Financial Sector (Collection of Data) exemption No. 2 of 2016

Administered by Department of the Treasury

Legislation au F2016L01320 In force Legislative Instrument

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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.              

  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.

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.

Overview

The Financial Sector (Collection of Data) exemption No. 2 of 2016 was introduced by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001. This legislation aims to alleviate the reporting burden on financial sector entities by exempting them from a specific requirement under the former Reporting Standard SRS 703.0 Fees Disclosed. The problem this exemption addresses is the overlap in reporting dates and standards that would otherwise require entities to report under both the former and new standards on consecutive days, creating a significant administrative burden. The policy objective is to reduce compliance costs for the financial sector entities while ensuring they continue to report the necessary information under the new reporting standard. APRA determined that this exemption would not impose additional obligations on the entities but would instead streamline their reporting requirements by exempting them from a particular reporting obligation for a specific date. This approach aligns with APRA's commitment to seeking opportunities to reduce the regulatory burden on the financial sector. The instrument was introduced without requiring a consultation process or a Regulation Impact Statement, as it was deemed not to impose additional obligations but rather to provide a limited exemption. Additionally, a Statement of Compatibility with Human Rights was prepared to confirm that the instrument does not engage any of the rights or freedoms recognised in the international instruments listed under the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Financial Sector (Collection of Data) exemption No. 2 of 2016 is a legislative instrument made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001. This instrument applies to registrable superannuation entity licensees that are authorised to offer a MySuper product, collectively referred to as financial sector entities. The exemption specifically relates to a requirement under the former Reporting Standard SRS 703.0 Fees Disclosed, exempting these entities from providing certain information for the date 30 June 2016. The instrument aims to alleviate the reporting burden on these entities by excusing them from this particular reporting requirement, while they are still required to comply with the new reporting standards that came into effect on 1 July 2016. The exemption does not impose any additional obligations on the entities and is part of APRA’s initiative to reduce compliance costs. The instrument is compatible with human rights as it does not affect the rights of individual persons, according to the Statement of Compatibility provided under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Financial Sector (Collection of Data) exemption No. 2 of 2016, under the Financial Sector (Collection of Data) Act 2001, allows the Australian Prudential Regulation Authority (APRA) to exempt certain entities from specific reporting requirements. Specifically, section 16(1B) of the Act empowers APRA to exempt a class or kind of financial sector entities from complying with certain reporting standards or specified requirements. The 2016 instrument exempts all financial sector entities from providing information under former SRS 703.0 for 30 June 2016. The instrument aims to alleviate the reporting burden on entities by exempting them from a specific requirement while still requiring them to report under the new SRS 703.0 from 1 July 2016 onwards. The obligations imposed on the entities by this legislation require them to continue adhering to the reporting standards for dates post 30 June 2016, as specified in the new SRS 703.0. These entities must provide the necessary information under the new regime as stipulated in the new SRS 703.0, ensuring compliance with the updated reporting framework. This includes reporting on a data disclosure basis, as opposed to the previous ‘look-through’ basis. The entities must also report on the date they are authorised to offer a MySuper product if that date is after 1 July 2016. There are no specific offences, penalties, or consequences outlined in the instrument for non-compliance with the exempted reporting requirement. However, failure to comply with the new SRS 703.0 after 30 June 2016 could result in penalties under the Financial Sector (Collection of Data) Act 2001. These penalties could include fines and other civil or criminal consequences, as determined under the general provisions of the Act. The exact penalties would depend on the nature and severity of the non-compliance, as specified in the overarching legislation.

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Reporting & Disclosure Obligations
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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.