Financial Sector (Collection of Data) (reporting standard) determination No. 57 of 2023
EXPLANATORY STATEMENT
Prepared by the Australian Prudential Regulation Authority (APRA)
Financial Sector (Collection of Data) Act 2001, sections 13 and 15
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 31 March 2023, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 57 of 2023 (the instrument) which revokes Reporting Standard ARS 118.1 Other Off-balance Sheet Exposures (ARS 118.1) made under Financial Sector (Collection of Data) (reporting standard) determination No. 24 of 2019.
The instrument takes effect upon registration on the Federal Register of Legislation.
- Background
The purpose of ARS 118.1 was to collect financial data on specified off-balance sheet exposures authorised deposit-taking institutions (ADIs). As the data collected under ARS 118.1 will now be collected under other ADI reporting standards, the reporting standard can now be revoked.
2. Purpose and operation of the instrument
The purpose of the instrument is to revoke ARS 118.1 as the data collected under this reporting standard is now collected under other ADI reporting standards. This will reduce duplication of reporting for ADIs.
3. Consultation
APRA undertook public consultation on proposed updates to ADI capital reporting standards from April 2022 to October 2022 as part of the consultation on updates to the ADI capital reporting and prudential framework.[1] Submissions were received from both reporting entities and industry bodies, which suggested APRA discontinue ARS 118.1 as the data collected by ARS 118.1 would be replaced by the new ADI capital reporting standards. APRA confirmed its intention to revoke ARS 118.1 in its August 2022 letter Credit risk reporting – Response to submissions.[2]
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) (reporting standard) determination No. 57 of 2023
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 Instrument
The purpose of this instrument is to revoke Reporting Standard ARS 118.1 Other Off-balance Sheet Exposures made under Financial Sector (Collection of Data) (reporting standard) determination No. 24 of 2019.
Human rights implications
APRA has assessed the 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
The Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
[1] Further details on APRA’s consultation can be found at: https://www.apra.gov.au/revisions-to-capital-framework-for-authorised-deposit-taking-institutions
[2] APRA’s letter is available at: https://www.apra.gov.au/credit-risk-reporting-%E2%80%93-response-to-submissons