Variation of List of Names and Categories of Registered Entities - J.P. Morgan Special Opportunities (Delaware) I LLC

Overview

The Financial Sector (Collection of Data) Act 2001 was enacted to address the need for the collection and management of data by the Australian Prudential Regulation Authority (APRA) in relation to financial sector entities. This legislation was introduced to ensure that APRA could effectively regulate and monitor the financial sector, thereby contributing to the stability and integrity of the Australian financial system. Enacted by the Parliament of Australia, the Act provides APRA with the authority to collect, maintain, and analyse data from various financial entities, enabling informed decision-making and regulatory oversight. The Act's policy objective is to facilitate the effective regulation and supervision of financial institutions and markets, thus protecting consumers and maintaining the overall health of the financial system. This legislative instrument, specifically the Variation of List of Names and Categories of Registered Entities, demonstrates APRA’s ongoing role in updating the register of entities to reflect changes in the status of registrable corporations. By removing the name of J.P. Morgan Special Opportunities (Delaware) I LLC from the list, APRA ensures that the register remains accurate and reflective of the current legal and operational status of entities under its purview. This action, authorised by the Act, underscores the importance of maintaining an up-to-date and precise registry to support APRA’s regulatory functions effectively.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities that are considered registrable corporations under the legislation, and it is administered by the Australian Prudential Regulation Authority (APRA). The Act mandates APRA to maintain a register of such entities and a separate list of their names. The scope of the Act extends to financial entities operating within Australia, as it is a Commonwealth Act, thus having a national jurisdictional reach. The Act requires APRA to remove the names and particulars of entities that no longer meet the criteria for registration, as seen in the variation notice issued on 9 April 2015 by Barton Ashcroft, a delegate of APRA. The notice reflects the cessation of J.P. Morgan Special Opportunities (Delaware) I LLC from being a registrable corporation, thereby removing it from the list of registered entities. The Act does not specify any exclusions or exemptions, and its application can be further extended or restricted through subordinate instruments as deemed necessary by APRA.

Key Provisions

The main operative sections of the legislation, specifically sections 8, 11, 7, 10(c), and 5(3) of the Financial Sector (Collection of Data) Act 2001, detail the procedure for maintaining and updating the Register of Entities and the list of registered entities. Section 8 requires APRA to maintain the register, while section 11 mandates that APRA also keep a list of the names of these registered entities. Section 7 defines what constitutes a registrable corporation. Section 10(c) allows APRA to remove the name of a corporation from the register if it ceases to be a registrable corporation, and section 5(3) clarifies that such a corporation is no longer considered a registered entity under the Act. Under this legislation, APRA is required to ensure the accuracy and currency of the Register of Entities and the list of registered entities. This involves the removal of entities that no longer meet the criteria for registration, as demonstrated in the case of J.P. Morgan Special Opportunities (Delaware) I LLC. The obligations imposed on APRA include verifying the status of entities on the register, making necessary amendments, and ensuring that all changes are properly documented and communicated. This meticulous maintenance of records is crucial for the effective oversight and regulation of the financial sector. The legislation also outlines the consequences for failing to comply with the requirements set forth by the Act. While the specific offences and penalties are not detailed in this particular piece of legislation, the broader Act provides for both civil and criminal penalties. Civil penalties can include fines up to $210,000 for individuals and $1,050,000 for corporations, while criminal penalties can result in fines up to $210,000 for individuals and $1,050,000 for corporations, as well as potential imprisonment. The severity of these penalties underscores the importance of adhering to the regulatory framework established by the Financial Sector (Collection of Data) Act 2001.