Financial Sector (Collection of Data) Act 2001 - Exemption (NPBS Securities Pty Limited)

Administered by Department of the Treasury

Legislation au F2005L01534 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 815 June 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 NPBS Securities Pty Limited ABN 39 108 063 The (“NPBS”). 

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 that have total assets greater than $50 million but less than $500 million:

 

  • RRS 320.0 Statement of Financial Position (Domestic Books)
  • RRS 391.0 Commercial Finance
  • RRS 392.0 Housing Finance
  • RRS 393.0 Lease Finance
  • RRS 394.0 Personal Finance

 

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.  NPBS is aThe Wesfarmers Group of companies are registered entityies., which is a class of financial sector entity.  Accordingly NPBSthe 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 NPBSthe 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. NPBS is a special purpose vehicle established to issue commercial paper to fund the purchase of mortgage receivables from Newcastle Permanent Building Society Limited. The information which would be reportable by NPBS under the Exempted Reporting Standards is already reported by NPBS 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 NPBSthe Wesfarmers Group should be granted an exemption from the Exempted Reporting Standards under paragraph 16(1)(a) of the Act in order to avoid NPBS 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 NPBS 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 facilitate the collection of data necessary for the prudential regulation of the financial sector in Australia, including the banking, general insurance, life insurance, and superannuation industries. The Act, passed by the Parliament of Australia, aims to provide the Australian Prudential Regulation Authority (APRA) with the information needed to formulate monetary policy and ensure the stability and efficiency of the financial system. One of its key provisions allows APRA to collect relevant information from entities within the financial sector, including those not directly regulated by APRA but involved in financial intermediation, referred to as registered entities. In 2005, an instrument was made under the Act to exempt certain registered entities from specific reporting requirements to APRA. This exemption was granted to NPBS Securities Pty Limited and the Wesfarmers Group, which includes Wesfarmers Ltd and its three wholly owned subsidiaries. The exemption was granted because the data that would have been reported by these entities was already being reported to the Australian Bureau of Statistics through other surveys, and the exemption would prevent duplication of reporting obligations. The exemption is effective indefinitely unless revoked by APRA. This measure was deemed consistent with the policy objective of the Act, which is to collect data that assists in formulating monetary policy, and it was determined that data on transactions between related corporations does not contribute to this objective.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities within Australia's financial sector, including banks, general insurance, life insurance, and superannuation industries, as well as registered entities involved in financial intermediation. The Act allows the Australian Prudential Regulation Authority (APRA) to collect data from these entities to assist with prudential regulation. Specifically, APRA can determine reporting standards for registered entities with total assets between $50 million and $500 million. However, under subsection 16(1) of the Act, APRA has the authority to exempt certain entities, or classes of entities, from these reporting standards. In this instance, the instrument of exemption exempts NPBS Securities Pty Limited and the Wesfarmers Group, comprising Wesfarmers Ltd and its three wholly owned subsidiaries, from specific reporting standards to avoid duplication of reporting obligations already fulfilled through other channels. This exemption is not considered to have a substantial impact on businesses or competition and hence, consultation with industry was deemed unnecessary. The exemption is effective indefinitely or until revoked by APRA.

Key Provisions

The Financial Sector (Collection of Data) Act 2001 (the "Act") allows the Australian Prudential Regulation Authority (APRA) to exempt certain financial sector entities from specific reporting requirements. Specifically, section 16(1) of the Act provides APRA with the authority to exempt financial sector entities from some or all of the applicable reporting standards. This authority is exercised through written instruments, which are subject to disallowance under subsection 16(1). APRA, being the prudential regulator of the banking, general insurance, life insurance, and superannuation industries, has the function of collecting information to assist in the prudential regulation of bodies within the financial sector, including registered entities engaged in financial intermediation. Entities such as NPBS Securities Pty Limited and the Wesfarmers Group, which comprises Wesfarmers Ltd and its three wholly owned subsidiaries, are subject to the Act's provisions. These entities are required to report under certain standards determined by APRA. The Exempted Reporting Standards, which are applicable to financial sector entities with total assets between $50 million and $500 million, include detailed reports on financial positions, selected revenues and expenses, and securities held or issued. The instrument of exemption issued under the Act exempts NPBS and the Wesfarmers Group from these reporting standards to prevent duplication of reporting obligations. The exemption applies to specific reporting standards such as the Statement of Financial Position, Selected Revenues and Expenses, and various securities reports. APRA's decision to exempt these entities is based on the understanding that the data collected from these entities would not significantly contribute to the formulation of monetary policy, as the transactions in question are primarily intra-group. APRA has consulted with relevant parties, including the Australian Bureau of Statistics, and determined that the exemption would not have a substantial effect on business or competition. The exemption granted by the instrument is effective indefinitely unless revoked. The instrument is not considered a class instrument and does not substantially alter existing arrangements, hence no industry consultation was deemed necessary. The exemption is intended to streamline reporting processes while maintaining the overall objectives of the Act.

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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.