Financial Sector (Collection of Data) determination No. 62 of 2013
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001(the Act), paragraph 13(1)(a)
Acts Interpretation Act 1901, subsection 33(3)
Under paragraph 13(1)(a) of the Act, APRA may, by writing, determine reporting standards 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 10 May 2013, APRA made Financial Sector (Collection of Data) determination No. 62 of 2013 (the instrument) which revokes the following instruments:
(1) Financial Sector (Collection of Data) (reporting standard) determination No. 36 of 2008, including Reporting Standard ARS 320.7 Deposits and Loans Classified by State and Territory made under that Determination; and
(2) Financial Sector (Collection of Data) (reporting standard) determination No. 42 of 2008, including Reporting Standard ARS 326.0 Offshore Banking Units made under that Determination.
The instrument commences on 30 April 2013.
- Background
APRA is currently reviewing its existing practice of collecting data from authorised deposit taking institutions (ADIs) and registered financial corporations (RFCs). The review aims to improve the relevance of data collected and to keep reporting burdens for ADIs and RFCs to a necessary minimum. An initial stage of the review included examining the current use of data collected. During this stage APRA identified two reporting standards that are no longer needed by APRA, the Reserve Bank of Australia, or the Australian Bureau of Statistics. APRA is revoking these two reporting standards and their respective reporting forms:
- Reporting Standard ARS 326.0 - Offshore Banking Units; and
- Reporting Standard ARS 320.7 - Deposits and Loans Classified by State and Territory.
2. Purpose and operation of the instrument
The purpose of the instrument is to revoke Reporting Standard ARS 326.0 Offshore Banking Units and Reporting Standard ARS 320.7 Deposits and Loans Classified by State and Territory (the reporting standards). The data collected under these reporting standards is no longer required, and the revocation of the reporting standards will reduce the reporting burden of ADIs.
3. Consultation
APRA undertook extensive consultations on its proposed revocation of the reporting standards between March 2013 and April 2013. Submissions were received from, and discussions held with, ADIs and industry bodies.
The consultation also ensured clear communication with industry on the main changes proposed and took into account practical issues in revoking the reporting standards. There were no submissions that opposed the revocation.
4. Regulatory Impact Statement
APRA has consulted with the Office of Best Practice Regulation (OBPR) and the OBPR has confirmed that the changes implemented by the instrument are of a minor nature. The OBPR has confirmed that a Regulatory Impact Statement (RIS) is not required.
5. Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
APRA has assessed the instrument against the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act) and determined that none of those instruments are of relevance to the instrument.
The instrument will remove particular reporting obligations for certain ADIs, and will not have any direct or indirect effect on the rights of individual persons.
Consequently, the instrument 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, this legislative instrument is compatible with human rights.