument

Legislation content

Explanatory Statement

Select Legislative Instrument 2012 No. 113

Issued by the Authority of the Minister for Financial Services and Superannuation

Australian Prudential Regulatory Authority Act 1998

Australian Prudential Regulation Authority Regulation 2012 (No. 1)

Section 60 of the Australian Prudential Regulation Authority Act 1998 (the Act) provides that the Governor-General may make regulations prescribing matters which are required or permitted by the Act to be prescribed, or which are necessary or convenient to be prescribed in order to carry out or give effect to the Act.  

Subsection 56(5)(a) of the Act allows APRA to disclose protected information in the course of its prudential supervision to a financial sector supervisory agency or a prescribed agency (including foreign agencies) specified in the Australian Prudential Regulation Authority Regulations 1998 (the Regulations). Protected information is information which APRA has obtained in relation to a prudential regulation framework law, relating to a financial sector entity, a related body corporate or a customer of certain classes of financial institutions.

Australia and APRA are members of a number of international agencies that have responsibilities for supervision and management of international financial system health and stability. These agencies include the Bank for International Settlements, the Basel Committee on Banking Supervision, the Financial Stability Board, the International Monetary Fund, and the World Bank Group.  APRA is required to provide these agencies with data and information to assist their research, analysis and policy development. This contributes to international cooperation in the supervision and financial stability of the global financial system. 

 

APRA can currently disclose protected information to each of these agencies by making an instrument under subsection 56(5)(b) of the Act each time it provides information. The proposed Regulation will improve the efficiency of APRA sharing information with the agencies by prescribing each of these agencies for the purposes of subsection 56(5)(a) of the Act.  This removes the additional requirement and harmonises APRA’s powers to share information with these agencies.  Details of the Regulation are set out in Attachment.

Treasury considers that consultation on the proposed Regulation is not necessary, as the proposed Regulation is of a minor or machinery nature.  They do not alter the substance of APRA’s powers to disclose protection information to the international agencies, but rather the mechanism by which that information is shared.  The Office of Best Practice Regulation has agreed with this assessment and advised that a Regulation Impact Statement is not required.  

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulation commences on the day after it is registered.  

 

 

Attachment

Details of the proposed Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1)

 

Section 1 – Name of Regulation

 

This section specifies the name of the Regulation as the Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1)

 

Section 2 – Commencement

 

This section provides that the Regulation commence on the day after they are registered. 

 

Section 3 – Amendment of Australian Prudential Regulation Authority

Regulations 1998

 

This section provides that Schedule 1 amends the Australian Prudential Regulation Authority Regulations 1998.

 

Schedule 1 – Amendments

 

Items 1 and 2 insert the Bank for International Settlements, the Basel Committee on Banking Supervision, the Financial Stability Board, the International Monetary Fund, and the World Bank Group into the list of prescribed agencies at Regulation 5 of the current Regulations.  This will allow APRA to share information with the international agencies under subsection 56(5)(a) of the Act, rather than under 56(5)(b) of the Act.

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Australian Prudential Regulatory Authority Act 1998

Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1)

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

Subsection 56(5)(a) of the Australian Prudential Regulatory Authority Act 1998 (the Act) allows APRA to disclose protected information in the course of its prudential supervision to a financial sector supervisory agency or a prescribed agency (including foreign agencies) specified in the Australian Prudential Regulation Authority Regulations 1998. Protected information is information which APRA has obtained in relation to a prudential regulation framework law, relating to a financial sector entity, a related body corporate or a customer of certain classes of financial institutions.

Australia and APRA are members of a number of international agencies that have responsibilities for supervision and management of international financial system health and stability. These agencies include the Bank for International Settlements, the Basel Committee on Banking Supervision, the Financial Stability Board, the International Monetary Fund, and the World Bank Group.  APRA is required to provide these agencies with data and information to assist their research, analysis and policy development. This contributes to international cooperation in the supervision and financial stability of the global financial system. 

 

APRA can currently disclose protected information to each of these agencies by making an instrument under subsection 56(5)(b) of the Act each time it provides information. The proposed Regulation will improve the efficiency of APRA sharing information with the agencies by prescribing each of these agencies for the purposes of subsection 56(5)(a) of the Act.  This removes the additional requirement and harmonises APRA’s powers to share information with these agencies. 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1) was introduced to enhance the efficiency of the Australian Prudential Regulation Authority (APRA) in sharing protected information with specified international agencies. Enacted under the Australian Prudential Regulation Authority Act 1998, this regulation was authorised by the Parliament of Australia and aims to streamline the process of information sharing with key international financial oversight bodies. By prescribing these agencies in the Australian Prudential Regulation Authority Regulations 1998, the regulation allows APRA to share protected information more efficiently, without the need for a separate instrument each time, thereby harmonising its powers and aligning with international cooperation efforts for global financial stability.

Scope and Application

The Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1) amends the Australian Prudential Regulation Authority Regulations 1998 to enhance the efficiency of the Australian Prudential Regulation Authority (APRA) in sharing information with international financial agencies. Specifically, the Regulation prescribes the Bank for International Settlements, the Basel Committee on Banking Supervision, the Financial Stability Board, the International Monetary Fund, and the World Bank Group as prescribed agencies under subsection 56(5)(a) of the Australian Prudential Regulation Authority Act 1998. This amendment allows APRA to disclose protected information to these agencies without the need for additional instruments each time information is shared, thereby streamlining the process. The Regulation is a legislative instrument under the Legislative Instruments Act 2003 and comes into effect the day after registration. This amendment does not alter the substance of APRA’s powers but rather simplifies the mechanism for sharing information with these international agencies, contributing to global financial stability.

Key Provisions

The main operative sections of this legislation are Section 1, which specifies the name of the regulation as the Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1), and Section 3, which amends the Australian Prudential Regulation Authority Regulations 1998. This amendment is made to facilitate the disclosure of protected information to international agencies, including the Bank for International Settlements, the Basel Committee on Banking Supervision, the Financial Stability Board, the International Monetary Fund, and the World Bank Group. By prescribing these agencies under subsection 56(5)(a) of the Act, the regulation aims to improve the efficiency of APRA's information-sharing processes and harmonise its powers to share information with these agencies. The Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1) imposes certain obligations on APRA. Firstly, it mandates that APRA must provide the specified international agencies with data and information to assist their research, analysis, and policy development. This obligation arises from Australia and APRA's membership in these international agencies, which have responsibilities for the supervision and management of international financial system health and stability. By fulfilling this obligation, APRA contributes to international cooperation in the supervision and financial stability of the global financial system. The regulation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach. However, it is important to note that any breach of the obligations imposed by the regulation could potentially result in legal consequences. The Australian Prudential Regulation Authority Act 1998 and the Australian Prudential Regulation Authority Regulations 1998 provide the framework for enforcement and penalties. It is advisable to consult these primary legislations to determine the specific consequences of a breach. In summary, the Australian Prudential Regulation Authority Amendment Regulation 2012 (No. 1) primarily aims to improve the efficiency of APRA's information-sharing processes with specified international agencies. It prescribes these agencies for the purposes of disclosing protected information under subsection 56(5)(a) of the Act, rather than under 56(5)(b). APRA is obligated to provide these agencies with data and information to assist their research, analysis, and policy development. While the regulation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach, any breach of the obligations imposed by the regulation could potentially result in legal consequences as outlined in the primary legislations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.