Variation of two instruments fixing charges to be paid to APRA (15/07/2004)

Overview

The instrument, F2006B01155, enacted in 2004, varies two existing instruments under the Australian Prudential Regulation Authority Act 1998. This legislation was introduced to address the need for adjustments in the charges levied by the Australian Prudential Regulation Authority (APRA) on certain financial sector entities. The instrument was created by Jim Flaye, a delegate of APRA, under the authority granted by subsection 51(1) of the APRA Act and subsection 33(3) of the Acts Interpretation Act 1901. The primary objective of this legislative instrument is to modify the headings of the previously established charging instruments to reflect the correct chronological order, ensuring clarity and proper record-keeping in the administration of fees related to the provision of statistical information and the oversight of foreign banks’ representative offices in Australia.

Scope and Application

The Legislative Instrument pertains to variations of two existing instruments under the Australian Prudential Regulation Authority Act 1998 (APRA Act), specifically addressing the charges payable to the Australian Prudential Regulation Authority (APRA). It applies to entities that are required to pay charges under these instruments, which include financial sector entities providing statistical information to the Reserve Bank of Australia and the Australian Bureau of Statistics, as well as representative offices of foreign banks. The instrument is a Commonwealth legislative instrument, thereby having a national jurisdictional reach within Australia. The instrument specifies the amendments to the headings of the original instruments but does not alter the substantive charges or the entities and activities they govern. The changes in the instrument come into effect from the date of notification in the Gazette and are applicable across Australia, reinforcing the national scope of APRA's regulatory oversight.

Key Provisions

The legislative instrument, dated 15 July 2004 and signed by Jim Flaye, a delegate of the Australian Prudential Regulation Authority (APRA), primarily involves variations to two existing instruments that fix charges to be paid to APRA (section 3). The variations affect the headings of the Statistics Charging Instrument (previously titled "No 1 of 2004") and the Foreign Banks Charging Instrument (previously titled "No 2 of 2004"). The updated headings change these instruments to "No 2 of 2004" and "No 3 of 2004" respectively. This alteration is purely nominal, affecting only the identification of the instruments without changing their substantive provisions. The obligations imposed by this instrument pertain to the administrative updating of the titles of the two charging instruments. There are no new obligations or requirements placed on the entities governed by these instruments. However, entities subject to the original instruments are expected to be aware of these changes in headings, which may be relevant for record-keeping and compliance purposes. In terms of potential consequences for non-compliance, this instrument does not explicitly outline offences, penalties, or civil/criminal consequences for breaching its provisions. However, the APRA Act 1998, under which this instrument is made, may impose penalties for non-compliance with APRA regulations. Given the nature of this instrument, which focuses on administrative updates rather than substantive regulatory changes, it is likely that non-compliance with the updated headings would not attract significant penalties. Nevertheless, entities must ensure they adhere to all APRA requirements to avoid potential enforcement actions under the APRA Act.