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Financial Sector (Collection of Data) determination No. 80 of 2005 - Reporting Standard ARS 231.3a (2005) - International Exposures: Consolidated (Domestic Entity)

Financial Sector (Collection of Data) determination No. 80 of 2005 - Reporting Standard ARS 231.3a (2005) - International Exposures: Consolidated (Domestic Entity)

Administered by Department of the Treasury

Legislation au F2005L02151 Not in force Legislative Instrument

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Financial Sector (Collection of Data) Determinations Nos. 65 to 104 of 2005 – reporting standards applying to authorised deposit-taking institutions

EXPLANATORY STATEMENT

Issued by the authority of the Australian Prudential Regulation Authority (‘APRA’)

Financial Sector (Collection of Data) Act 2001 (‘FSCOD Act’), s13(1)(a) and s 15

Acts Interpretation Act 1901, s 33(3)

Subsection 13(1) of the FSCOD Act provides that APRA may, by writing, determine reporting standards that are required to be complied with by financial sector entities. Section 15 of the FSCOD Act gives APRA power to make a formal declaration of the date when reporting standards begin to apply. (Although s 15(2) provides for such declarations to be published in the Gazette, s 56(1) of the Legislative Instruments Act 2003 provides that this requirement is fulfilled by registration on the Federal Register of Legislative Instruments.) Subsection 33(3) of the Acts Interpretation Act gives APRA power to revoke reporting standards so made.

Financial Sector (Collection of Data) Determinations Nos 65 to 103 of 2005 determine reporting standards which will apply to authorised deposit-taking institutions or ADIs (within the meaning of the Banking Act 1959). Determination No. 104 of 2005 revokes certain old reporting standards, which the new ones replace. The new reporting standards are substantially in the same form as the old ones.

Remaking these reporting standards will simplify compliance with the Legislative Instruments Act 2003. That Act requires Commonwealth agencies to back capture delegated legislation for which they are responsible on the Federal Register of Legislative Instruments. Prior to the enactment of the Legislative Instruments Act, APRA generally made reporting standards by way of a single determination covering an entire series of reporting standards. Thus the principal instrument for back capture would comprise multiple reporting standards and forms running to hundreds of pages. For back capturing purposes, a legislative instrument of this size would be unwieldy and need to be broken up into several electronic files. APRA has decided to remake the reporting standards, in substantially the same form, but with an individual determination for each reporting standard. This will simplify the future revocation or amendment of individual reporting standards and the preparation of compilations, as well as avoid the need to back capture the replaced standards as a cumbersome electronic file.

The new reporting standards will formally begin to apply (under s 15 of the FSCOD Act) from the date of registration on the Federal Register of Legislative Instruments. A new reporting standard will require a return to be lodged in respect of a reporting period where the date for lodgement under the new reporting standard is a day after the date of registration of the standard on the Federal Register of Legislative Instruments. So, for example, if a new reporting standard requires an ADI to lodge a quarterly return 25 business days after the end of the quarter, and the quarter for an ADI ends on 30 June, then the ADI will be required to lodge under the new reporting standard (assuming the new reporting standard is registered before the expiry of 25 days from 30 June 2005). As the reporting requirements and times under each old and corresponding new standard are substantially identical it will not, in practice, matter if an ADI inadvertently refers to one of the old forms or standards when reporting during this transitional phase.

Each old reporting standard will be revoked on the date the new standard replacing it comes into effect. However, this will be without prejudice to any obligation to lodge an overdue return under an old reporting standard.

Financial Sector (Collection of Data) Determination No. 65 of 2005: Reporting Standard ARS 110.0 (2005)

Data supplied under this reporting standard will be used by APRA to assess an ADI’s compliance with the capital adequacy requirements of Prudential Standard APS 111 Capital Adequacy: Measurement of Capital. Information in the return will be tracked over reporting periods to analyse/highlight any material shift in the capital structure.

Financial Sector (Collection of Data) Determination No. 5 of 2004 varied the original ARS 110.0 (which had come into effect on 1 July 2002) to substitute a new reporting form, which changes reporting requirements for ADIs concerning asset revaluation reserves and intangible assets. ARS 110.0 (2005) incorporates this new form.

The only material difference between the new reporting standard and the old reporting standard (as amended) is in the clause (made in accordance with paragraph 13(2)(f) of the FSCOD Act) permitting the adjustment of reporting periods. The old clause required APRA to take into account prudential matters and the circumstances of the ADI (without precluding the taking into account of other relevant considerations) in varying a reporting period. The new clause specifically requires APRA to take into account the requirements of the Australian Bureau of Statistics and the Reserve Bank of Australia. This reflects the fact that data collected under the reporting standards may be used by those agencies for statistical purposes or in the formulation of monetary policy. It should be noted that any decision APRA makes will need to weigh up relevant considerations for and against any change to a reporting period.