Financial Sector (Collection of Data) exemption No. 1 of 2017

Administered by Department of the Treasury

Legislation au F2017L01267 Not in force Legislative Instrument

Legislation content

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.              

  1.    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.

Overview

The Financial Sector (Collection of Data) exemption No. 1 of 2017 was introduced under the Financial Sector (Collection of Data) Act 2001 to alleviate the reporting burden on entities within the financial sector. Enacted by the Australian Prudential Regulation Authority (APRA), this instrument specifically targets registrable superannuation entity (RSE) licensees authorised to offer MySuper products. The policy objective of this exemption is to reduce compliance costs for businesses and the community, while ensuring that the necessary data for prudential supervision and publication are still collected. The exemption temporarily relieves RSE licensees from providing specific information under Reporting Standard SRS 703.0 for the reporting period ending 30 June 2017, on the condition that this information is provided for the subsequent reporting period ending 30 September 2017. This measure aligns with the implementation timeline of the Australian Securities and Investment Commission’s enhanced fee and cost disclosure regime, thereby preventing duplication of reporting efforts.

Scope and Application

The Financial Sector (Collection of Data) exemption No. 1 of 2017 applies to registrable superannuation entity (RSE) licensees that are authorised to offer a MySuper product. These entities are exempt from specific reporting requirements under Reporting Standard SRS 703.0 Fees Disclosed, but only on the condition that the information is provided by 28 October 2017. The exemption applies on a Commonwealth level, as it is issued by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001. The exemption does not impose any additional obligations on RSE licensees but seeks to reduce their regulatory reporting burden by providing a temporary exemption from certain reporting requirements. This instrument does not include any exclusions or exemptions beyond those specified. The instrument does not extend or restrict its application through subordinate instruments.

Key Provisions

The Financial Sector (Collection of Data) exemption No. 1 of 2017 provides a specific exemption for registrable superannuation entity (RSE) licensees that are authorised to offer a MySuper product from certain reporting requirements under the Financial Sector (Collection of Data) Act 2001 (the Act) (sections 1, 2). Under this instrument, RSE licensees are exempted from reporting the information required by Reporting Standard SRS 703.0 Fees Disclosed (SRS 703.0) in respect of 30 June 2017. However, this exemption is conditional on the RSE licensees providing this information in respect of 30 September 2017 within 28 calendar days. The exemption applies only to the specified reporting period of 30 June 2017 and does not affect the obligation to report under SRS 703.0 for any subsequent 30 June or 30 September reporting periods. The instrument is designed to alleviate the reporting burden on RSE licensees by aligning the reporting timeline with the implementation of the enhanced fee and cost disclosure regime under the Australian Securities and Investment Commission’s Regulatory Guide 97. RSE licensees subject to this exemption must adhere to the condition that they provide the required SRS 703.0 information by 28 October 2017. This means that while they are exempt from reporting for the 30 June 2017 period, they must ensure that they comply with the reporting requirements for the 30 September 2017 period within the specified timeframe. Failure to do so could result in non-compliance with the Act and potentially expose the RSE licensee to scrutiny or penalties under other relevant legislation, such as the Superannuation Industry (Supervision) Act 1993. RSE licensees must also maintain accurate and up-to-date records of the information required to be reported, ensuring that they can substantiate their compliance if required. The instrument does not impose any additional offences or penalties beyond those already applicable under the Financial Sector (Collection of Data) Act 2001 and related legislation. However, non-compliance with the conditions of the exemption could result in enforcement actions by APRA, including fines or other administrative penalties. Under the Act, APRA has the authority to impose financial penalties for non-compliance with reporting requirements, and the maximum penalty for serious or repeated breaches can be substantial. Additionally, failure to comply with the conditions of the exemption could lead to reputational damage and potential loss of authorisation to offer MySuper products, thereby impacting the RSE licensee’s business operations. It is crucial for RSE licensees to understand and meet the conditions of this exemption to avoid any adverse consequences.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.