Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2015 - SRS 534.0 - Derivative Financial Instruments

Administered by Department of the Treasury

Legislation au F2015L01790 Not in force Legislative Instrument

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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.

  1.    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.

 

 

 

 

 

 

Overview

The Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2015, made under the Financial Sector (Collection of Data) Act 2001, was introduced by the Australian Prudential Regulation Authority (APRA) to address issues arising from the previous reporting standard SRS 534.0. The 2013 standard, SRS 534.0, aimed to collect data on directly held derivatives for Responsible Superannuation Entity (RSE) licensees. However, it was found that some required data might not be reportable as intended, and the costs associated with implementing the changes for RSE licensees and third-party service providers were deemed excessively high. Consequently, APRA revoked SRS 534.0 and introduced a revised version, set to apply from 1 July 2016, following consultation and feedback from the industry. This legislative instrument seeks to streamline and improve the reporting process while ensuring that the new standards are more practical and less burdensome for the entities involved.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2015 applies to financial sector entities regulated under the Financial Sector (Collection of Data) Act 2001. Specifically, this determination revokes the previously established Reporting Standard SRS 534.0 Derivative Financial Instruments which was made applicable to Responsible Entities (RSE) licensees that invest in directly held derivatives. The revocation is effective for reporting periods ending on or after 1 July 2014, with the new version of the reporting standard intended to apply from 1 July 2016. This legislative instrument is enacted under the Commonwealth of Australia and operates within the regulatory framework established by the Financial Sector (Collection of Data) Act 2001, which empowers the Australian Prudential Regulation Authority (APRA) to set reporting standards for financial entities. There are no stated exclusions or exemptions in this determination, but it is noted that the instrument is compatible with human rights as assessed by APRA.

Key Provisions

The Financial Sector (Collection of Data) (reporting standard) determination No. 29 of 2015 primarily focuses on the revocation of a previously established reporting standard, specifically Reporting Standard SRS 534.0 Derivative Financial Instruments (sections 2 and 3). This revocation was necessary due to the unfeasibility of certain data collection requirements as originally intended and the anticipated high costs associated with the necessary system and process adjustments for regulated entities and third-party service providers. The instrument revokes SRS 534.0, which was issued under Financial Sector (Collection of Data) (reporting standard) determination No. 83 of 2013, effective for reporting periods ending on or after 1 July 2014. The determination takes effect upon its registration on the Federal Register of Legislative Instruments. The obligations imposed by this determination are primarily on the financial sector entities, specifically Registered Superannuation Entities (RSE) licensees, who must now comply with the new reporting standards once they are established. These entities are required to ensure that their data collection systems and processes align with the revised standards when they are implemented. The entities must also be prepared to provide the data as specified in the new reporting standards, which will apply from reporting periods ending on or after 1 July 2016. Additionally, third-party service providers who assist these entities in data collection must also adapt their services to comply with the new standards. In terms of consequences for non-compliance, the determination does not explicitly outline specific offences, penalties, or consequences for breach within the provided text. However, under the Financial Sector (Collection of Data) Act 2001, breaches of reporting standards can result in civil and criminal penalties. Civil penalties can include fines up to $210,000 for individuals and $1.05 million for corporations, while criminal penalties can include fines up to $525,000 for individuals and $2.625 million for corporations, as well as imprisonment terms for individuals. These penalties reflect the seriousness with which the Australian Prudential Regulation Authority (APRA) treats compliance with financial reporting standards.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.