Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2017
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, sections 13 and 15
Acts Interpretation Act 1901, section 33
Under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine reporting standards, in writing, 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.
On 19 September 2017, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2017 (the instrument) which revokes Reporting Standard ARS 321.0 Statement of Financial Position (Offshore Operations) (ARS 321.0) made under Financial Sector (Collection of Data) (reporting standard) determination No. 38 of 2008.
The instrument takes effect upon registration on the Federal Register of Legislation.
- Background
The purpose of ARS 321.0 was to collect basic financial data on the offshore operations of authorised deposit-taking institutions (ADIs) on behalf of the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS). As the data collected under ARS 321.0 is no longer of priority to the RBA and the ABS, the reporting standard can now be revoked.
2. Purpose and operation of the instrument
The purpose of the instrument is to revoke ARS 321.0 as the data collected under this reporting standard is no longer required. This will reduce the reporting burden on ADIs.
3. Consultation
APRA undertook public consultation on the proposed cessation of ARS 321.0 from January 2017 to April 2017 as part of the economic and financial statistics data modernisation consultation.[1] Submissions were received from both reporting entities and industry bodies, with no objections raised in response to the proposed revocation of ARS 321.0. APRA confirmed its intention to revoke ARS 321.0 in its August 2017 response paper ‘Response to submissions – Economic and financial statistics’.[2]
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) (reporting standard) determination No. 14 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 (HRPS Act).
Overview of the Legislative Instrument
The purpose of this instrument is to revoke Reporting Standard ARS 321.0 Statement of Financial Position (Offshore Operations) made under Financial Sector (Collection of Data) (reporting standard) determination No. 38 of 2008.
Human rights implications
APRA has assessed the instrument and is of the view that it does not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA’s assessment the instrument is compatible with human rights.
Conclusion
The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
[1] APRA’s discussion paper ‘Economic and financial statistics’ (January 2017) is available at: http://www.apra.gov.au/adi/PrudentialFramework/Documents/EFS%20modernisation%20-%20Discussion%20paper.pdf
[2] APRA’s response paper is available at: http://www.apra.gov.au/adi/PrudentialFramework/Documents/Economic_and_financial_statistics_response_paper_2017.pdf
Overview
The Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2017 was enacted to address the need for updating and streamlining financial reporting requirements within the Australian financial sector. This legislative instrument, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, revokes the previously established reporting standard ARS 321.0, which had been in place since 2008 to collect financial data on the offshore operations of authorised deposit-taking institutions (ADIs). Given that the data collected under this standard is no longer deemed a priority by the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS), the decision to revoke ARS 321.0 aims to reduce the reporting burden on ADIs, thereby enhancing efficiency within the sector. APRA's decision was made following a period of public consultation, during which no objections were raised to the proposed revocation. The instrument is compatible with human rights, as assessed by APRA, and does not require a Regulation Impact Statement.
Scope and Application
The Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2017, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, revokes the previously established Reporting Standard ARS 321.0 Statement of Financial Position (Offshore Operations) issued in 2008. This determination applies specifically to authorised deposit-taking institutions (ADIs) in the financial sector, aiming to alleviate the reporting burden associated with collecting offshore financial data, which is no longer deemed necessary by the Reserve Bank of Australia and the Australian Bureau of Statistics. The revocation reflects a shift in priority and resource allocation within these entities, thereby reducing the administrative and reporting obligations for ADIs without any stated exclusions or thresholds in the determination. This legislative instrument operates within the Commonwealth jurisdiction and aligns with human rights as assessed by APRA, which confirms that the revocation does not engage any rights or freedoms recognised in the international instruments under the Human Rights (Parliamentary Scrutiny) Act 2011.
Key Provisions
The Financial Sector (Collection of Data) (reporting standard) determination No. 14 of 2017, made under sections 13 and 15 of the Financial Sector (Collection of Data) Act 2001, revokes the previously established Reporting Standard ARS 321.0 Statement of Financial Position (Offshore Operations). This revocation is effective upon the instrument's registration on the Federal Register of Legislation. The primary objective of this determination is to eliminate the requirement for authorised deposit-taking institutions (ADIs) to report certain financial data on their offshore operations, which was initially intended to support the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS) in their data collection efforts.
The determination imposes a clear obligation on ADIs to no longer comply with the requirements of ARS 321.0. This includes ceasing the collection and reporting of the specified financial information regarding their offshore operations. The revocation is a direct result of the reassessment of data priorities by the RBA and the ABS, leading to the conclusion that the data previously collected under ARS 321.0 is no longer necessary. This change is expected to alleviate some of the reporting burdens on ADIs, allowing them to redirect resources and focus on other critical areas.
There are no specified offences, penalties, or civil/criminal consequences outlined in the determination for non-compliance with the now-revoked ARS 321.0. However, the revocation itself serves as a directive for ADIs to align their reporting practices with the current data requirements set by the RBA and the ABS. APRA's decision to revoke this reporting standard was based on extensive consultation with industry stakeholders and no objections were raised during the consultation period. Additionally, a Regulation Impact Statement was deemed unnecessary, as the changes are expected to have minimal impact on the reporting practices of ADIs.
The compatibility of the determination with human rights was assessed under the Human Rights (Parliamentary Scrutiny) Act 2011. APRA has concluded that the revocation of ARS 321.0 does not infringe upon any of the rights or freedoms recognised in the international human rights instruments. Therefore, the determination is considered compatible with human rights, as it does not present any human rights issues. This assessment is detailed in the Statement of Compatibility provided in Attachment A to the Explanatory Statement.