Variation of List of Names and Categories of Registered Entities - Nomura Australia Ltd

Overview

The Financial Sector (Collection of Data) Act 2001 was enacted to address the need for effective regulation and supervision of financial institutions, aiming to ensure the stability and integrity of the financial sector. The Act empowers the Australian Prudential Regulation Authority (APRA) to collect and manage data relating to registered entities within the financial sector. One of the mechanisms through which APRA exercises this authority is by maintaining a register of entities and a corresponding list of their names. The recent legislative instrument, C2015G01661, exemplifies the application of this authority by removing Nomura Australia Ltd from the register and the list of registered entities, following the cessation of its status as a registrable corporation. This instrument was issued by Barton Ashcroft, a delegate of APRA, pursuant to the powers granted under the Act, thereby reflecting the ongoing regulatory adjustments required to maintain the accuracy and relevance of the financial sector's regulatory framework.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities within the financial sector that are subject to regulation by the Australian Prudential Regulation Authority (APRA). Specifically, the Act mandates the registration of entities that meet the criteria of being a registrable corporation, as defined by section 7 of the Act, and requires these entities to be included in a register maintained by APRA under section 8. The Act further requires APRA to maintain a list of the names of registered entities as per section 11. This legislation extends across the Commonwealth of Australia, impacting financial entities nationwide. The scope of the Act can be adjusted through subordinate instruments, which may include regulations that define additional categories of entities or modify existing ones. In this particular case, the Act’s application is demonstrated through the removal of Nomura Australia Ltd from the register and the corresponding list, following the cessation of its status as a registrable corporation. The Act does not specify particular exclusions or thresholds but relies on APRA’s authority to determine which entities fall under its purview.

Key Provisions

The key provisions of this legislation revolve around the variation of the list of names and categories of registered entities under the Financial Sector (Collection of Data) Act 2001. Section 11 of the Act is particularly pertinent as it pertains to the list of registered entities maintained by APRA (Australian Prudential Regulation Authority), which includes the names of entities subject to data collection obligations (11). This legislation addresses the cessation of Nomura Australia Ltd as a registrable corporation, as defined in section 7 of the Act (7). The removal of Nomura Australia Ltd’s name from the register and the list is formalised under paragraph 10(c) of the Act (10(c)), which allows APRA to update these records accordingly. Under the Act, APRA is obligated to maintain an accurate and updated register of entities and a list of the names of these entities, ensuring compliance with data collection requirements (8, 11). APRA must update this information promptly when an entity ceases to meet the criteria for registration, such as in the case of Nomura Australia Ltd. The delegate of APRA, in this instance Barton Ashcroft, is empowered to make such variations to the list as stipulated under subsection 11(2) of the Act (11(2)). This process ensures that the list remains current and reflective of the entities subject to regulatory oversight. Breaches of the obligations outlined in the Act can lead to various consequences. While the specific offences, penalties, or civil/criminal consequences for failure to comply with the Act are not detailed in this particular legislation, it is understood that non-compliance with data collection obligations could potentially lead to enforcement actions by APRA. These actions might include fines, legal proceedings, or other regulatory sanctions, as provided under the general provisions of the Act and related financial sector legislation. The exact penalties would depend on the nature and severity of the breach, but they can be significant, reflecting the importance of accurate and timely data collection in financial regulation.