Financial Sector (Collection of Data) (reporting standard) determination No. 35 of 2016 - Revocation of reporting standards applying to Discretionary Mutual Funds

Administered by Department of the Treasury

Legislation au F2016L01702 Not in force Legislative Instrument

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Financial Sector (Collection of Data) determination No. 35 of 2016

EXPLANATORY STATEMENT

Prepared by the Australian Prudential Regulation Authority (APRA)

Financial Sector (Collection of Data) Act 2001 (the Act), paragraph 13(1)(a)

Acts Interpretation Act 1901, subsection 33(3)

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 26 October 2016, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 35 of 2016 (the instrument) which revokes the following instruments:

(1)            Financial Sector (Collection of Data) (reporting standard) determination No. 32 of 2007, including Reporting Standard DRS 1.0 – Notification made under that Determination;

(2)            Financial Sector (Collection of Data) (reporting standard) determination No. 33 of 2007, including Reporting Standard DRS 100.0 – Insurance and Sundry Information made under that Determination;

(3)            Financial Sector (Collection of Data) (reporting standard) determination No. 34 of 2007, including Reporting Standard DRS 210.0 – Outstanding Claims Liabilities made under that Determination;

(4)            Financial Sector (Collection of Data) (reporting standard) determination No. 35 of 2007, including Reporting Standard DRS 300.0 – Statement of Financial Position made under that Determination;

(5)            Financial Sector (Collection of Data) (reporting standard) determination No. 36 of 2007, including Reporting Standard DRS 310.0 – Statement of Financial Performance made under that Determination;

(6)            Financial Sector (Collection of Data) (reporting standard) determination No. 37 of 2007, including Reporting Standard DRS 310.1 – Gross Earned Contribution Revenue & Insurance Expense made under that Determination;

(7)            Financial Sector (Collection of Data) (reporting standard) determination No. 38 of 2007, including Reporting Standard DRS 310.2 – Claims Expense and Insurance Recoveries made under that Determination;

(8)            Financial Sector (Collection of Data) (reporting standard) determination No. 39 of 2007, including Reporting Standard DRS 310.3 – Insurance by Class made under that Determination;

(9)            Financial Sector (Collection of Data) (reporting standard) determination No. 40 of 2007, including Reporting Standard DRS 310.4 – Other Information made under that Determination; and

(10)        Financial Sector (Collection of Data) (reporting standard) determination No. 11 of 2011, including Reporting Standard DRS 1.1 – Notification by AFS Licence holders made under that Determination.

The instrument commences on the date it is registered on the Federal Register of Legislation.

  1. Background

The reporting standards for the collection of data from Discretionary Mutual Funds (DMFs) were made in 2007. APRA began collecting data from DMFs in 2008, with information from the collection to be used to allow the Government to better understand the use and operation of DMFs within the Australian market.

In 2015, APRA assessed its non-prudential data collection and determined that APRA had minimal prudential use for the industry-wide data provided by DMFs. Consistent with APRA’s commitment to look for opportunities to reduce compliance costs for business and the community, APRA considers that the benefit obtained from the use of the data collection no longer outweighs the reporting costs to DMFs. Consequently, APRA is revoking all the relevant reporting standards and their associated reporting forms:

  • Reporting Standard DRS 1.0 Notification;
  • Reporting Standard DRS 1.1 – Notification by AFS Licence holders;
  • Reporting Standard DRS 100.0 Insurance and Sundry Information;
  • Reporting Standard DRS 210.0 Outstanding Claims Liabilities;
  • Reporting Standard DRS 300.0 Statement of Financial Position;
  • Reporting Standard DRS 310.0 Statement of Financial Performance;
  • Reporting Standard DRS 310.1 Gross Earned Contribution Revenue and Insurance Expense;
  • Reporting Standard DRS 310.2 Claims Expense and Insurance Recoveries;
  • Reporting Standard DRS 310.3 Insurance by Class; and
  • Reporting Standard DRS 310.4 Other Information.

2.                   Purpose and operation of the instrument

 

The purpose of the instrument is to revoke the reporting standard listed above. The data collected under these reporting standards is no longer required, and the revocation of the reporting standards will reduce the reporting burden of DMFs. 

 


3.                   Consultation

 

APRA undertook a four week consultation on its proposed revocation of the reporting standards between 2 September 2016 and 30 September 2016. APRA received three submissions from the DMFs.

 

The consultation provided clear communication to the industry on APRA’s proposal to cease collection and APRA’s position on the benefits obtained verses the cost involved in collecting this information.  Of the three submissions received, two submissions acknowledged APRA’s proposal and supported the revocation of the above listed reporting standards.

