Financial Sector (Collection of Data) Act 2001 - Exemption (Waratah Receivables Corporation Pty Limited)

Administered by Department of the Treasury

Legislation au F2005L01936 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 Waratah Receivables Corporation Pty Limited ABN 82 061 389 277 (“Waratah”).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.  Waratah is aThe Wesfarmers Group of companies are registered entityies., which is a class of financial sector entity.  Accordingly Waratahthe 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 Waratahthe 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. Waratah is the special purpose vehicle in a securitisation arrangement.  The information which would be reportable by Waratah under the Exempted Reporting Standards is already reported by Waratah 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 Waratahthe Wesfarmers Group should be granted an exemption from the Exempted Reporting Standards under paragraph 16(1)(a) of the Act in order to avoid Waratah 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 Waratah 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 relevant data to aid in the formulation of monetary policy, thereby ensuring the stability and efficiency of the financial sector. This Act empowers the Australian Prudential Regulation Authority (APRA) to collect information from both regulated and non-regulated financial sector entities, known as registered entities, to support its regulatory functions. The Act was enacted by the Parliament of Australia and its policy objective is to gather essential data that contributes to effective monetary policy formulation and prudential regulation. An instrument dated 6 July 2005, made under the authority of the Act, exempts Waratah Receivables Corporation Pty Limited and the Wesfarmers Group from certain reporting standards determined by APRA. This exemption aims to prevent duplication of reporting obligations, as the data required under these standards is already reported by the entities to the Australian Bureau of Statistics. APRA has determined that the exemption aligns with the objectives of the Act, given that data on transactions between related corporations does not assist in the purpose of monetary policy formulation.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 (the "Act") applies to registered entities and certain financial sector entities, including Waratah Receivables Corporation Pty Limited and the Wesfarmers Group, which comprises Wesfarmers Ltd and its three wholly owned subsidiaries. The Act enables the Australian Prudential Regulation Authority (APRA), as the prudential regulator of the banking, general insurance, life insurance, and superannuation industries, to collect information from these entities to assist with prudential regulation. The Act also extends to registered entities involved in financial intermediation. APRA has the authority to determine specific reporting standards under section 13 of the Act, which apply to financial sector entities with total assets exceeding $500 million. These reporting standards cover various aspects of financial positions, revenues, expenses, and securities held by these entities. The instrument dated 6 July 2005 exempts Waratah and the Wesfarmers Group from specific reporting standards, such as the Statement of Financial Position, Selected Revenues and Expenses, and various securities held, to avoid duplication of reporting obligations as the information is already reported to the Australian Bureau of Statistics through other surveys. APRA's decision to grant the exemption was based on the confirmation from Wesfarmers Ltd that the entities' funds raised are used solely for intra-group lending and do not involve third parties, thereby not impacting the entities' balance sheet exposures. The exemption is not considered to have a substantial effect on business or competition, and no industry consultation was deemed necessary. The exemption is in force indefinitely or until revoked by APRA.

Key Provisions

The Financial Sector (Collection of Data) Act 2001 (the “Act”) empowers the Australian Prudential Regulation Authority (APRA) to collect information that assists with the prudential regulation of financial sector bodies. Under section 13, APRA has determined various reporting standards for registered entities involved in financial intermediation. However, under subsection 16(1) of the Act, APRA may exempt a financial sector entity from some or all of these reporting standards. This provision allows APRA to tailor the reporting requirements to specific entities, thereby preventing unnecessary duplication and ensuring that the data collected is relevant and useful. The Act imposes obligations on APRA to collect relevant financial data from registered entities and on these entities to report the required information. APRA must determine the reporting standards under section 13 and can exempt entities from these standards under subsection 16(1). Registered entities must comply with the applicable reporting standards unless exempt. The exemption instrument in this case specifically exempts Waratah Receivables Corporation Pty Limited and the Wesfarmers Group from certain reporting standards. The Wesfarmers Group, as a registered entity, must otherwise comply with the reporting standards unless granted an exemption by APRA. Breach of the reporting requirements set out in the Act can lead to legal consequences. While the Act itself does not explicitly state the penalties for non-compliance, it is reasonable to infer that failure to comply with APRA’s reporting requirements could result in enforcement actions by APRA, which may include fines, legal proceedings, or other regulatory measures. Given the importance of the data for prudential regulation, non-compliance could also have significant reputational and financial repercussions for the entities involved. The maximum penalties for such breaches would be determined by the courts and could vary based on the severity and circumstances of the non-compliance.

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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.