Financial Sector (Collection of Data) (reporting standard) determination
No 14 of 2010
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, paragraph 13(1)(a) and section 15
Acts Interpretation Act 1901, subsection 33(3)
Under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (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. Section 15 of the Act gives APRA power to make a formal declaration of the date when reporting standards begin to apply. 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. 14 of 2010 revokes the following reporting standards applying to certain registered entities and their obligation to report on their international exposures:
- Reporting Standard RRS 231.1a International Exposures: Locational (Assets) Part 1;
- Reporting Standard RRS 231.1b International Exposures: Locational (Liabilities) Part 1;
- Reporting Standard RRS 231.2 International Exposures: Locational Part 2:
- Reporting Standard RRS 231.3a International Exposures: Consolidated (Domestic Entity): and
- Reporting Standard RRS 231.3b International Exposures: Consolidated (Foreign Entity)
(collectively known as the International Exposure Reporting Standards).
The International Exposure Reporting Standards came into effect on 1 July 2006 pursuant to determinations 44 - 48 of 2006.
Determination No. 14 of 2010 commences on the day after registration on the Federal Register of Legislative Instruments.
- Background
This Explanatory Statement explains the changes being made by APRA to the reporting framework for registered entities.
Under the International Exposure Reporting Standards, only a registered entity that at the end of its most recent complete financial year had:
- total assets of $500 million or more; and
- overseas assets of $250 million or more; or
- borrowings from non-residents of $250 million or more
were previously required to report information to APRA on their international exposures in accordance with the International Exposure Reporting Standards.
This data was collected to fulfil APRA’s obligation to the Bank of International Exposure (BIS) in providing aggregate international banking statistics for Australia.
APRA has reviewed the aggregate data and agreed with the BIS that international exposures data for registered entities are no longer required.
Determination No. 14 of 2010 removes the reporting obligation on registered entities and reduces their reporting burden.
2. Consultation
On 6 October 2010, APRA advised by email to each affected registered entity, of APRA’s intention to revoke the International Exposure Reporting Standards and remove the reporting burden on them. Contact details were provided in the email in the event an entity had any comments or questions.
As to date, no comments/responses were received.
A letter was also published on APRA’s website on 6 October 2010.