Financial Sector (Collection of Data) determination
No. 35 of 2015
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, section 13
Acts Interpretation Act 1901, section 33
Under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine reporting standards, in writing, with which financial sector entities must comply. Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities. Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to issue an 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 revoke any such instrument.
On 6 October 2015, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 35 of 2015 (the instrument), which revokes Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2009, including Reporting Standard FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers (FRS 100) made under that determination.
The instrument commences upon registration on the Federal Register of Legislative Instruments.
1. Background
APRA has power under the Act to make reporting standards which require regulated institutions to submit specified data to APRA through various reporting forms.
Data from these reporting forms are used to assist APRA’s supervisory functions and the functions of other agencies, such as the Reserve Bank of Australia, Australian Bureau of Statistics and the Australian Securities and Investments Commission. APRA also uses the data to collate and publish statistical information and analysis.
The recently repealed First Home Saver Accounts Act 2008 (FHSA Act) established a scheme (the FHSA scheme) in which authorised deposit-taking institutions, life insurance companies and RSE licensees (FHSA providers) could offer First Home Saver Accounts (FHSAs) from 1 October 2008.
In December 2009, APRA determined reporting standard FRS 100 for prudential oversight of all FHSA providers, to assist APRA in fulfilling its role as national statistical agency for the Australian financial sector and to promote transparency and comparability within the superannuation industry.
On 25 June 2015, the Government abolished the FHSA scheme and repealed the FHSA Act, effective from 1 July 2015. From 1 July 2015, FHSAs will be treated as any other account and therefore APRA will no longer require a separate prudential framework to regulate FSHA providers. APRA’s existing prudential framework will include the prudential regulation of former FHSAs from 1 July 2015.
2. Purpose and operation of the instrument
FRS 100 was made for the purpose of collecting specific data about FHSAs. The purpose of this instrument is to revoke FRS 100 to align APRA’s prudential oversight with the Government’s abolition of the FHSA scheme.
3. Consultation
APRA did not consult on the revocation of FRS 100, since this revocation is consistent with the government’s abolition of the FHSA scheme. Reporting about former FSHAs will fall within existing ADI reporting obligations to APRA. APRA recognises that the continued operation of FRS 100 would involve duplicate reporting.
4. Regulation Impact Statement
The Office of Best Practice Regulation (OBPR) has advised that APRA need not complete a Regulation Impact Statement, as it is expected that the revocation of FRS 100 will have only a minor impact on the Australian financial sector.
5. Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
A Statement of compatibility in respect of the instrument has been prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 and is provided at Attachment A to this Explanatory Statement.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Financial Sector (Collection of Data) determination No. 35 of 2015
This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).
Overview of the Legislative Instruments
This legislative instrument revokes Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2009, including Reporting Standard FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers made under that determination.
Human rights implications
APRA has assessed this legislative instrument and is of the view that it does not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA’s assessment, the instrument is compatible with human rights.
Conclusion
This legislative instrument is compatible with human rights as it does not raise any human rights issues.