Financial Sector (Collection of Data) (reporting standard) determination No.
56 of 2008
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.
Financial Sector (Collection of Data) (reporting standard) determination No. 56 of 2008 determines Reporting Standard FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers (the Standard) which comes into force on the later of 1 October 2008 and the date of its registration on the Federal Register of Legislative Instruments.
- Background
The First Home Saver Accounts Act 2008 (FHSA Act) commenced on 26 June 2008 and provides for First Home Saver Accounts (FHSAs) to be opened or issued on or after 1 October 2008.
The FHSA Act allows for prudentially regulated institutions that are public offer and extended public offer licensees (collectively referred to as RSE licensees), life insurance companies, and authorised deposit-taking institutions to provide FHSAs. APRA is tasked with ensuring that a robust prudential reporting framework is in place for the effective regulation of FHSA providers.
The 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 will relate to the reporting period ending 31 December 2008.
2. Purpose and operation of the instrument
The 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.
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.
Overview
The Financial Sector (Collection of Data) (reporting standard) determination No. 56 of 2008 was enacted under the Financial Sector (Collection of Data) Act 2001 by the Australian Prudential Regulation Authority (APRA). This legislation was introduced to address the need for a comprehensive prudential reporting framework for the effective regulation of First Home Saver Accounts (FHSAs) providers. The policy objective was to ensure that prudentially regulated institutions and other entities could effectively provide FHSAs by complying with specific reporting requirements that would facilitate supervision and compliance monitoring by APRA. This determination established Reporting Standard FRS 100.0 Reporting Requirements for First Home Saver Accounts Providers, which was designed to collect necessary financial and accounting data from FHSA providers, ensuring that APRA and other regulatory bodies could perform their oversight functions efficiently.
Scope and Application
The Financial Sector (Collection of Data) (reporting standard) determination No. 56 of 2008, under the Financial Sector (Collection of Data) Act 2001, applies to prudentially regulated institutions that are public offer and extended public offer licensees, life insurance companies, and authorised deposit-taking institutions that provide First Home Saver Accounts (FHSAs). The Act mandates these entities to comply with specific reporting standards designed to collect financial and accounting data related to the business or activities of these entities, particularly concerning their provision of FHSAs as stipulated by the First Home Saver Accounts Act 2008. The reporting requirements are to be implemented from the later of 1 October 2008 or the date of registration on the Federal Register of Legislative Instruments. The collected data is intended for use by the Australian Prudential Regulation Authority (APRA) in its prudential supervision and compliance assessment, and may also be 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. The reporting standard was developed after consultation with industry stakeholders in June and July 2008, and incorporates feedback to address relevant issues.
Key Provisions
The Financial Sector (Collection of Data) (Reporting Standard) Determination No. 56 of 2008 sets out the reporting standards under which financial sector entities, specifically First Home Saver Accounts (FHSAs) providers, must comply. This determination is made under the Financial Sector (Collection of Data) Act 2001, specifically paragraph 13(1)(a), which empowers the Australian Prudential Regulation Authority (APRA) to determine such reporting standards (section 1). The determination encompasses the reporting requirements for FHSA providers, including a detailed form (Form FRF 100.0) that must be completed by these providers and a set of technical instructions to assist in the completion of this form (section 2). The Standard, which came into force on the later of 1 October 2008 and the date of its registration on the Federal Register of Legislative Instruments, is intended to ensure that FHSA providers submit necessary financial and operational data to APRA for prudential supervision purposes (section 1).
The obligations imposed on FHSA providers by this determination include the submission of comprehensive and accurate data to APRA on a quarterly basis. This data encompasses various aspects of the FHSA business, including account balances, contributions, withdrawals, and other relevant metrics. FHSA providers must complete Form FRF 100.0 in accordance with the detailed technical instructions provided. These obligations are critical for APRA to perform its role in prudential supervision, ensuring that FHSA providers comply with relevant prudential standards (section 2). Additionally, the data collected may be 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 for broader economic and regulatory purposes.
Failure to comply with the reporting requirements outlined in this determination can lead to significant consequences. While the determination itself does not explicitly detail specific penalties or offences, non-compliance with APRA's reporting standards generally falls under the broader regulatory framework of the Financial Sector (Collection of Data) Act 2001. Under this Act, breaches can result in civil or criminal penalties, which may include fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach, but they underscore the importance of adhering to the reporting requirements to avoid legal repercussions. Additionally, persistent non-compliance could lead to regulatory actions against the FHSA provider, potentially impacting their ability to operate within the financial sector.