Explanatory Statement
STATUTORY RULES 1984, NO. 87
ISSUED BY THE AUTHORITY OF THE TREASURER
FINANCIAL CORPORATIONS ACT 1974
FINANCIAL CORPORATIONS (STATISTICS) REGULATIONS
Section 32 of the Financial Corporations Act 1974 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. Section 11 of the Act provides for the making of regulations to require a corporation registered under the Act to furnish to the Reserve Bank and/or the Statistician, statements setting out such information relating to the business of the corporation as is provided for in the regulations.
Under the proposed regulations statistics currently collected under the Act and published in the Australian Bureau of Statistics (ABS) publication “Financial Corporations, Australia” (ABS Cat. No. 5617.0) will be replaced by a series of collections that have been tailored to the operations of corporations within each category provided in the Act ie Building Societies, Credit Co-operatives, Authorised Money Market Dealers, Money Market Corporations, Pastoral Finance Companies, Finance Companies, General Financiers, Retailers, Intra-Group Financiers, and Other financial corporations. The forms contained in the proposed regulations are designed to collect structural data (selected liabilities and assets) and financial operations data (lending commitments, borrowing facilities, and interest rates).
The collection of data under the Act will form part of a statistical package for the collection of information from financial institutions, and is a result of a review conducted by the Treasury, the Australian Bureau of Statistics and the Reserve Bank of all statistics collected from financial institutions. As a result of the rationalised collection of statistics there will be increased availability of data, reduction in burden upon respondents, and consistency of data definitions and concepts across collections.
The proposed regulations will provide for a new method of collecting statistical data and for the repeal of existing provisions. Details of the proposed regulations are as follows:
PART I - PRELIMINARY
Regulation 1 provides the short citation of the regulations.
Regulation 2 provides that Parts I, II and V and the Schedule to the Regulations are to come into operation on 1 June 1984 and the remaining provisions on 1 July 1984.
Regulation 3 provides the interpretation of the regulations.
PART II - PERIODIC STATEMENTS RELATED TO STATISTICAL PERIODS
Regulation 4 defines those corporations which will be required to submit monthly statistical returns as being all building societies, authorised money market dealers, money market corporations, pastoral finance companies, finance companies and those credit co-operatives and general financiers with assets exceeding $5 million.
Regulation 5 provides that for the purpose of section 11 of the Act, credit co-operatives and general financiers are required to inform the Reserve Bank within 30 days from the time their assets exceed $5 million.
Regulation 6 provides that corporations to which Part II applies are allowed 21 days from the end of the monthly reporting period to furnish to the Reserve Bank and the Statistician their statistical return on the form appropriate to the category in which the corporation is registered.
Regulation 7 allows corporations to take advantage of consolidation provisions available under the Act. That is, related corporations within the same category, and reporting at the same frequency, would have the option to submit a consolidated group return. This option is expected to significantly reduce the number of statistical returns submitted.
PART III - QUARTERLY STATEMENTS
Regulation 8 defines those corporations which will be required to submit quarterly statistical returns as being intra-group financiers, other financial corporations and those credit co-operatives and general financiers with assets not exceeding $5 million.
Regulation 9 provides that for the purpose of section 11 of the Act credit co-operatives and general financiers are required to inform the Reserve Bank that their assets are less than $5 million.
Regulation 10 provides that corporations to which Part III applies are allowed 21 days from the end of the quarterly reporting period to furnish to the Reserve Bank and the Statistician their statistical return on the form appropriate to the category in which the corporation is registered.
Regulation 11 allows corporations to which Part III applies the same consolidation provisions as provided in Regulation 7.
PART IV - SIX MONTHLY STATEMENTS
Regulation 12 limits the application of Part IV to retailers.
Regulation 13 provides that retailers are allowed 21 days from the end of the six-monthly reporting period to furnish to the Reserve Bank and the Statistician their statistical return.
Regulation 14 allows retailers the same consolidation provisions as provided in Regulation 7.
PART V - MISCELLANEOUS
Regulation 15 provides for the repeal of the previous regulations.
Regulation 16 notes exceptions where the previous regulations are not repealed until 1 July 1984. The purpose of these exceptions is to ensure that those corporations whose reporting frequency is being changed (eg those which are currently reporting on a monthly basis but under the new arrangements will report on a quarterly basis) will still be required to submit a return under the previous regulations for the month of June 1984 to complete the statistical series for 1983/84.
The Schedule to the regulations prescribes the forms on which the returns are to be made.
