The Australian Prudential Regulation Authority (APRA) released today the final package relating to the authorisation and prudential oversight of providers of First Home Saver Accounts (FHSAs).

The package comprises a prudential standard relating to superannuation licensees (known as RSE licensees), an authorisation form, a notification of intention to offer FHSAs form and a reporting standard. The standards will be effective from 1 October.

APRA Deputy Chairman, Ross Jones, said that ‘submissions in response to APRA’s consultation on draft requirements were considered and some minor changes were made to the proposed package as a result.’

In June 2008, the Parliament of Australia passed the First Home Saver Accounts Act 2008 (FHSA Act). This legislation provides that FHSAs can be offered from 1 October 2008.

The FHSA Act allows for public offer and extended public offer RSE licensees, life companies and authorised deposit-taking institutions (ADIs) to provide these accounts. Under the FHSA Act, RSE licensees will have to establish a separate trust for this purpose and the Superannuation Industry (Supervision) Act 1993 will not apply to this new trust. Mr Jones said that ‘the application for authorisation form requires RSE licensees to demonstrate that risks arising from this new trust for FHSA business are properly considered and addressed. The reporting standard, which applies to providers across all three industries, collects specific prudentially relevant information on FHSAs.’

Life companies or ADIs that wish to provide FHSAs need to notify APRA of their intention to do so prior to providing, or offering to provide, a FHSA. APRA prudential standards that already apply to the operations of life companies and ADIs are adequate for the provision of FHSAs.

The final prudential standard, reporting standard (and form instructions) and application form are available from the APRA website at www.apra.gov.au/Policy/First-Home-Saver-Accounts-July-2008.cfm .

Further details on FHSAs can be obtained from the Government website at http://www.homesaver.treasury.gov.au/content/default.asp.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $3 trillion in assets for 21 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Stuart Snell, Head of Public Affairs

Australian Prudential Regulation Authority

Telephone: 02 9210 3384  

Mobile: 0407 250 276

All other inquiries:
APRA Contact Centre 1300 131 060.