Variation of List of Names and Categories of Registered Entities - Custom Fleet (Australia) Limited

Overview

The Financial Sector (Collection of Data) Act 2001, enacted by the Parliament of Australia, was introduced to ensure the efficient collection and dissemination of data within the financial sector, thereby facilitating prudential supervision and contributing to the stability and integrity of the financial system. This legislation provides the Australian Prudential Regulation Authority (APRA) with the authority to collect and maintain data on financial sector entities, which is crucial for effective regulation and supervision. The policy objective of the Act is to enable APRA to carry out its supervisory role by requiring financial sector entities to provide data, thereby enhancing the ability to identify and mitigate systemic risks. This particular legislative instrument, the Variation of List of Names and Categories of Registered Entities (No. 1) Instrument 2014, issued under the Financial Sector (Collection of Data) Act 2001, addresses the need to update the list of registered entities by removing entities that no longer meet the criteria for registration. In this instance, the Australian Prudential Regulation Authority, acting under the authority delegated by the Act, has removed Custom Fleet (Australia) Limited from the list of registered entities due to its cessation as a registrable corporation. This action aligns with the Act's objective to maintain an accurate and up-to-date register of entities subject to prudential regulation.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities involved in the financial sector, including banks, insurance companies, and other financial institutions. The Act mandates the Australian Prudential Regulation Authority (APRA) to maintain a Register of Entities, which includes the names and categories of these registered entities. This legislation operates on a national level, affecting entities across Australia. The Act excludes entities that do not meet the criteria for registration, and its application can be extended or restricted through subordinate instruments issued by APRA. In this specific case, the Act was applied to remove the name of Custom Fleet (Australia) Limited from the register as it ceased to be a registrable corporation, reflecting the dynamic nature of the entities subject to this regulatory framework.

Key Provisions

The Financial Sector (Collection of Data) Act 2001 (the Act) contains provisions that govern the collection and management of financial data by the Australian Prudential Regulation Authority (APRA). Specifically, section 8 of the Act establishes that APRA maintains a Register of Entities (the register), while section 11 mandates that APRA also keeps a list of the names of these registered entities (the list). This legislation allows APRA to ensure that entities that are subject to the Act are properly documented and overseen. Under section 11(2) of the Act, APRA has the authority to vary the list of registered entities. This is demonstrated in the provided Notice, where John Hotham, a delegate of APRA, has exercised this authority by removing the name of Custom Fleet (Australia) Limited from the list. The corporation in question, Custom Fleet (Australia) Limited (ABN 70 068 998 407), has ceased to be a registrable corporation as defined in section 7 of the Act, and consequently, it has ceased to be a registered entity under subsection 5(3) of the Act. This change reflects the corporation's exit from the scope of entities required to be listed and monitored by APRA. Entities governed by the Act are obligated to ensure that they remain compliant with their registration requirements. For registered entities, this includes maintaining accurate and up-to-date information in the register. In the case of Custom Fleet (Australia) Limited, once it ceased to meet the criteria for being a registrable corporation, it was the entity’s responsibility, in conjunction with APRA, to ensure that its details were appropriately removed from the register and list. APRA's role in this process is to verify and update these records to reflect the current status of registered entities accurately. Failure to comply with the Act’s requirements can lead to various civil and criminal consequences. Although the specific penalties for non-compliance are not detailed within the Notice itself, breaches of the Act could potentially result in enforcement actions under the relevant sections of the Act. These may include fines or other penalties as prescribed by the Act. The exact nature and severity of these penalties would depend on the specific breach and the discretion of the court or regulatory body in handling such matters.