Financial Sector (Collection of Data) (reporting standard) determinations No. 17 to 26 of 2014
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 9 May 2014 APRA made the following determinations (the instruments):
(1) Financial Sector (Collection of Data) (reporting standard) determination No. 17 of 2014 which:
(i) revokes Reporting Standard SRS 160.1 Defined Benefit Flows made under Financial Sector (Collection of Data) (reporting standard) determination No. 67 of 2013; and
(ii) determines Reporting Standard SRS 160.1 Defined Benefit Flows (SRS 160.1);
(2) Financial Sector (Collection of Data) (reporting standard) determination No. 18 of 2014 which:
(i) revokes Reporting Standard SRS 320.0 Statement of Financial Position made under Financial Sector (Collection of Data) (reporting standard) determination No. 5 of 2014; and
(ii) determines Reporting Standard SRS 320.0 Statement of Financial Position (SRS 320.0);
(3) Financial Sector (Collection of Data) (reporting standard) determination No. 19 of 2014 which:
(i) revokes Reporting Standard SRS 330.0 Statement of Financial Performance made under Financial Sector (Collection of Data) (reporting standard) determination No. 6 of 2014; and
(ii) determines Reporting Standard SRS 330.0 Statement of Financial Performance (SRS 330.0);
(4) Financial Sector (Collection of Data) (reporting standard) determination No. 20 of 2014 which:
(i) revokes Reporting Standard SRS 410.0 Accrued Default Amount made under Financial Sector (Collection of Data) (reporting standard) determination No. 76 of 2013; and
(ii) determines Reporting Standard SRS 410.0 Accrued Default Amount (SRS 410.0);
(5) Financial Sector (Collection of Data) (reporting standard) determination No. 21 of 2014 which:
(i) revokes Reporting Standard SRS 530.0 Investments made under Financial Sector (Collection of Data) (reporting standard) determination No. 78 of 2013; and
(ii) determines Reporting Standard SRS 530.0 Investments (SRS 530.0);
(6) Financial Sector (Collection of Data) (reporting standard) determination No. 22 of 2014 which:
(i) revokes Reporting Standard SRS 530.1 Investments and Investment Flows made under Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2014; and
(ii) determines Reporting Standard SRS 530.1 Investments and Investment Flows (SRS 530.1);
(7) Financial Sector (Collection of Data) (reporting standard) determination No. 23 of 2014 which:
(i) revokes Reporting Standard SRS 531.0 Investment Flows made under Financial Sector (Collection of Data) (reporting standard) determination No. 80 of 2013; and
(ii) determines Reporting Standard SRS 531.0 Investment Flows (SRS 531.0);
(8) Financial Sector (Collection of Data) (reporting standard) determination No. 24 of 2014 which:
(i) revokes Reporting Standard SRS 532.0 Investment Exposure Concentrations made under Financial Sector (Collection of Data) (reporting standard) determination No. 81 of 2013; and
(ii) determines Reporting Standard SRS 532.0 Investment Exposure Concentrations (SRS 532.0);
(9) Financial Sector (Collection of Data) (reporting standard) determination No. 25 of 2014 which:
(i) revokes Reporting Standard SRS 533.0 Asset Allocation made under Financial Sector (Collection of Data) (reporting standard) determination No. 9 of 2013; and
(ii) determines Reporting Standard SRS 533.0 Asset Allocation (SRS 533.0); and
(10) Financial Sector (Collection of Data) (reporting standard) determination No. 26 of 2014 which:
(i) revokes Reporting Standard SRS 702.0 Investment Performance made under Financial Sector (Collection of Data) (reporting standard) determination No. 10 of 2013; and
(ii) determines Reporting Standard SRS 702.0 Investment Performance (SRS 702.0).
Instruments (2), (3), (4), (6), (9) and (10) are stated to commence on 1 April 2014. Instruments (1), (5), (7), and (8) commence on 1 July 2014.
