Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2024
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 10 July 2024, APRA made the Financial Sector (Collection of Data) (reporting standard) determination No. 8 of 2024 which revokes Reporting Standard ARS 332.0 Statement of Economic Activity (ARS 332.0) made under Financial Sector (Collection of Data) (reporting standard) determination No. 30 of 2018 (the reporting standard).
The instrument commences the day after it is registered on the Federal Register of Legislation.
1. Background
In 2008, APRA introduced new reporting requirements for authorised deposit-taking institutions (ADIs) as part of its implementation of a revised prudential framework based on the Basel Committee’s measures known as Basel II in Australia. The existing and previous versions of ARS 332.0 formed part of these reporting requirements. The Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS) are key users of this data.
Following the introduction of the modernised Economic and Financial Statistics (EFS) data collection in 2019, the data is no longer required by the ABS and RBA. The data collection ceased in March 2020.
2. Purpose and operation of the Legislative Instrument
The purpose of the Legislative Instrument is to revoke the reporting standard. It is no longer required to collect the information under the reporting standard.
Operation of the instrument
The first paragraph of the instrument identifies the source of the power that is being exercised by the delegate and is the operative paragraph that revokes the reporting standard.
The second paragraph provides that the revoked reporting standard will cease to apply on the day after the instrument is registered on the Federal Register of Legislation.
The third paragraph provides for the instrument to commence on the day after it is registered on the Federal Register of Legislation. This is the day that would apply under subsection 12(1) of the Legislation Act 2003 (Cth), if no commencement provision were made.
3. Documents incorporated by reference
Under paragraph 14(1)(a) of the Legislation Act 2003, the instrument incorporates by reference as in force from time to time:
- Legislation Act 2003 (Cth).
All documents incorporated by reference in the instrument are available on the Federal Register of Legislation at www.legislation.gov.au.
4. Consultation
APRA conducted consultation for this instrument. In the response letter Response to submissions: Proposed changes to modernised Economic and Financial Statistics (EFS) reporting standards and guidance[1] to the consultation on the EFS collection, APRA informed affected ADIs that existing reporting requirements were expected to continue until the new EFS reporting standards take effect. The reporting requirement ceased in March 2020.
The key users of the ARS 332.0 data, the ABS and RBA, have agreed that ARS 332.0 is no longer needed.
APRA is satisfied the consultation was appropriate and reasonably practicable.
5. Regulation Impact Statement
The Office of Impact Analysis has advised that a detailed Impact Analysis is not required for the revocation of the reporting standard.
6. 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. 8 of 2024
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 Instrument
The purpose of the Legislative Instrument is to revoke the following instrument:
Reporting Standard ARS 332.0 Statement of Economic Activity made under Financial Sector (Collection of Data) (reporting standard) determination No. 30 of 2018.
Human rights implications
APRA has assessed the 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 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.
[1] https://www.apra.gov.au/response-to-submissions-proposed-changes-to-modernised-economic-and-financial-statistics-efs.