Variation of List of Names and Categories of Registered Entities - RBS Finance (Australia) Limited

Overview

The Financial Sector (Collection of Data) Act 2001, enacted by the Australian Parliament, aims to facilitate the collection and management of data within the financial sector to ensure the stability and integrity of the financial system. This legislation mandates the Australian Prudential Regulation Authority (APRA) to maintain a Register of Entities and a list of names of registered entities. The problem or gap this Act addresses is the need for a structured and consistent approach to data collection and management in the financial sector, ensuring that APRA has the necessary information to perform its regulatory functions effectively. In this context, the 2014 Gazetted legislative instrument, Variation of List of Names and Categories of Registered Entities, demonstrates the Act's application by detailing the removal of RBS Finance (Australia) Limited from the list of registered entities due to its cessation as a registrable corporation. This action by APRA aligns with the policy objective of maintaining an accurate and current list of entities subject to regulatory oversight.

Scope and Application

The Financial Sector (Collection of Data) Act 2001 applies to entities involved in the financial sector and is primarily concerned with the collection of data by the Australian Prudential Regulation Authority (APRA). This Act mandates the maintenance of a Register of Entities and a list of names of registered entities, which includes companies and other entities deemed relevant to the financial sector. The scope of the Act extends to the geographic and jurisdictional reach of the Commonwealth, thereby encompassing entities operating within Australia. The Act provides for the exclusion of certain entities based on their status as registrable corporations, as defined in section 7. The application of the Act may be further extended or restricted through subordinate instruments, allowing for the inclusion of additional entities or categories as necessary. The removal of RBS Finance (Australia) Limited from the Register of Entities and the list of names of registered entities is an example of how the Act is applied to ensure the register remains accurate and up-to-date.

Key Provisions

The gazetted legislation primarily focuses on the variation of the list of names and categories of registered entities under the Financial Sector (Collection of Data) Act 2001 (section 11). This variation is made pursuant to subsection 11(2) of the Act. The Australian Prudential Regulation Authority (APRA) maintains a Register of Entities under section 8 of the Act, as well as a list of names of registered entities under section 11. Here, APRA has removed the name of RBS Finance (Australia) Limited (ABN 32 000 931 760) from the register, and consequently from the list of registered entities, as this corporation has ceased to be a registrable corporation under section 7 of the Act. The decision to remove the corporation’s name is in accordance with paragraph 10(c) of the Act, and has been executed by John Hotham, a delegate of APRA. The Act imposes several obligations and requirements on the parties involved, particularly on APRA. APRA is tasked with maintaining and updating the register and the list of registered entities, ensuring that they reflect the current status of registrable corporations. This includes removing entities that have ceased to be registrable corporations. In this instance, APRA has discharged its duty by removing the name of RBS Finance (Australia) Limited from the register and the list, following the corporation’s cessation as a registrable entity under the Act. Additionally, the Act requires that such variations to the list be documented and signed by an appropriate delegate of APRA, which has been duly carried out by John Hotham, Senior Manager of Data Collection at APRA. Breaching the provisions of the Financial Sector (Collection of Data) Act 2001 may result in various civil and criminal consequences. Although the specific offences, penalties, and consequences for breach are not detailed in the gazetted legislation, the Act generally provides for fines and imprisonment for non-compliance. The severity of the penalties depends on the nature and extent of the breach, and can include substantial fines for corporations and individuals. In cases of serious or repeated non-compliance, more severe penalties may be imposed, potentially including imprisonment for directors or officers of the entity involved. The Act aims to ensure that APRA and other entities comply with their obligations to maintain accurate and up-to-date records of registered entities, thereby safeguarding the integrity of financial sector data collection.