Variation of List of Names and Categories of Registered Entities - Home Owner Mortgage Enhanced Securities Limited

Overview

The Financial Sector (Collection of Data) Act 2001, enacted by the Commonwealth Parliament, was introduced to address the need for the collection and management of data within the financial sector, ensuring effective regulation and supervision. This Act empowers the Australian Prudential Regulation Authority (APRA) to maintain a register of entities and lists of registered entities to facilitate its regulatory functions. The policy objective behind this Act is to ensure that APRA can efficiently monitor and manage financial entities, thereby maintaining the stability and integrity of the financial system. In the context of the given legislation, the Australian Prudential Regulation Authority has exercised its power under the Act to remove the name of Home Owner Mortgage Enhanced Securities Limited from its register and the corresponding list, following the cessation of this corporation’s status as a registrable entity. This amendment reflects the authority's role in ensuring that the information it maintains is accurate and reflective of the current status of entities within its purview.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities that are subject to registration with the Australian Prudential Regulation Authority (APRA) and whose names are included in the Register of Entities maintained by APRA. This Act encompasses a wide range of financial sector entities, including banks, credit unions, authorised deposit-taking institutions, and other prescribed entities. The Act's jurisdictional reach extends across the Commonwealth of Australia, as it is a federal statute. The Notice regarding the variation of the list of names and categories of registered entities specifies that Home Owner Mortgage Enhanced Securities Limited, identified by its Australian Business Number (ABN) 30 076 239 104, has ceased to be a registrable corporation under section 7 of the Act and thus no longer qualifies as a registered entity under subsection 5(3). APRA has removed the corporation's details from the Register, as authorised by paragraph 10(c) of the Act, and subsequently, Barton Ashcroft, a delegate of APRA, has varied the list by removing the corporation’s name, as permitted under subsection 11(2) of the Act. This exclusion is made effective through a statutory instrument issued under the authority granted by the Act, thereby updating the list of registered entities in compliance with the legislative requirements.

Key Provisions

The primary operative sections of the legislation in question involve the removal of a corporation's name from the register of entities maintained by the Australian Prudential Regulation Authority (APRA) under the Financial Sector (Collection of Data) Act 2001 (section 8). According to section 11, APRA maintains a list of the names of registered entities, and it is this list that is being varied by the removal of Home Owner Mortgage Enhanced Securities Limited (ABN 30 076 239 104). The cessation of this corporation as a registrable corporation, defined under section 7, has resulted in its removal from the register (section 10(c)). Consequently, the corporation is no longer considered a registered entity as per subsection 5(3) of the Act. The obligations and requirements imposed by the Act on the parties and entities it governs include the maintenance of a comprehensive and accurate register of registered entities. This register must be updated promptly to reflect changes in the status of entities, such as the cessation of a corporation's registrable status. APRA is responsible for ensuring the accuracy and completeness of this register, which includes the ability to remove entities that no longer meet the criteria for registration. The removal of Home Owner Mortgage Enhanced Securities Limited from the register is an exercise of this obligation, carried out by a delegate of APRA, Barton Ashcroft, as per subsection 11(2) of the Act. Under the Act, breaches or non-compliance with the requirements for maintaining and updating the register can result in legal consequences. While the specific provisions regarding offences and penalties are not detailed in this particular legislation, it is reasonable to infer that any failure to accurately reflect the status of registered entities could lead to civil or administrative penalties. The Act likely incorporates broader provisions within the Financial Sector (Collection of Data) Act 2001 that address such breaches, including potential enforcement actions by APRA. However, the exact penalties are not specified in this particular piece of legislation.