Financial Sector (Collection of Data) exemption No. 2 of 2016
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.
On 5 December 2013, APRA determined Reporting Standard SRS 703.0 Fees Disclosed (former SRS 703.0) by Financial Sector (Collection of Data) (reporting standard) determination No. 100 of 2013 (the 2013 determination). Former SRS 703.0 applied to each registrable superannuation entity licensee that is authorised to offer a MySuper product (collectively the financial sector entities).
On 23 August 2016, APRA made Financial Sector (Collection of Data) exemption
No. 2 of 2016 (the instrument) which exempts all the financial sector entities from the requirement, specified in paragraph 7(b) of former SRS 703.0, to provide the information required by former SRS 703.0 in respect of 30 June 2016. The instrument commences upon registration on the Federal Register of Legislation.
- 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.
Former SRS 703.0 came into effect on 1 July 2014 and required the financial sector entities to provide the information required by former SRS 703.0 in respect of 1 July 2014, 30 June 2015 and each subsequent 30 June, and also the date on which an RSE licensee is authorised to offer a MySuper product (where that date is after 1 July 2014).
A new version of SRS 703.0 (new SRS 703.0) was determined on 10 December 2015 by Financial Sector (Collection of Data) (reporting standard) determination No. 41 of 2015 and came into effect on 1 July 2016. This determination also revoked the 2013 determination. New SRS 703.0 requires the financial sector entities to provide the information required by new SRS 703.0 in respect of 1 July 2016 and each subsequent 30 June, and also the date on which an RSE licensee is authorised to offer a MySuper product (where that date is after 1 July 2016).
New SRS 703.0, former SRS 703.0 and SRF 703.0 can be obtained from: http://www.apra.gov.au/Super/Pages/Superannuation-reporting-framework.aspx
2. Purpose and operation of the instrument
Due to the reporting requirements under the new and former SRS 703.0 and the date on which the former SRS 703.0 was revoked and the new SRS 703.0 took effect, the financial sector entities are required to report in respect of two consecutive days, being 30 June 2016 and 1 July 2016. The reporting requirements in respect of the two consecutive dates are also different, with the former regime reporting on APRA’s ‘look-through’ basis and the new regime reporting on data disclosed in the financial sector entities’ Product Disclosure Statements.
In line with APRA’s commitment to seek opportunities to reduce compliance costs for business and the community, the instrument aims to reduce the reporting burden on the financial sector entities by exempting them from providing the information required by former SRS 703.0 in respect of 30 June 2016.
The financial sector entities must still report the information required by new SRS 703.0 in respect of 1 July 2016 and each subsequent 30 June, and also the date on which an RSE licensee is authorised to offer a MySuper product (where that date is after 1 July 2016).
3. Consultation
No consultation was undertaken as the instrument will not impose any additional obligations on the financial sector entities. Rather, the instrument will reduce the regulatory reporting burden on the financial sector entities by providing them 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. 2 of 2016
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 will enable APRA to exempt registrable superannuation entity licensees that are authorised to offer a MySuper product (the financial sector entities) from reporting the information required by Reporting Standard SRS 703.0 Fees Disclosed which came into effect on 1 July 2014 (former SRS 703.0) in respect of
30 June 2016.
The financial sector entities must still report the information required by Reporting Standard SRS 703.0 Fees Disclosed which came into effect on 1 July 2016 (new SRS 703.0) in respect of 1 July 2016 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.