The Financial Sector (Collection of Data) Act requires most mortgage lenders to be registered.
Who is Regulated by the Act?
A business is required to register if:
its total assets exceed $5 million; and
its sole or principal business in Australia is borrowing money and provision of finance; or
its assets arising from the provision of finance exceed 50 per cent of its total assets in Australia.
"Regulated entities" (ie authorised-deposit taking institutions (ADIs) regulated by APRA under the Banking Act) are not required to be listed on the Register of Entities.
Generally speaking, money market corporations, and non-bank lenders should be listed on the Register of Entities.
If I am a Registrable Entity how do I Become Listed on the Register of Entities?
APRA will register an entity on the Register of Entities upon receipt of an Application Form completed by the entity.
It is the responsibility of the registrable entity to register with APRA within 60 days of the day on which the corporation becomes a registrable corporation.
To obtain registration, the registrable entity is required to provide APRA with:
the name , place and date of incorporation and the address of the registered office of the corporation;
the name and address of the registered office of every corporation that is related to the corporation;
details of the principal methods by which the corporation ordinarily borrows money;
details of the principal kinds of finance ordinarily provided by the corporation;
a copy of the corporation’s last audited statement of financial position
Upon submission of an application for registration, APRA will determine which category on the Register of Entities that the corporation should be placed in. There are three categories on the Register of Entities:
Category D – Money Market Corporations
Category I – Intra-Group Financiers
Category Other - for all other entities
Registration does not provide registered entities with any special status. A registered entity is not permitted to advertise that they are registered with APRA or that they are registered under the Financial Sector (Collection of Data) Act.
What Happens if I am a Registrable Entity and I am not Registered?
There are severe penalties for "registrable entities" which fail to register. APRA may impose a fine of $5,000 per day for "registrable entities" which fail to register within 60 days of becoming eligible for registration.
In addition, a registered entity which fails to advise APRA of a change in:
registered address; or
principal methods of borrowing or lending
may be fined $1,000.
If I am a Registered Entity What Must I do?
APRA has power under the Financial Sector (Collection of Data) Act to determine the reporting standards that all registered entities must comply with. The Act enables APRA to collect statistical data for use in compiling monetary and credit aggregates by way of periodic reports submitted by registered entities. These reports must be submitted either monthly or quarterly as determined by APRA. Upon registration, APRA will advise the registered entity of the forms which it must submit periodically.
APRA may impose a fine on any registered entity which:
fails to provide the requisite reports to APRA within 21 days of the end of the reporting month or quarter; or
fails to provide any other additional information as requested by APRA.
APRA may exempt an entity from the requirement to comply with some or all of the applicable reporting requirements. APRA will record these "exempted entities" on the Register of Entities. By Vicki Grey
t (02) 9931 4927
t (02) 9931 4753
t (03) 9617 8596
t (03) 9617 8538
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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