Financial Sector (Collection of Data) (reporting standard) determination No. 29 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. 29 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. 1 of 2009 (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. 29 of 2009 be effective from the later of 31 December 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 related to the reporting period ended 31 December 2008. Since the first lodgement, APRA identified an omission on the form which led to a gap in information being collected. Specifically, the form did not collect data on contributions made to accounts that existed at the start of the financial year during the reporting period.
This has now been rectified by amending the FRF 100.0 through the addition of a new field ‘2.1.8 other’ and the set of detailed technical instructions regarding completion of FRF 100.0.
As at 30 September 2009, FRF 100.0 was completed by 18 Authorised Deposit-taking Institutions (ADIs). Another four ADIs and one Registrable Superannuation Entity completed a nil return. Given the nature of the amendment, and the number of reporting entities, the impact 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 December 2009. The Old Standard applies in respect of the reporting period ending 30 September 2009.
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. 29 of 2009 was enacted under the Financial Sector (Collection of Data) Act 2001, administered by the Australian Prudential Regulation Authority (APRA). This determination was introduced to address a gap in the collection of data concerning contributions made to First Home Saver Accounts (FHSA) that existed at the start of the financial year during the reporting period. The omission in the previous reporting standard, FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers, was identified and subsequently rectified by the introduction of the New Standard, which includes a revised form, FRF 100.0, and detailed technical instructions for completion. This amendment ensures the completeness and accuracy of data submitted to APRA, enhancing the efficacy of prudential supervision and regulatory compliance within the financial sector.
Scope and Application
The Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2009 is a legislative instrument made under the Financial Sector (Collection of Data) Act 2001 by the Australian Prudential Regulation Authority (APRA). This determination applies to financial sector entities involved in the provision of First Home Saver Accounts (FHSA), specifically Authorised Deposit-taking Institutions (ADIs) and Registrable Superannuation Entities. The determination mandates these entities to comply with the specified reporting standards concerning the provision of financial and accounting data, as well as other relevant information about their business or activities. The New Standard, established under this determination, is effective from the later of 31 December 2009 or the date of its registration on the Federal Register of Legislative Instruments. This determination rectifies a previous omission in the Old Standard, ensuring that data on contributions made to accounts existing at the start of the financial year during the reporting period is now collected, thus enhancing the comprehensiveness of the data gathered for prudential supervision purposes.
Key Provisions
The Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2009, made under the Financial Sector (Collection of Data) Act 2001, introduces a new reporting standard for entities that provide First Home Saver Accounts (FHSA). This determination revokes the previous reporting standard, FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers (the Old Standard), made under the same Act, and establishes a new reporting standard (the New Standard) that FHSA providers must follow for reporting periods ending on or after 31 December 2009. The New Standard includes a revised form, FRF 100.0, which must be completed by FHSA providers to submit their quarterly data to the Australian Prudential Regulation Authority (APRA). The key change in the New Standard is the addition of a new field, '2.1.8 other,' to the form FRF 100.0, which rectifies a previous omission by collecting data on contributions made to accounts that existed at the start of the financial year during the reporting period.
The obligations imposed by this determination on FHSA providers are primarily centred around the accurate and timely completion and submission of the form FRF 100.0. The providers must ensure that they include all necessary data, including the newly added field '2.1.8 other,' and adhere to the detailed technical instructions provided. The form must be submitted quarterly, with the first submission for the reporting period ended 31 December 2008. The data collected is crucial for APRA’s prudential supervision activities, including compliance assessments, and is also shared with other regulatory bodies such as the Reserve Bank of Australia, the Australian Bureau of Statistics, the Australian Securities and Investments Commission, and the Australian Tax Office.
There are no explicit offences, penalties, or civil/criminal consequences outlined in the determination for non-compliance with the new reporting requirements. However, the importance of the data collected cannot be understated, and any failure to comply with the reporting standards could potentially lead to regulatory scrutiny or further investigation by APRA. Given that the primary purpose of the determination is to ensure comprehensive data collection for effective supervision, non-compliance could be seen as undermining the regulatory oversight and could result in APRA taking appropriate action to enforce compliance. The impact of such actions could range from formal warnings to more stringent regulatory measures, depending on the nature and extent of the non-compliance.