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.
Overview
The Financial Sector (Collection of Data) determination No. 62 of 2013 was enacted by the Australian Prudential Regulation Authority (APRA) to address the need for updating the data collection processes within the financial sector. This instrument revokes two previously established reporting standards, namely Reporting Standard ARS 326.0 Offshore Banking Units and Reporting Standard ARS 320.7 Deposits and Loans Classified by State and Territory, which APRA identified as no longer necessary. The revocation of these standards aims to streamline the data collection process, thereby reducing the reporting burden on authorised deposit-taking institutions (ADIs) and registered financial corporations (RFCs) while maintaining the relevance of the collected data. APRA’s review of its data collection practices was undertaken to ensure that the information gathered remains pertinent and necessary, with the goal of minimising unnecessary administrative burdens on financial sector entities.
Scope and Application
The Financial Sector (Collection of Data) determination No. 62 of 2013 applies to authorised deposit-taking institutions (ADIs) and registered financial corporations (RFCs) within the financial sector of Australia, specifically those entities required to report under the Financial Sector (Collection of Data) Act 2001. This instrument, issued by the Australian Prudential Regulation Authority (APRA), revokes certain reporting standards previously mandated under the Act, thereby reducing the reporting burden on the financial institutions affected. The determination directly impacts the collection of specific financial data, namely that concerning offshore banking units and deposits and loans classified by state and territory, which APRA has determined are no longer necessary for its regulatory purposes or for other relevant authorities such as the Reserve Bank of Australia and the Australian Bureau of Statistics. The revocation is effective as of 30 April 2013, and it applies on a national level, given that APRA operates under the Commonwealth jurisdiction. This instrument does not introduce any new exclusions, exemptions, or thresholds but instead streamlines existing requirements by eliminating outdated reporting standards.
Key Provisions
The Financial Sector (Collection of Data) determination No. 62 of 2013 (the instrument) made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001 (the Act) serves to revoke two specific reporting standards: Reporting Standard ARS 326.0 - Offshore Banking Units and Reporting Standard ARS 320.7 - Deposits and Loans Classified by State and Territory. This revocation, which came into effect on 30 April 2013, aims to streamline the data collection process by eliminating the need for information that is no longer deemed necessary by APRA, the Reserve Bank of Australia, or the Australian Bureau of Statistics. The primary objective of this determination, as outlined in section 2 of the explanatory statement, is to reduce the reporting burden on authorised deposit-taking institutions (ADIs) and registered financial corporations (RFCs) while maintaining the relevance and efficiency of the data collection process.
Under the Act, APRA has the authority to establish reporting standards that financial sector entities must comply with, and this power includes the ability to revoke such standards when they are no longer needed (sections 13(1)(a) of the Act and 33(3) of the Acts Interpretation Act 1901). The determination specifically revokes the aforementioned reporting standards, which previously required ADIs and RFCs to submit data on offshore banking units and deposits and loans classified by state and territory. By revoking these standards, APRA has taken steps to ensure that the data collection process is both efficient and relevant to the needs of regulatory bodies.
Entities governed by this determination, primarily ADIs and RFCs, now have the obligation to cease reporting under the revoked standards. This means that as of the commencement date of the determination, these entities must no longer submit the specified data to APRA. This change in reporting requirements is intended to alleviate some of the administrative burdens placed on financial institutions, allowing them to focus on other critical aspects of their operations. APRA’s consultation process, which involved extensive discussions with ADIs and industry bodies between March and April 2013, aimed to ensure that the changes were communicated effectively and that any practical issues associated with the revocation were addressed.
There are no specific offences, penalties, or civil/criminal consequences outlined in the instrument for non-compliance with the revoked reporting standards. However, financial sector entities are still bound by the general obligations of the Act to provide accurate and timely information as required by APRA. Failure to comply with any reporting requirement under the Act could potentially lead to regulatory action, including enforcement actions or penalties as provided by other relevant legislation. The determination itself does not introduce new penalties but rather simplifies the reporting landscape by removing outdated requirements.