The Australian Prudential Regulation Authority (APRA) released today a consultation package relating to the authorisation and prudential oversight of providers of First Home Saver Accounts (FHSAs).
On 28 May 2008, the Commonwealth Government introduced the First Home Saver Accounts Bill 2008 (FHSA Bill 2008) into Parliament. It is intended that FHSAs can be offered from 1 October 2008.
The Bill allows for public offer and extended public offer superannuation licensees (known as RSE licensees), life companies and authorised deposit-taking institutions (ADIs) to provide these accounts. Such institutions are prudentially supervised by APRA.
RSE licensees will not automatically be able to offer these accounts. Under the FHSA Bill, 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. As a consequence, APRA has prepared an application process and a draft prudential standard for RSE licensees wanting to operate FHSAs.
APRA Deputy Chairman, Ross Jones, noted that ‘APRA has given careful consideration to the requirements that RSE licensees already have to meet. The proposed application form and new prudential standard have been developed taking these existing requirements into account.’
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 has also developed a draft reporting standard for all institutions that offer FHSAs.
The prudential standard, reporting standard (and form instructions), application form for authorisation and a letter to industry summarising the proposals are available from the APRA website at www.apra.gov.au/policy.
On 8 February 2008 the Government released a consultation paper, First Home Saver Accounts: Outline of proposed arrangements, which included proposals for the delivery, administration, regulation and taxation of FHSAs. 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.
