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Media Releases |
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APRA introduces licence fees
Wednesday, 04 June 2003
No. 03.52
For Immediate Release
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The Australian Prudential Regulation Authority (APRA) has introduced licence fees for new authorised deposit-taking institutions (ADIs), general insurance companies and life insurance companies, including friendly societies. The statutory instrument imposing the fees was published in yesterdays special issue of the Commonwealth Government Notices Gazette.
Licence fees for superannuation funds will be introduced when the Governments new licensing regime is launched, currently scheduled for mid 2004.
The fee for each type of licence reflects APRAs costs of processing and determining a licence application from a prospective new entrant to the prudentially supervised finance sector.
The fixed fees (inclusive of GST) for licence applications are as follows:
1. ADI
- bank or special service provider $68,200
- building society or credit union $22,000
- specialist credit card institution $33,000
2. General insurer $68,200
3. Life company
- Non-friendly society $55,000
- Friendly society $22,000
APRAs Chief Executive Officer, Mr Graeme Thompson, said that licensing is a critically important element in prudential regulation.
It ensures that entities being established under APRAs supervisory regime have the requisite starting capital and sound risk management processes in place.
Mr Thompson said that in the past, licence processing costs had been recouped from the annual supervisory levy paid by established institutions.
It is fairer for those costs to be borne by the applicant, who will obtain the benefit of the licence, rather than being subsidised by the general body of supervised institutions through the annual levy, he said.
APRA is the prudential regulator of the financial services industry including banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. It currently regulates $1.5 trillion in assets for 20 million Australians.
| For further information: |
Media Enquiries only:
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| APRA Call Centre |
Susan Morey |
| 1300 131 060 |
APRA - Public Affairs |
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02 9210 3384 |
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0438 124 524 |
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