- Background
APRA is empowered to make reporting standards under FSCODA, which require regulated institutions, including RSE licensees, to submit specified data through various reporting forms. Data from these forms are used internally to assist APRA’s supervisory functions and by other agencies such as the Australian Bureau of Statistics and the Australian Securities and Investments Commission. APRA also collates and publishes statistical information and analysis using data from these reporting forms.
In 2012, legislative reforms[1] granted APRA the power to make prudential standards for the superannuation industry, extended its existing powers to collect data under FSCODA and imposed additional publication obligations on APRA. These measures were introduced in response to recommendations contained in the June 2010 report of the Review into the Governance, Efficiency, Structure and Operation of Australia’s Superannuation System (Super System Review).
In 2013, APRA released a suite of 37 final reporting standards applying to the superannuation industry.
2. Purpose and operation of the instrument
The purpose of making the instruments is to make changes to some reporting due dates for a transitional period after considering the feedback from industry. The changes to reporting dates will provide additional time for industry to adapt to the new data collection requirements and enable further consultation on some aspects of the reporting requirements. Consequently, while certain of the Instruments take effect on 1 April 2014, their operation prior to registration on the Federal Register of Legislative Instruments does not contravene subsection 12(2) of the Legislative Instruments Act 2003 as the purpose of the Instruments is to effectively defer compliance with new requirements that would have otherwise applied to RSE licensees from that date. Entities were made aware of the intended change to the reporting period due dates for a transitional period in a letter to the industry dated 21 March 2014 so as to permit them to continue to report under existing arrangements.
3. Consultation
In 2013, APRA released the final reporting standards for the superannuation industry. Since the release of the final requirements, APRA received further feedback from industry and other stakeholders on a range of implementation issues related to the new reporting requirements.
In a letter to all RSE licensees dated 21 March 2014, APRA decided to defer the implementation dates for some parts the reporting framework and make changes to some reporting due dates for a transitional period after considering the feedback from industry. APRA does not consider that further consultation on these changes is necessary as the changes have already been communicated to industry via a letter to the industry.
The ABS also indicated it will postpone the implementation of this additional superannuation data collection until reporting periods commencing on or after 1 July 2015. Consultation on the proposed additional ABS data collection is expected to commence later in 2014. The revised implementation timeframe will allow RSE licensees further time to make any changes required to enable their reporting of the additional data.
4. Regulation Impact Statement
The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required for these legislative instruments.
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) determinations Nos. 17 to 26 of 2014
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instrument listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).
Overview of the Legislative Instrument
The purpose of making this legislative instrument is to revoke existing reporting standards and remake reporting standards to make changes to some reporting due dates for a transitional period after considering the feedback from industry. The changes to reporting dates will provide additional time for industry to adapt to the new data collection requirements and enable further consultation on some aspects of the reporting requirements.
Human rights implications
APRA has assessed the instrument against the international instruments listed in section 3 of the HRPS Act and determined no Article is conceivably potentially of relevance to the instrument.
The information collected as a result of the continued operation of the reporting standards will be about the profile and structure of each RSE licensee’s business operations. This information ultimately supports APRA achieving its mission of ensuring that, under all reasonable circumstances, financial promises made by the institutions APRA supervises are met within a stable, efficient and competitive financial system.
APRA does not publish the personal information which it collects. Information provided to APRA under reporting standards is protected information for the purposes of section 56 of the Australian Prudential Regulation Authority Act 1998 (APRA Act) and cannot be disclosed except under a limited range of circumstances provided for under that section. While APRA does publish some protected information gathered under reporting standards, APRA reviews all releases of data received under reporting standards to ensure that no information pertaining to an individual person can be deduced from the data.
Conclusion
Financial Sector (Collection of Data) (reporting standard) determination Nos. 17 to 26 are compatible with human rights because the determination does not raise human rights issues.
[1] The Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Act 2012 and the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012. These complemented the introduction of MySuper (a diversified superannuation product for contributions where the member has not made a choice of fund or product) in the Superannuation Legislation Amendment (MySuper Core Provisions) Act 2012. The Government has also introduced the Superannuation Legislation Amendment (Service Providers and Other Governance Measures) Bill 2012.