Australian Prudential Regulation Authority (confidentiality) determination
No. 17 of 2012
Information provided by registered financial corporations under certain reporting standards
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Australian Prudential Regulation Authority Act 1998 (APRA Act), s 57
The purpose of the Australian Prudential Regulation Authority (confidentiality) determination No. 17 of 2012 (Determination No. 17) made on 24 September 2012 is to enable APRA to disclose certain information provided by registered financial corporations (RFCs) to APRA under the reporting standards listed in the Appendix. Releasing this information will be of use to regulators, policymakers, industry, researchers, analysts and other interested parties.
Legislative background
Subsection 56(5C) of the APRA Act provides that it is not an offence against s 56(2) of that Act to disclose information in a reporting document given to APRA under s 13 of the Financial Sector (Collection of Data) Act 2001 (Collection of Data Act) where APRA has determined, under s 57, that the document does not contain confidential information.
S 57 of the APRA Act gives APRA power to determine whether a document given under s 13 of the Collection of Data Act contains confidential information. The section provides that before doing so APRA must give relevant entities or bodies, or their representative association, a reasonable opportunity to make representations as to whether information of the kind contained in the document is confidential, and take such representations into account (the consultation undertaken is discussed below).
Information covered by the determination
Determination No. 17 provides that information given to APRA under the reporting standards listed in the Appendix (made under s 13 of the Collection of Data Act) prior to the date of Determination No. 17 is non-confidential. Determination No. 17 applies to all RFCs that have submitted data under the reporting standards listed in the Appendix.
Consultation
In accordance with s 57, APRA issued a consultation letter to selected RFCs on 4 July 2012, as well as providing a link to this consultation letter on its website. The consultation letter provided all affected entities an opportunity to make representations on the proposed determination of confidentiality. This consultation period ended on 31 July 2012.
There were eight responses received from entities during the consultation. Of these, four supported or had no objections to the proposed determination and four raised concerns with the proposed determination.
The support for the proposed determination noted the benefits of increased transparency of information. Also highlighted were the general benefits of more relevant and useful data collections.
The main opposition noted in the consultation submissions concerned the potential ability of a data user to assess a bank’s performance outside Australia and transactions between a bank and its clients.
APRA considers, after taking affected entities’ representations into account, that Determination No. 17 not only helps APRA fulfil its obligations to the Bank for International Settlements (BIS), the Reserve Bank of Australia (RBA) and the International Monetary Fund (IMF) but may also benefit regulated entities, other regulators, policymakers, the wider industry, researchers, analysts and other interested parties.
Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
The legislative instrument the subject of this explanatory statement does not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Accordingly, in APRA’s assessment, this legislative instrument is compatible with human rights.
Appendix
Determination No. 17 covers the following reporting standards:
- RRS 231.1a International Exposures: Locational (Assets) Part 1
- RRS 231.1b International Exposures: Locational (Liabilities) Part 1
- RRS 231.2 International Exposures: Locational Part 2
- RRS 231.3a International Exposures: Consolidated (Domestic Entity)
- RRS 231.3b International Exposures: Consolidated (Foreign Entity)
Overview
The Australian Prudential Regulation Authority (confidentiality) determination No. 17 of 2012 was enacted to enable the Australian Prudential Regulation Authority (APRA) to disclose certain non-confidential information provided by registered financial corporations (RFCs) under specific reporting standards. This determination was made under section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act) and aims to facilitate the release of information that is beneficial to regulators, policymakers, industry, researchers, analysts, and other interested parties. The legislative process included a consultation period where affected entities were given the opportunity to make representations on the proposed determination, resulting in eight responses, four of which raised concerns regarding the potential implications of data disclosure. APRA concluded that the determination not only assists in fulfilling international obligations but may also benefit various stakeholders. The determination covers specific reporting standards related to international exposures, and a statement of compatibility with human rights has been prepared in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Australian Prudential Regulation Authority (confidentiality) determination No. 17 of 2012 is a legislative instrument designed to facilitate the disclosure of specific information provided by registered financial corporations (RFCs) to the Australian Prudential Regulation Authority (APRA). This determination enables APRA to share certain data that is deemed non-confidential, thereby promoting transparency and aiding various stakeholders including regulators, policymakers, industry representatives, researchers, analysts, and other interested parties. The information covered by this determination is given to APRA under the reporting standards listed in the Appendix and pertains to international exposures of financial corporations, both locational and consolidated, as specified under the Financial Sector (Collection of Data) Act 2001. This determination applies to all RFCs that have submitted relevant data prior to its enactment. APRA consulted with affected entities to gather their views on the proposed determination, and after considering their submissions, concluded that the benefits of increased transparency and data utility outweighed the concerns regarding potential misuse of the information. The jurisdictional reach of this determination is aligned with the Commonwealth’s regulatory scope, and it extends to all RFCs operating within Australia, facilitating compliance with international obligations and enhancing the regulatory environment for financial institutions.
Key Provisions
The Australian Prudential Regulation Authority (confidentiality) determination No. 17 of 2012 (Determination No. 17), made under section 57 of the Australian Prudential Regulation Authority Act 1998 (APRA Act), is intended to allow APRA to disclose certain information provided by registered financial corporations (RFCs) under specific reporting standards (s 57). This disclosure is meant to be beneficial for regulators, policymakers, industry, researchers, analysts, and other interested parties. The information covered by this determination includes data on international exposures, such as locational and consolidated assets and liabilities, as detailed in the Appendix to the determination (Appendix).
The obligations imposed on RFCs by Determination No. 17 include the submission of data to APRA under the specified reporting standards (Appendix). RFCs are required to provide this information in a timely and accurate manner, ensuring that APRA has the necessary data to fulfil its regulatory functions and international obligations. The consultation process, as mandated by section 56(5C) of the APRA Act, involved providing affected entities an opportunity to make representations on the proposed determination of confidentiality, which ended on 31 July 2012.
There are no direct offences, penalties, or civil/criminal consequences stipulated in the determination itself. However, any breach of the APRA Act or the Financial Sector (Collection of Data) Act 2001 could lead to enforcement actions by APRA or legal proceedings under those acts. The APRA Act includes provisions for civil and criminal penalties for non-compliance, but these are not specifically addressed in Determination No. 17. The determination is designed to facilitate the disclosure of non-confidential information to support broader regulatory and informational objectives, without creating additional enforcement mechanisms of its own.