Financial Sector (Collection of Data) exemption No. 1 of 2017
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, section 16
Under subsection 16(1B) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA may, by legislative instrument, exempt a class or kind of financial sector entities from the requirement to comply with all the requirements contained in any one or more applicable reporting standards or a specified requirement or requirements contained in an applicable reporting standard or applicable reporting standards. Under subsection 16(2) of the Act, an exemption may be subject to conditions and limited in the time of its operation.
On 10 December 2015, APRA determined Reporting Standard SRS 703.0 Fees Disclosed (SRS 703.0). SRS 703.0 applies to each registrable superannuation entity (RSE) licensee (RSE licensee) that is authorised to offer a MySuper product.
On 20 September 2017, APRA made Financial Sector (Collection of Data) exemption No. 1 of 2017 (the instrument) which exempts all RSE licensees that are authorised to offer a MySuper product from the requirements specified in paragraphs 7(b) and 9(b) of SRS 703.0, namely to provide the information required by SRS 703.0 in respect of 30 June 2017 within 3 months. This exemption is conditional on this information being provided in respect of 30 September 2017 within 28 calendar days.
The instrument commences upon registration on the Federal Register of Legislation and ceases to have effect on 29 October 2017.
- Background
APRA collects a broad range of financial and risk data from the institutions it regulates as inputs to its supervisory assessments. APRA also collects data from those institutions and from unregulated institutions to assist the Reserve Bank of Australia (RBA), the Australian Bureau of Statistics (ABS) and other financial sector agencies to perform their roles. APRA additionally collects some data to enable it to publish information about regulated institutions, and in other cases, to assist the Minister to formulate financial policy. Much of the data APRA collects are used for multiple purposes to reduce the burden of reporting.
APRA collects data under SRS 703.0 for the purposes of prudential supervision and publication as required under s. 348A of the Superannuation Industry (Supervision) Act 1993.
APRA’s collection of data under SRS 703.0 is required both annually as at 30 June and at any other time the Product Disclosure Statement (PDS) is updated. RSE licensees must also provide the information required by SRS 703.0 in respect of the date on which the RSE licensee is authorised to offer a MySuper product (where that date is after 1 July 2016).
The information required to be provided under SRS 703.0 mirrors the information required to be disclosed in a PDS. The Australian Securities and Investment Commission (ASIC) has implemented an enhanced fee and cost disclosure regime, reflected in Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements (RG 97). The implementation of RG 97 has been extended to 30 September 2017 subject to certain conditions being met. The result of this extended transition to RG 97 means that most RSE licensees would be required to report information under SRS 703.0 at both 30 June 2017 and 30 September 2017.
2. Purpose and operation of the instrument
The instrument aims to reduce the reporting burden on RSE licensees by exempting RSE licensees from reporting under SRS 703.0 in respect of 30 June 2017 on the condition that this information is provided in respect of 30 September 2017. This is in line with APRA’s commitment to seek opportunities to reduce compliance costs for business and the community.
RSE licensees must still report the information required by SRS 703.0 in respect of each subsequent 30 June after 30 September 2017. The information required by SRS 703.0 in respect of 30 September 2017 must be provided by 28 October 2017. This time frame is consistent with the existing obligation to provide information after an updated PDS takes effect in paragraph 10 of SRS 703.0.
3. Consultation
No consultation was undertaken as the instrument does not substantially alter existing arrangements. The requirement to provide information to APRA under SRS 703.0 remains unchanged with the exception that the date on which this information must be provided for the 2017 reporting period is delayed by three months. This instrument will not impose any additional obligations on RSE licensees. Rather, the instrument will reduce the regulatory reporting burden by providing RSE licensees with a limited exemption from a specific reporting requirement.
4. Regulation Impact Statement
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required for this legislative instrument.
5. Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 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) exemption No. 1 of 2017
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.
Overview of the disallowable legislative instrument
This Legislative Instrument exempts registrable superannuation entity licensees (RSE licensees) that are authorised to offer a MySuper product from reporting the information required by Reporting Standard SRS 703.0 Fees Disclosed (SRS 703.0) in respect of 30 June 2017.
RSE licensees must still report the information required by SRS 703.0 in respect of 30 September 2017 and thereafter in respect of each subsequent 30 June.
Human rights implications
APRA has assessed this Legislative Instrument against the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act) and determined that none of the Articles are conceivably of relevance as this Legislative Instrument will not have any direct or indirect effect on the rights of individual persons.
Consequently, this Legislative 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.
Conclusion
Accordingly, in APRA’s assessment, this Legislative Instrument is compatible with human rights as it does not raise any human rights issues.