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Registered Financial Corporations

Corporations registered under the Financial Sector (Collection of Data) Act 2001

The Financial Sector (Collection of Data) Act 2001 (the Act) repealed the Financial Corporations Act 1974 on 1 July 2002. The Act serves mainly to facilitate the collection of statistical data.

The following provides information to assist reporting entities provide data to APRA.

RFC Reporting Framework (lodging returns)

Reporting requirements for RFCs are given legal effect through Reporting Standards under the Financial Sector (Collection of Data) Act 2001. Entities with assets less than $50 million are not required to report.

Consultation

  • 30/11/2012 - Consultation letter on proposed change to calendar due dates for non-monthly returns.

Registration

Section 7 of the Act outlines the characteristics of corporations subject to the Act.

In general, the Act applies to:

  • any corporation whose total assets exceed $5 million; and
  • whose sole or principal business in Australia is borrowing money and provision of finance; or
  • whose assets arising from the provision of finance exceed 50 per cent of its total assets in Australia.

Responsibility to register lies with the corporation. For further information, please refer to the Act.

To register, a corporation needs to:

  • Provide information in the: Registration Form
  • Provide a copy of the corporation’s last audited statement of financial position with an: Initial Return.
  • Send this information to ‘ADI and RFC Statistics, Australian Prudential Regulation Authority, GPO Box 9836, Sydney, NSW, 2001’.

Once registered and categorised, corporations may be required to submit the appropriate forms on either a monthly or quarterly basis. These requirements will be communicated to the corporation upon registration.

Click here to view a list of RFCs

Note: This is not a list for the purposes of subsections 11(4) and (5) of the Act. A list for the purpose of subsection 11(4) is prepared and published by APRA in the Gazette on an annual basis.

Penalties

Registration does not give RFCs any special status or guarantee their financial stability. The Act prohibits RFCs from advertising that they are ‘registered under the Financial Sector (Collection of Data) Act 2001’ or ‘registered with the Australian Prudential Regulation Authority’.

If an RFC fails to register within 60 days of becoming eligible for registration, it is subject to a potential fine of 50 penalty units a day for every day that it continues to be non-registered.

An RFC that fails to inform APRA within 60 days of any change of name or registered address, or change in principal methods of borrowing or lending, is subject to a potential fine of 10 penalty units a day.

Exclusions

Corporations specifically excluded from registering under the Act include banks, building societies, credit unions, public authorities, friendly or benefit societies, insurance companies and companies authorised by a law of a State or of a Territory to act as an executor, administrator and trustee.

Banking Act Exemption Order No. 96

Banking (Exemption) Order No 96 exempts registered entities from section 8 of the Banking Act, but clarifies the requirements for issuing a prudential supervision warning under the Banking Act:

  • These registered entities do not take deposits otherwise than by issuing or selling securities within the meaning of Part 6D.2 of the Corporations Act 2001, or by issuing or selling a financial product within the meaning of Part 7.9 of the Corporations Act 2001; and
  • When offering such securities or financial products to an investor, the investor is given the warning (the prudential supervision warning) that the registered entity is not supervised by APRA under the Banking Act and that the investor will not have the right to priority of repayment that is conferred on depositors by section 13A of that Act, in the manner specified in the exemption order.
 
2013 Consultation
 
APRA consulted on proposed changes to the exemption order in 2013.
 

 

2014 Response paper
 
APRA's response to the 2013 consultation can be found here.
 
 

For further information, please email statistics@apra.gov.au