Financial Sector (Collection of Data) Act 2001 - Exemption (AMS Investments Pty Limited)

Administered by Department of the Treasury

Legislation au F2005L01932 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Financial Sector (Collection of Data) Act 2001

 

INSTRUMENT EXEMPTING REGISTERED ENTITYCERTAIN REGISTERED ENTITIES FROM REPORTING TO APRA

 

Instrument to which this explanatory statement relates

 

1. This explanatory statement relates to an instrument dated 6 July 2005 made under paragraph 16(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the “Act”) exempting a registered entity four financial sector entities from reporting to the Australian Prudential Regulation Authority (“APRA”) under certain reporting standards determined by APRA under section 13 of the Act.

 

2. The registered entity is AMS Investments Pty Limited ACN 076 202 849 (“AMS”).The four entities are Wesfarmers Ltd ABN 28 008 984 049 and its three wholly owned subsidiaries Wesfarmers Landmark Ltd ABN 73 008 743 217, Westralian Farmers Co-Operative Ltd ABN 42 007 507 833 and Wesfarmers Landmark (Qld) Ltd ABN 31 008 996 218 (the “Wesfarmers Group”). 

 

 

APRA’s power to collect relevant information and exempt from reporting

 

3.   APRA is the prudential regulator of the banking, general insurance, life insurance and superannuation industries.  One of APRA’s functions is to collect information under the Act that will assist with the prudential regulation of bodies within the financial sector.  APRA’s power to collect information extends to non-regulated entities which are involved in financial intermediation (called registered entities).  

 

4.   APRA has determined a number of reporting standards in relation to registered entities under section 13 of the Act.  They include the following reporting standards (the “Exempted Reporting Standards”) which are applicable to financial sector entities which, together with related entities, have total assets exceeding $500 million:

 

RRS 320.0 Statement of Financial Position (Domestic Books)

RRS320.1 Debt Securities Held

RRS 320.2 Equity Securities Held

RRS320.3 Debt Securities on Issue

RRS 320.4 Accepted and Endorsed Bills

RRS 320.5 Securities Subject to Repurchase & Resale & Stock Lending & Borrowing

RRS331.0 Selected Revenues and Expenses

RRS 332.0 Statement of Economic Activity

RRS 391.0 Commercial Finance

RRS 392.0 Housing Finance

RRS 393.0 Lease Finance

RRS 394.0 Personal Finance

RRS 231.1a International Exposures – Locational (Assets) Part 1

RRS 231.1b International Exposures – Locational (Liabilities) Part 1

RRS 231.2 International Exposures – Locational Data Part 2

RRS 231.3a International Exposures – Consolidated Data (Domestic Entity)

RRS 231.3b International Exposures – Consolidated Data (Foreign Entity)

The reporting standards relate to the financial position, revenues and expenses, debt securities, equity securities, bill acceptances and other securities held by registered entities.

 

5.   Subsection 16(1) of the Act provides that APRA may, by written instrument, exempt a financial sector entity (or class of financial sector entity) from some or all of the applicable reporting standards.  An exemption under subsection 16(1) of the Act is a disallowable instrument.

 

6. “Financial sector entity” is defined in subsection 5(2) of the Act as including registered entities.  AMS is aThe Wesfarmers Group of companies are registered entityies., which is a class of financial sector entity.  Accordingly AMSthe Group can be exempted from reporting requirements under subsection 16(1) of the Act.

 

 

Scope of the exemption

 

7. The relevant reporting standards are:The instrument of exemption exempts AMSthe four companies in the Wesfarmers Group from the Exemptedfollowing Rreporting sStandards, as they are in force from time to time.:

 

         RRFS 320.0 Statement of Financial Position

         RRSF 331.0 Selected Revenues and expenses

         RRSF 320.1 Debt Securities Held

         RRSF 320.2 Equity Securities Held

         RRSF 320.3 Debt Securities on Issue

         RRSF 320.4 Bill Acceptances

         RRSF 320.5 Securities Subject to Repurchase & Resale & Stock Lending & Borrowing

RRS 332.0 Statement of Economic Activity

 

Reasons for the exemption

 

8.   APRA provides the information collected in the Exempted Reporting Standards to the Australian Bureau of Statistics (ABS) (in accordance with subsection 56(5A) of the Australian Prudential Regulation Act 1998).

 

9. AMS is the special purpose vehicle in a securitisation arrangement involving Wizard Home Loans and various other entities in the Australian Financial Investments Group Limited group of companies.  The information which would be reportable by AMS under the Exempted Reporting Standards is already reported by AMS to the ABS through its securitisation survey.  Wesfarmers Ltd, as the parent company, has been submitting reports to APRA for the Group in compliance with the reporting standards. However, on 19 March 2003, Wesfarmers Ltd submitted to APRA that the Wesfarmers Group should be exempted asked APRA to exempt the Wesfarmers Group from the reporting requirements of the Act for the following reasons:

All funds raised by the parent company are only used for intra-group lending for working capital purposes.

Funds raised by the parent entity only represent a small portion of total liabilities.

