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Determinations/Financial (Other) as made
This instrument determines Reporting Standard SRS 534.0 Derivative Financial Instruments by clarifying reporting regarding directly held over the counter derivatives. The revisions enable RSE licensees to report a counterparty rating grade of ‘not applicable’ at item 3 on SRS 534.0.
Administered by: Treasury
Exempt from sunsetting by the Legislation (Exemptions and Other Matters) Regulation 2015 s11 item 06
Registered 13 Jan 2017
Tabling HistoryDate
Tabled HR07-Feb-2017
Tabled Senate07-Feb-2017

Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2017

EXPLANATORY STATEMENT

Prepared by the Australian Prudential Regulation Authority (APRA)

Financial Sector (Collection of Data) Act 2001, sections 13 and 15

Acts Interpretation Act 1901, section 33

Under subsection 13(1) of the Financial Sector (Collection of Data) Act 2001 (the Act), APRA has the power to determine reporting standards, in writing, with which financial sector entities must comply.  Such standards relate to reporting financial or accounting data and other information regarding the business or activities of the entities.  Subsection 33(3) of the Acts Interpretation Act 1901 provides that where an Act confers a power to issue an instrument the power shall, unless the contrary intention appears, be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to revoke any such instrument.

On 5 January 2017, APRA made Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2017 (the instrument) which:

(1)          revokes Reporting Standard SRS 534.0 Derivative Financial Instruments (SRS 534.0) made under Financial Sector (Collection of Data) (reporting standard) determination No. 39 of 2015; and

(2)          determines Reporting Standard SRS 534.0 Derivative Financial Instruments.

This instrument commences on 1 July 2016.

1.      Background

APRA is empowered to make reporting standards under the Act, which require regulated institutions, including RSE licensees, to submit specified data through various reporting forms. Data from these forms is used by APRA to assist with APRA’s supervisory functions, and also by Government and other agencies such as the Australian Bureau of Statistics and the Australian Securities and Investments Commission.

Since the commencement of SRS 534.0, the superannuation industry has advised that the form does not allow RSE licensees to accurately report details of directly held over the counter derivatives where no counterparty credit rating is known.

2.      Purpose and operation of the instruments

The purpose of making this instrument is to amend SRS 534.0 to clarify reporting regarding directly held over the counter derivatives. The revisions enable RSE licensees to report a counterparty rating grade of ‘not applicable’ at item 3 on SRS 534.0.

3.      Consultation

APRA previously consulted on SRS 534.0 during 2015.

APRA determined that it was not necessary to publicly consult on the revisions as they are very minor in nature.

4.   Regulation Impact Statement

The Office of Best Practice Regulation has advised that a Regulation Impact Statement is not required for this legislative instrument.

5.   Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

A Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 is provided at Attachment A to this Explanatory Statement.


 

ATTACHMENT A

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Financial Sector (Collection of Data) (reporting standard) determination No. 1 of 2017 – Reporting Standard SRS 534.0 Derivative Financial Instruments

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instrument listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (HRPS Act).

Overview of the Legislative Instruments

The purpose of making this legislative instrument is to make minor revisions to SRS 534.0 to clarify existing reporting requirements.

Human rights implications

APRA has assessed the instrument and is of the view that it does not engage any of the applicable rights or freedoms recognised or declared in the international instruments listed in section 3 of the HRPS Act. Accordingly, in APRA’s assessment, the instrument is compatible with human rights.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.