 

APRA has also consulted with Treasury on the proposed revocation of the reporting standards and has no objections to the proposal.

 

4.      Regulatory Impact Statement

 

APRA has consulted with the Office of Best Practice Regulation (OBPR) and the OBPR has confirmed that a Regulatory Impact Statement (RIS) is not required.  

 

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

Human Rights (Parliamentary Scrutiny) Act 2011

Financial Sector (Collection of Data) (reporting standard) determinations No. 35 of 2016

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 instruments

This legislative instrument revokes the reporting standards that apply to Discretionary Mutual Funds (DMFs) for the purposes of collecting data.

 

Human rights implications

APRA has assessed this instrument against the international instruments listed in section 3 of the HRPS Act and has determined 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.

 

The instrument removes particular reporting obligations for DMFs, and does not have any direct or indirect effects on the rights of individual persons.  Consequently, the instrument 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, this legislative 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) determination No. 35 of 2016 was enacted by the Australian Prudential Regulation Authority (APRA) under the authority granted by the Financial Sector (Collection of Data) Act 2001. This instrument was introduced to address the issue of reducing unnecessary compliance costs for Discretionary Mutual Funds (DMFs) while ensuring that the benefits of the data collected continue to outweigh these costs. APRA found that the prudential benefits of collecting certain industry-wide data from DMFs were minimal, leading to the decision to revoke the relevant reporting standards and associated reporting forms, thereby easing the reporting burden on DMFs. The determination revokes ten previously established reporting standards for DMFs, which were initially implemented in 2007 to assist the government in better understanding the operation of DMFs within the Australian market. Following a review and consultation process in 2016, APRA concluded that the benefits obtained from the data collection no longer justified the associated reporting costs. The revocation of these standards is expected to reduce compliance costs for DMFs without negatively impacting the overall regulatory environment or human rights considerations, as confirmed by APRA's compatibility statement under the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The Financial Sector (Collection of Data) (reporting standard) determination No. 35 of 2016, made by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, revokes previously established reporting standards for Discretionary Mutual Funds (DMFs). The determination specifically applies to DMFs, which are entities within the financial sector required to collect and report financial and accounting data and other business-related information. This revocation aims to reduce the reporting burden on these entities. The determination revokes ten prior reporting standards, each pertaining to various aspects of DMF operations such as notifications, insurance information, financial positions, and performance metrics. The revocation of these standards eliminates the obligation for DMFs to submit data under these reporting requirements, which were initially established to help the government understand the use and operation of DMFs within the Australian market. The revocation reflects APRA's assessment that the benefits of the data collection no longer outweigh the reporting costs to DMFs. APRA consulted with the industry and Treasury on the proposed revocation, receiving support from the industry, and confirmed compatibility with human rights as the instrument does not affect any individual rights.

Key Provisions

The Financial Sector (Collection of Data) Determination No. 35 of 2016, issued by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001, revokes a series of previously established reporting standards for Discretionary Mutual Funds (DMFs). These standards, which were initially created in 2007, had mandated the collection of specific financial and accounting data from DMFs to assist the government in understanding the operation of DMFs within the Australian market (Sections 13(1)(a) and 33(3) of the Acts Interpretation Act 1901). The determinations being revoked include standards such as Notification, Insurance and Sundry Information, Outstanding Claims Liabilities, Statement of Financial Position, Statement of Financial Performance, Gross Earned Contribution Revenue and Insurance Expense, Claims Expense and Insurance Recoveries, Insurance by Class, and Other Information. APRA's revocation of these reporting standards aims to alleviate the administrative burden on DMFs, as the regulator found that the benefits derived from the collected data no longer justify the costs of data collection. This decision aligns with APRA's broader objective of reducing compliance costs for businesses. The determinations, once revoked, will no longer require DMFs to submit the specified financial and accounting data to APRA. APRA undertook a four-week consultation period from 2 September to 30 September 2016, during which it received three submissions from DMFs, two of which supported the revocation. APRA also consulted with Treasury, which did not object to the proposal. Failure to comply with the revoked reporting standards, which are now no longer in effect, does not result in specific penalties or consequences as the standards themselves have been revoked. However, any existing legal obligations under the repealed standards cease to apply once the revocation takes effect. It is important for DMFs to ensure they are aware of and compliant with any remaining reporting requirements under the Financial Sector (Collection of Data) Act 2001 and other applicable legislation. APRA’s decision to revoke these standards is deemed compatible with human rights as it does not impose any new burdens or restrictions on DMFs and does not affect the rights of individuals as assessed against the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

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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.