Other loan arrangements to which Wesfarmers Ltd is a party do not impact its balance sheet exposures. Wesfarmers Ltd collects fees for arranging credit for 2 two non-related primary industry financial institutions.

The provision of finance does not involve third partiesNo company in the Wesfarmers Group provides finance to third parties.

 

 

 

10. APRA is satisfied that these assertions are correct, and agrees that AMSthe Wesfarmers Group should be granted an exemption from the Exempted Reporting Standards under paragraph 16(1)(a) of the Act in order to avoid AMS duplicating its reporting obligations. 

 

 

Consultation

 

11. The exemption is not a class instrument and does not have a direct, or substantial indirect, effect on business not does it restrict competition.  APRA has consulted with the ABS and has informed AMS of APRA’s intentions.  The instrument is relatively minor or mechanical in nature and does not substantially alter existing arrangements.  Hence, industry consultation is not considered necessary or appropriate. 

 

9.                   APRA is conscious of the objectives of the Act which, in these circumstances, is to provide for the collection of data in order to formulate monetary policy. It is generally accepted that data collected on transactions between related corporations does not assist in this purpose.

 

Effect Duration of exemption

 

121. The instrument of exemption, made by a delegate of APRA, has the effect of exempting the four registered entities in the Wesfarmers Group from the requirement to comply with all of the requirements contained in the registered entity reporting standards.The exemption remains in force indefinitely or until it is revoked.

 

Overview

The Financial Sector (Collection of Data) Act 2001 was enacted to empower the Australian Prudential Regulation Authority (APRA) to collect data that aids in the prudential regulation of the banking, insurance, and superannuation industries. This Act also extends APRA's data collection powers to registered entities involved in financial intermediation. APRA can determine reporting standards applicable to these entities, including those with total assets exceeding $500 million. The Act allows APRA to exempt certain financial sector entities, including registered entities, from some or all reporting requirements. The Act was introduced by the Parliament of Australia to address the need for comprehensive data collection to inform monetary policy and prudential regulation. In 2005, an instrument was made under the Act to exempt AMS Investments Pty Limited and the Wesfarmers Group from specific reporting standards. This exemption was granted to avoid duplication of reporting obligations, as the data required was already being reported to the Australian Bureau of Statistics through other means. APRA consulted with relevant authorities and determined that the exemption would not significantly impact business or competition.

Scope and Application

The Financial Sector (Collection of Data) Act 2001, as specified in the explanatory statement for the instrument dated 6 July 2005, pertains to the exemption of certain financial sector entities from reporting obligations to the Australian Prudential Regulation Authority (APRA). The Act applies to registered entities involved in financial intermediation, which include entities with total assets exceeding $500 million, as well as non-regulated entities that fall within the financial sector. APRA, the prudential regulator of the banking, general insurance, life insurance, and superannuation industries, has the authority to collect data under the Act to aid in the prudential regulation of these entities. The instrument exempts AMS Investments Pty Limited and the Wesfarmers Group, comprising Wesfarmers Ltd and its wholly owned subsidiaries, from specific reporting standards determined by APRA. These exemptions are intended to prevent duplication of reporting obligations as the necessary information is already provided to the Australian Bureau of Statistics through other means. The exemption does not extend to the broader business community or impact competition and is not considered a class instrument, hence no industry consultation was deemed necessary. The exemption is effective indefinitely unless revoked.

Key Provisions

The Financial Sector (Collection of Data) Act 2001 (the "Act") empowers the Australian Prudential Regulation Authority (APRA) to collect data from entities involved in financial intermediation, known as registered entities (section 13). APRA has the authority to exempt certain entities from specific reporting requirements under the Act (subsection 16(1)). This authority is exercised through instruments that exempt specified entities from certain reporting standards. One such instrument, dated 6 July 2005, exempts AMS Investments Pty Limited and the Wesfarmers Group from reporting to APRA under certain reporting standards. Entities subject to the Act are required to comply with the reporting standards set by APRA. These standards, which include details on financial positions, securities held, and various financial activities, are intended to assist APRA in its role of prudential regulation (subsection 13). The exemption instrument exempts AMS and the Wesfarmers Group from specific reporting standards, including the Statement of Financial Position, Selected Revenues and Expenses, and various securities-related reports (subsection 16(1)). The exemption applies to these entities indefinitely unless it is revoked by APRA. Breach of the reporting requirements under the Act can lead to penalties. The maximum penalties for non-compliance can include fines and, in severe cases, imprisonment. The precise penalties depend on the nature and severity of the breach. It is important for entities subject to the Act to ensure compliance with the reporting standards to avoid these consequences. In summary, the Act allows APRA to collect financial data from registered entities to aid in prudential regulation. The instrument exempts AMS and the Wesfarmers Group from certain reporting standards to avoid duplication and streamline reporting obligations. Compliance with these provisions is mandatory, and failure to comply can result in significant penalties.

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Area of Law
Financial Sector (Collection of Data)
Instrument
Instrument
Concepts
Reporting & Disclosure Obligations
Enforcement Powers
Exemptions & Exclusions

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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.