Variation of List of Names and Categories of Registered Entities - PersonalDirect Limited

Overview

The Financial Sector (Collection of Data) Act 2001 was enacted to provide a framework for the collection of financial sector data by the Australian Prudential Regulation Authority (APRA). This legislation addresses the need for a comprehensive and coordinated approach to collecting and analysing data from entities within the financial sector, ensuring the stability and efficiency of the sector. The Act allows APRA to maintain a Register of Entities and a list of registered entities' names, facilitating the regulation and supervision of these entities. In 2014, a legislative instrument was issued under this Act to amend the list by removing the name of PersonalDirect Limited, a company that had ceased to be a registrable corporation. The policy objective behind this amendment is to ensure the list of registered entities accurately reflects the current status of entities within the financial sector, maintaining the integrity and relevance of APRA's regulatory oversight.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities regulated by the Australian Prudential Regulation Authority (APRA) and encompasses entities such as authorised deposit-taking institutions, credit unions, insurers, friendly societies, and superannuation funds. The Act imposes obligations on these entities to collect and provide data to APRA, which maintains a Register of Entities and a list of the names of these registered entities. This legislation operates on a national level across Australia, with the scope of application extending to entities that fall within APRA’s regulatory purview. The legislative framework also allows for the exclusion of certain entities or categories based on specific criteria outlined in the Act. Additionally, the Act provides for the removal of entities from the register when they cease to meet the registrable criteria, as evidenced by the variation of the list to remove PersonalDirect Limited, a corporation that has ceased to be a registrable entity under the Act. The application of the Act may be further extended or restricted through subordinate instruments issued by APRA.

Key Provisions

The primary operative sections of the Gazette C2014G00945 pertain to the Australian Prudential Regulation Authority's (APRA) management of the Register of Entities and the List of Names of Registered Entities under the Financial Sector (Collection of Data) Act 2001. Specifically, section 8 of the Act mandates APRA to maintain a register of entities, while section 11 requires APRA to keep a list of the names of registered entities. The Gazette details that PersonalDirect Limited, a company identified by its Australian Business Number (ABN: 68 051 288 450), has ceased to be a registrable corporation under section 7 of the Act. Consequently, APRA, acting under paragraph 10(c) of the Act, has removed the corporation's name and related particulars from the register. As a result, PersonalDirect Limited is no longer considered a registered entity under subsection 5(3) of the Act. This decision to modify the list of names is executed by John Hotham, a delegate of APRA, under subsection 11(2) of the Act. The obligations imposed by the Act on the parties or entities it governs include the maintenance and updating of the Register of Entities and the List of Names of Registered Entities. APRA, as the regulatory body, is responsible for ensuring that the register and the list accurately reflect the current status of registered entities. This involves the removal of entities that no longer meet the criteria for registration, as illustrated in the Gazette where PersonalDirect Limited's name is removed from both the register and the list. APRA must also ensure that any changes to these records are formally documented and communicated through official notices, such as the one issued by John Hotham. The process highlights the need for APRA to act swiftly and accurately to reflect the cessation of a corporation's registrable status. The Gazette specifies the consequences for breach of the Act's provisions, although it does not detail specific offences, penalties, or civil/criminal consequences within this particular notice. Generally, under the Financial Sector (Collection of Data) Act 2001, breaches can lead to civil penalties for non-compliance or incorrect data submissions. The maximum penalties can include fines and, in severe cases, criminal charges. However, these details are not elaborated upon in the Gazette itself but would be defined within the broader context of the Act and its accompanying regulations. The focus of this Gazette is on the administrative action taken by APRA to update the records accurately and transparently.