Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2015
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, section 13
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 10 November 2015, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2015 (the instrument) which revokes Reporting Standard SRS 534.0 Derivative Financial Instruments made under Financial Sector (Collection of Data) (reporting standard) determination No. 83 of 2013 (SRS 534.0).
The instrument commences on registration on the Federal Register of Legislative Instruments.
- Background
In 2013, as part of the new superannuation reporting requirements, APRA introduced SRS 534.0 for RSE licensees that invest in directly held derivatives. SRS 534.0 collects information on RSE licensee directly held derivatives, which includes data on exchange traded and over-the-counter derivatives.
2. Purpose and operation of the instrument
Since SRS 534.0 was released in 2013, it has come to APRA’s attention that a number of the items required by SRS 534.0 may not be able to be reported as originally intended. Further, industry reported that SRS 534.0 in its current form will require RSE licensees and third-party service providers to change their systems and processes to collect and report data to APRA, and that the cost of these changes is likely to be disproportionately high.
On 28 April 2015, APRA released a revised SRS 534.0 for consultation with responses due on 19 June 2015. The revised version of SRS 534.0 was proposed to apply for reporting periods ending on or after 1 January 2016. However, it is now intended that the revised version will apply for reporting periods ending on or after 1 July 2016.
As the new version of SRS 534.0 will apply on 1 July 2016, APRA now revokes SRS 534.0 which was made under determination No. 83 of 2013 for reporting periods ending on or after 1 July 2014.
3. Consultation
The revocation is a result of consultation for a proposed new version of the SRS 534.0 which will replace the revoked version.
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) determination No. 29 of 2015
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 Instruments
This legislative instrument revokes Reporting Standard SRS 534.0 Derivative Financial Instruments made under Financial Sector (Collection of Data) (reporting standard) determination No. 83 of 2013.
Human rights implications
APRA has assessed this Legislative 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
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.