Australian Prudential Regulation Authority
Australian Prudential Regulation Authority Act 1998
VARIATION OF
INSTRUMENT FIXING CHARGES TO BE PAID TO APRA
FOR APPLICATIONS FOR AUTHORISATION AS AN
ADI, GENERAL INSURER OR LIFE COMPANY
I, Jim Flaye, a delegate of the Australian Prudential Regulation Authority
under paragraph 51(1)(b) of the Australian Prudential Regulation Authority Act 1998 (the APRA Act) and subsection 33(3) of the Acts Interpretation Act 1901
VARY the instrument entitled Instrument Fixing Charges to be Paid to APRA for Applications for Authorisation as an ADI, General Insurer or Life Company, which is dated 3 June 2003 and which was made under paragraph 51(1)(b) of the APRA Act (the charging instrument)
by adding the following row to the table in the Schedule to the charging instrument, after item 3 of the table:
3A | Applications for authorisation as an ADI under section 9 of the Banking Act 1959 – in any case that is not covered by item 1, 2 or 3. | $22,000 |
Dated 14 July 2003
[signed]
………………………………..
J Flaye
Chief Financial Officer
Overview
The Australian Prudential Regulation Authority (APRA) Act 1998 was enacted by the Parliament of Australia to establish a regulatory body responsible for prudential supervision of financial institutions, including authorised deposit-taking institutions (ADIs), general insurers, and life companies. The Act was introduced to address the need for a unified regulatory framework to ensure the financial stability of the Australian financial system. As part of its functions, APRA is authorised to set and collect fees for processing applications for authorisation. In exercising this power, APRA has made variations to the Instrument Fixing Charges to be Paid to APRA for Applications for Authorisation as an ADI, General Insurer or Life Company. The policy objective behind these variations is to ensure that the fees collected are reflective of the cost of processing applications and maintaining the regulatory oversight of financial institutions, thereby supporting the financial integrity and stability of the industry.
Scope and Application
The Australian Prudential Regulation Authority Act 1998, as amended by the legislative instrument F2006B01151, pertains specifically to the charges payable to the Australian Prudential Regulation Authority (APRA) for applications related to authorisation as an Authorised Deposit-taking Institution (ADI), a general insurer, or a life insurance company. This Act applies to entities or individuals seeking authorisation from APRA within the scope of these financial sectors, encompassing a broad range of financial institutions, insurance companies, and related entities. The geographic reach of the Act is national, applying across Australia and not limited to specific states or territories. Notably, the Act extends its application through subordinate instruments, allowing for adjustments and updates to the charges and other regulatory aspects as deemed necessary by APRA. The stated exclusions or exemptions within this legislative framework are limited to specific scenarios that are already covered under existing items in the charging instrument, ensuring that the regulatory oversight is comprehensive yet flexible.
Key Provisions
The legislative instrument F2006B01151, issued under the Australian Prudential Regulation Authority Act 1998, modifies the Instrument Fixing Charges to be Paid to APRA for Applications for Authorisation as an Authorised Deposit-taking Institution (ADI), General Insurer, or Life Company. This variation specifically addresses the charges applicable for applications for authorisation as an ADI, as outlined in section 9 of the Banking Act 1959 (section 3A). It introduces a new charge of $22,000 for such applications that do not fall under the existing categories specified in items 1, 2, or 3 of the charging instrument.
The obligations imposed by this variation are primarily on the entities applying for authorisation as an ADI. They must now be prepared to pay the specified charge of $22,000 for their application if it does not fit within the categories defined by items 1, 2, or 3 of the charging instrument. This requirement ensures that applicants are fully informed about the costs associated with their applications and helps maintain transparency and consistency in the application process.
There are no specific offences or penalties outlined in the legislative instrument itself; however, failure to comply with the prescribed charges could result in the application not being processed. This non-compliance might lead to delays or rejections, which would be governed by the general provisions of the APRA Act and related legislation. The instrument does not specify maximum penalties, but such consequences would be determined by the authority in accordance with existing legal frameworks.
In summary, this legislative instrument modifies the charges for ADI authorisation applications, ensuring that applicants are aware of and prepared to meet the specified financial obligations. It does not introduce new offences but reinforces the necessity of adhering to the stipulated charges for the application process to proceed smoothly.