Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2009
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001 (the Act), paragraph 13(1)(a)
Under paragraph 13(1)(a) of the Act, APRA may, by writing, determine reporting standards with which financial sector entities must comply. Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities. Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to issue an instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to revoke any such instrument.
Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2009 revokes Reporting Standard FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers made by Financial Sector (Collection of Data) (reporting standard) determination No. 56 of 2008 (the Old Standard) and determines Reporting Standard FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers (the New Standard).
Under subsection 15(1) of the Act, APRA has determined that Financial Sector
(Collection of Data) (reporting standard) determination No. 1 of 2009 be effective from the later of 31 March 2009 and the date of registration on the Federal Register of Legislative Instruments.
- Background
This Explanatory Statement explains the changes being made by APRA to the Old Standard.
The New Standard comprises:
- the body of the reporting standard itself;
- Form FRF 100.0 Reporting Requirements for First Home Saver Accounts Providers (FRF 100.0), which must be completed by the FHSA provider; and
- a set of detailed technical instructions regarding completion of FRF 100.0.
The first submission of quarterly data required from FHSA providers will relate to the reporting period ended 31 December 2008. During this quarter, APRA identified an omission on the form which led to a gap in information being collected. This relates to item 2.1.7 of FRF 100.0. Specifically, the form did not collect data on accounts closed as a result of a repayment made in accordance with subsection 992A(4) (unsolicited offer of financial product), section 1016F (defective product disclosure document) or section 1019B (cooling-off period) of the Corporations Act 2001 or following a payment made in accordance with subsection 51B(1) (unclaimed money) of the First Home Saver Accounts Act 2008 or on other permissible grounds not covered by items 2.1.3 to 2.1.6 of FRF 100.0.
This has now been rectified by amending the FRF 100.0 and the set of detailed technical instructions regarding completion of FRF 100.0.
Additionally, the words “following a transfer” were inserted in item 2.1.4 to clarify that the reason for closure will be that the FHSA holder will give notice that he/she will no longer satisfy the FHSA eligibility requirements.
As at 31 December 2008, FRF 100.0 was due from approximately 13 Authorised Deposit-taking Institutions, who have been already notified of the amendment. Hence the impact on reporting entities is minor.
2. Purpose and operation of the instrument
The New Standard outlines the overall requirements for the provision of information to APRA relating to the First Home Saver Accounts business of First Home Saver Accounts providers. Data collected are used by APRA for the purpose of prudential supervision, including assessing compliance with prudential standards. The data may also be used by the Reserve Bank of Australia, the Australian Bureau of Statistics, the Australian Securities and Investments Commission and the Australian Tax Office.
The New Standard applies to a reporting period ending on or after 31 March 2009. The Old Standard applies in respect of the reporting period ending 31 December 2008.
3. Consultation
APRA undertook consultation on its proposed reporting requirements for FHSA providers in June and July 2008. The issues raised by industry and other interested parties were considered and incorporated in the final reporting standard, where appropriate. As the amendments to the Old Standard are minor, public consultation was not necessary.
Overview
The Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2009 was enacted by the Australian Prudential Regulation Authority (APRA) to address a gap in the collection of data regarding the closure of First Home Saver Accounts (FHSA). This determination revokes the previous Reporting Standard FRS 100.0 made by the Financial Sector (Collection of Data) (reporting standard) determination No. 56 of 2008 and introduces a new standard to ensure comprehensive data collection on the closure of FHSAs. The policy objective is to enhance the prudential supervision of FHSA providers by ensuring all relevant data is collected, thereby improving the oversight and regulation of the financial sector. This determination became effective from the later of 31 March 2009 and the date of registration on the Federal Register of Legislative Instruments.
Scope and Application
The Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2009, issued by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, sets forth the new reporting requirements for entities providing First Home Saver Accounts (FHSA). This determination revokes the previous Reporting Standard FRS 100.0 made by determination No. 56 of 2008 and establishes the new Reporting Standard FRS 100.0. It applies to entities involved in FHSA business, specifically those entities that must submit financial and accounting data to APRA for prudential supervision. The New Standard became effective from 31 March 2009, following its registration on the Federal Register of Legislative Instruments. This determination rectifies a previously identified omission in the data collection form, ensuring that all relevant account closure reasons are captured. The New Standard is designed to streamline the reporting process for approximately 13 Authorised Deposit-taking Institutions, who have already been notified of the amendments.
Key Provisions
The Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2009 primarily focuses on setting the reporting standards for financial sector entities, particularly those involved in First Home Saver Accounts (FHSA). Under section 13(1)(a) of the Financial Sector (Collection of Data) Act 2001, the Australian Prudential Regulation Authority (APRA) is authorised to determine these standards. The determination revokes the previous Reporting Standard FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers (the Old Standard) made by determination No. 56 of 2008, and introduces a new standard (the New Standard). This new standard includes the body of the reporting standard, Form FRF 100.0 Reporting Requirements for First Home Saver Accounts Providers, and a set of technical instructions for completing the form. The New Standard is effective from 31 March 2009 or the date of registration on the Federal Register of Legislative Instruments, whichever is later.
Under the New Standard, FHSA providers must comply with specific obligations to report financial and accounting data, as well as other relevant information regarding their business activities. These obligations are designed to ensure that APRA and other regulatory bodies have access to comprehensive and accurate data for prudential supervision and compliance assessment. The New Standard requires FHSA providers to complete Form FRF 100.0, which includes detailed technical instructions to ensure proper completion. The form collects data on various aspects of FHSA business, including account closures due to specific reasons such as unsolicited offers of financial products, defective product disclosure documents, cooling-off periods, and unclaimed money.
Failure to comply with the reporting requirements under the New Standard may result in legal consequences. Under section 33(3) of the Acts Interpretation Act 1901, APRA has the power to revoke any such instrument, indicating that non-compliance could lead to penalties or enforcement actions. While the specific penalties are not detailed in the determination, breaches of reporting requirements can generally lead to civil or criminal penalties under the relevant acts, depending on the severity and intent of the breach. Compliance is essential to avoid potential enforcement actions and to ensure the smooth operation of prudential supervision by APRA and other regulatory bodies.