CANBERRA ACT
Overview
The Financial Corporations (Statistics) Regulations 1984 were enacted under the authority of the Financial Corporations Act 1974 to streamline and modernise the collection of financial statistics from various financial institutions in Australia. The regulations were introduced to address the need for a more efficient and less burdensome data collection process for financial corporations. They were issued by the Parliament and aim to enhance the availability and consistency of data, while reducing the reporting burden on financial institutions. The regulations replace the previous data collection methods with a new series of tailored collections designed to suit the specific operations of different categories of financial corporations, including building societies, credit co-operatives, and finance companies, among others. The reform was driven by a collaborative review conducted by the Treasury, the Australian Bureau of Statistics, and the Reserve Bank, leading to the development of a more rationalised statistical package that ensures better data quality and utility.
These regulations provide for different reporting frequencies, including monthly, quarterly, and six-monthly returns, depending on the category and size of the financial corporation, and allow for consolidation provisions to further reduce the number of returns submitted. The regulations also include provisions for the repeal of existing regulations to ensure a smooth transition to the new system, with certain exceptions to maintain data continuity during the changeover period.
Scope and Application
The Financial Corporations (Statistics) Regulations, made under Section 32 of the Financial Corporations Act 1974, detail the requirements for various financial corporations to provide statistical information to the Reserve Bank of Australia and the Statistician. The regulations apply to a range of financial entities including building societies, credit co-operatives, authorised money market dealers, money market corporations, pastoral finance companies, finance companies, general financiers, retailers, intra-group financiers, and other financial corporations. These corporations are required to submit periodic statistical returns based on their asset size and type of operations, with specific provisions for monthly, quarterly, and six-monthly reporting. Corporations with assets exceeding $5 million must submit monthly reports, while those with assets not exceeding $5 million are required to submit quarterly reports. Retailers, regardless of asset size, submit six-monthly reports. The regulations also allow for consolidation of returns by related corporations within the same category, aiming to reduce the overall reporting burden. The provisions of these regulations are designed to replace existing data collections, improving data availability, reducing respondent burden, and ensuring consistency in data definitions and concepts across collections. The regulations came into effect on 1 June 1984, with certain exceptions allowing for the continuation of previous reporting requirements until 1 July 1984 to maintain data continuity for the financial year ending June 1984.
Key Provisions
The Financial Corporations (Statistics) Regulations (No. 2) 1984 (the Regulations) are a set of rules made under the Financial Corporations Act 1974 (the Act) to mandate the collection of statistical data from financial corporations. These regulations replace existing data collection methods with a new, streamlined approach that is intended to be more efficient and effective. The main operative sections, including Regulations 4, 5, 6, 8, 9, 10, 12, 13, and 15, outline the specific requirements and obligations for financial corporations to provide statistical information to the Reserve Bank and the Statistician. The regulations distinguish between different types of financial corporations and set specific timelines for the submission of monthly, quarterly, and six-monthly statistical returns.
Under the Act, certain financial corporations are required to submit detailed statistical returns on a regular basis. Specifically, building societies, authorised money market dealers, money market corporations, pastoral finance companies, finance companies, and credit co-operatives or general financiers with assets exceeding $5 million must submit monthly returns (Regulation 4). Credit co-operatives and general financiers must notify the Reserve Bank within 30 days if their assets exceed $5 million (Regulation 5). These corporations have 21 days from the end of each reporting period to submit their returns (Regulation 6). Similarly, intra-group financiers, other financial corporations, and credit co-operatives or general financiers with assets not exceeding $5 million must submit quarterly returns (Regulation 8). These entities must also notify the Reserve Bank if their assets fall below $5 million (Regulation 9), with a 21-day window to submit their returns (Regulation 10). Retailers are required to submit six-monthly returns (Regulation 12), with a 21-day window for submission (Regulation 13). All these corporations are allowed to consolidate their returns if they are related and report at the same frequency (Regulations 7, 11, and 14).
The Regulations impose specific obligations on the financial corporations governed by them. Primarily, these corporations must submit accurate and timely statistical returns to the Reserve Bank and the Statistician. The returns must be based on the forms prescribed in the Schedule to the Regulations and must include both structural data (selected liabilities and assets) and financial operations data (lending commitments, borrowing facilities, and interest rates). The frequency of these submissions varies based on the corporation's category and size, as detailed in the Regulations. Additionally, credit co-operatives and general financiers must notify the Reserve Bank within 30 days if their assets cross the $5 million threshold in either direction. Failure to comply with these obligations can result in significant consequences.
Breaches of the requirements set out in the Regulations can lead to civil and criminal penalties. While the Regulations themselves do not explicitly state penalties, the Act under which these Regulations are made does provide for penalties. Under Section 22 of the Act, a corporation that fails to comply with a requirement to furnish a return or statement can be fined up to $1,100. For ongoing non-compliance, the fine can be up to $2,200 for each day that the failure continues. Additionally, officers or employees of a corporation found guilty of such breaches can also face personal fines. These penalties underscore the importance of compliance with the statistical reporting obligations under the Regulations.