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

Overview

The Financial Sector (Collection of Data) Act 2001, enacted by the Australian Parliament, was introduced to address the need for efficient collection and management of data within the financial sector. This legislation facilitates the regulation and supervision of financial institutions by empowering the Australian Prudential Regulation Authority (APRA) to maintain a register of entities and a list of their names. This ensures that APRA can effectively oversee and regulate financial entities, thereby maintaining the stability and integrity of the financial system. The policy objective of the Act is to provide a robust framework for the collection and management of financial data, enabling APRA to perform its regulatory functions efficiently. The Australian Prudential Regulation Authority, as a delegate of the Australian Government, exercises its powers under this Act to update and maintain the list of registered entities, as evidenced by the variation notice dated 14 August 2014, which includes the addition of J.P. Morgan Special Opportunities (Delaware) III LLC to the register.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 governs the collection and management of data by the Australian Prudential Regulation Authority (APRA) for the purpose of prudential regulation and supervision of financial sector entities. This Act applies to entities such as authorised deposit-taking institutions, authorised market operators, and other financial entities that APRA is responsible for overseeing. The Act mandates the registration of certain entities and the maintenance of a comprehensive list of these registered entities. The geographic reach of the Act is national, as it applies across Australia and involves entities regulated by APRA. However, the Act may include exclusions or exemptions, particularly for entities that do not meet the threshold criteria for registration or those that are regulated by other bodies. The Act also allows for the application to be extended or restricted through subordinate instruments, such as regulations or guidelines issued by APRA. This legislative framework ensures that APRA can effectively monitor and regulate the financial sector by maintaining up-to-date and accurate data on registered entities.

Key Provisions

The main operative sections of this legislation are section 8, which concerns the maintenance of a Register of Entities, and section 11, which relates to the list of names of registered entities. Section 8 of the Financial Sector (Collection of Data) Act 2001 mandates that the Australian Prudential Regulation Authority (APRA) maintains a register of entities. Section 11 requires that APRA also keeps a list of the names of these registered entities. The current legislation, therefore, involves amending this list to include the names of entities that have been newly registered. Under the Act, APRA has specific obligations to ensure that the register and the list of names are accurately maintained and updated. Section 11(2) provides the authority for a delegate of APRA, in this case, John Hotham, to vary the list of registered entities by adding the names of new entities. This has been exercised in the notice by adding the name of J.P. Morgan Special Opportunities (Delaware) III LLC to the list, following its registration as a registrable corporation under section 7 of the Act. The requirement is to ensure that all relevant entities are correctly documented and recognised as registered entities within the meaning of subsection 5(3) of the Act. The legislation imposes several requirements on the entities it governs. Firstly, entities such as J.P. Morgan Special Opportunities (Delaware) III LLC must meet the criteria of being a registrable corporation as defined in section 7 of the Act. Once these criteria are met, APRA must update the register and the list of names to reflect this change. This ensures that all registrable corporations are appropriately recognised and managed within the regulatory framework. In terms of breaches and penalties, the Act does not explicitly detail specific offences, penalties, or consequences for non-compliance with the registration requirements. However, failing to ensure that entities are properly registered or that the list is accurately maintained could potentially lead to regulatory scrutiny or enforcement actions by APRA. While the Act does not prescribe specific penalties within the notice itself, non-compliance could result in broader regulatory consequences, such as fines, sanctions, or other corrective measures imposed by APRA as part of its regulatory oversight.