Australian Prudential Regulation Authority instrument fixing charges No. 8 of 2006: Access to the NCPD by NCPD insurers during 2004-05 and 2005-06
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Australian Prudential Regulation Authority Act 1998 s 51(1)(a) and Acts Interpretation Act 1901 s 33(3)
- Background
Australian Prudential Regulation Authority instrument fixing charges No. 1 of 2006 dated 10 February 2005[1] (the principal instrument) fixes, under paragraph 51(1)(a) of the Australian Prudential Regulation Authority Act 1998, an amount of charge payable on a voluntary basis by those general insurers who contribute data to and are entitled to receive information from the National Claims and Policies Database during each of the 2004-5 and 2005-6 financial years.
Subsequent to the registration of the principal instrument on the Federal Register of Legislative Instruments, two typographical errors were drawn to APRA’s attention by the Senate Standing Committee on Regulations and Ordinances.
Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to make, grant or issue any instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.
Purpose of the instrument
The purpose of the Australian Prudential Regulation Authority instrument fixing charges No. 8 of 2006 made on 8 August 2006 (the instrument) is to rectify the typographical errors identified by the Senate Standing Committee on Regulations and Ordinances.
Inadvertently, the principal instrument was dated “10 February 2005”. The date of the principal instrument should in fact be “10 February 2006”, being the date on which it was signed. Paragraph 1 of the Schedule of this instrument therefore omits the reference to “2005” in the principal instrument and substitutes “2006”.
In the principal instrument, the general interpretation section and the definitions in clause 7 of the Schedule contain two different definitions of “NCPD insurer”. The definition of “NCPD insurer” in clause 7 of the Schedule contains the correct definition. Paragraph 2 of the Schedule of this instrument therefore omits the definition of “NCPD insurer” in the general interpretation section and substitutes the definition of “NCPD insurer” which appears in clause 7 of the Schedule.
3. Consultation
As this instrument is of a minor and machinery nature and does not substantially alter existing arrangements, consultation was considered unnecessary.
[1] Federal Register of Legislative Instruments reference: F2006L00530
Overview
The Australian Prudential Regulation Authority instrument fixing charges No. 8 of 2006, enacted in 2006, was introduced to correct typographical errors in the preceding instrument, Australian Prudential Regulation Authority instrument fixing charges No. 1 of 2006, which had been registered on the Federal Register of Legislative Instruments. This was achieved under the authority of the Australian Prudential Regulation Authority Act 1998 and the Acts Interpretation Act 1901. The principal objective of the instrument was to ensure the accuracy of the financial year references and the definition of "NCPD insurer" within the charges structure. The Australian Prudential Regulation Authority, established by the Australian Prudential Regulation Authority Act 1998, was the enacting body responsible for the correction, reflecting its mandate to regulate and supervise the financial sector in Australia.
Scope and Application
The Australian Prudential Regulation Authority instrument fixing charges No. 8 of 2006 rectifies typographical errors in the principal instrument, which originally set out charges for general insurers contributing data to and accessing information from the National Claims and Policies Database for the 2004-05 and 2005-06 financial years. This instrument applies to those general insurers who voluntarily contribute to and access the database, known as NCPD insurers. The instrument corrects two specific errors: the date of the principal instrument, which was mistakenly recorded as 10 February 2005 instead of the actual date of signing, 10 February 2006, and a discrepancy in the definition of "NCPD insurer" between the general interpretation section and clause 7 of the Schedule, where the latter contains the correct definition. The instrument operates within the jurisdiction of the Commonwealth of Australia, as it is an instrument of the Australian Prudential Regulation Authority, and is made under the Australian Prudential Regulation Authority Act 1998. It does not exclude any entities or conduct from its application but rather ensures the accuracy of the charge-fixing instrument for the specified financial years. The instrument does not create any substantive changes to the existing financial obligations or rights of the affected insurers but serves to correct administrative inaccuracies.
Key Provisions
The main sections of the Australian Prudential Regulation Authority instrument fixing charges No. 8 of 2006 address the rectification of typographical errors identified in the earlier instrument, No. 1 of 2006. Section 1 of the instrument amends the date of the principal instrument from "10 February 2005" to "10 February 2006," ensuring accuracy in the document’s signing date. Section 2 addresses a discrepancy in the definitions of "NCPD insurer," ensuring consistency by removing the incorrect definition from the general interpretation section and substituting it with the correct definition from clause 7 of the Schedule. These changes aim to clarify and correct the previous instrument without altering the substantive requirements or obligations.
The Australian Prudential Regulation Authority (APRA) imposes certain obligations on general insurers contributing data to and accessing information from the National Claims and Policies Database (NCPD). These obligations include the payment of charges set by APRA for the 2004-05 and 2005-06 financial years. Insurers are required to ensure that the data they contribute is accurate and timely, facilitating effective oversight and analysis by APRA. Additionally, the corrected definitions in the instrument ensure that all parties involved have a clear understanding of who qualifies as an NCPD insurer, thereby enabling compliance with the legislative requirements.
There are no specific offences, penalties, or civil/criminal consequences outlined in the instrument itself for the breach of the provisions. However, the underlying legislation, the Australian Prudential Regulation Authority Act 1998, may provide for various penalties in case of non-compliance with APRA's regulatory requirements. Such penalties could include fines or other sanctions for failure to comply with data submission or reporting obligations. The exact penalties would depend on the specific provisions of the Act that are being breached.