Variation of List of Names and Categories of Registered Entities - ARC Funding Pty Ltd

Overview

The Financial Sector (Collection of Data) Act 2001 was enacted to establish a framework for the collection of data from entities in the financial sector, ensuring that the Australian Prudential Regulation Authority (APRA) has the necessary information to effectively supervise and regulate financial institutions. This Act was introduced to address the need for a comprehensive and systematic approach to data collection, which would facilitate better monitoring and regulation of the financial sector. The Parliament of Australia enacted this legislation to provide a legal basis for APRA to collect and maintain data on financial entities, thereby enhancing the stability and resilience of the financial system. The policy objective of the Act is to support APRA in its role of ensuring that financial institutions are operating in a sound and prudent manner, which ultimately protects consumers and maintains confidence in the financial system.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities within the financial sector that are required to be registered by the Australian Prudential Regulation Authority (APRA). Specifically, the Act mandates the maintenance of a Register of Entities, where the names of these entities are recorded. The legislation provides APRA with the authority to require registration of entities that meet certain criteria, ensuring that those involved in the financial sector are appropriately supervised. The Act extends across the Commonwealth, thereby affecting entities and their operations throughout Australia. There are no stated exclusions or thresholds within the Act itself, but the specific details of registration and reporting may be subject to further regulation through subordinate instruments issued by APRA. This ensures that APRA can adapt to changing circumstances and maintain effective oversight of the financial sector.

Key Provisions

This Notice, made under subsection 11(2) of the Financial Sector (Collection of Data) Act 2001, pertains to the variation of the list of names and categories of registered entities. The main operative sections involved here are section 8 (which pertains to the maintenance of the Register of Entities), section 11 (which pertains to the list of names of registered entities), and section 10(a) (which outlines the process for adding entities to the register). According to the Notice, ARC Funding Pty Ltd, with the Australian Business Number (ABN) 20 084 166 156, has become a registrable corporation under section 7 of the Act. As a result, APRA has added the corporation’s name and relevant particulars to the Register of Entities and subsequently to the list of registered entities. The Act imposes several obligations on the parties it governs, including the requirement for APRA to maintain the Register of Entities and the list of names of registered entities. Under section 8, APRA is responsible for keeping the register, which contains details of entities subject to prudential standards. Section 11 mandates that APRA also maintains a list of the names of these entities, ensuring transparency and accessibility of information. Additionally, section 10(a) allows APRA to add the name of a corporation to the register when it becomes a registrable entity. These provisions ensure that APRA can effectively oversee and regulate entities within the financial sector. Failure to comply with the obligations imposed by the Act may result in various consequences. Although specific offences and penalties are not detailed within the Notice, the Act generally provides for both civil and criminal penalties for non-compliance. For example, section 12 of the Act may impose fines for providing false or misleading information, while section 13 may impose penalties for non-cooperation with APRA's data collection requirements. Additionally, section 14 of the Act provides for the possibility of prosecution for serious breaches, which could result in substantial fines or imprisonment. These provisions underscore the importance of adhering to the Act’s requirements to avoid legal repercussions.