House of Representatives
Treasury Laws Amendment (Banking Measures No. 1) Bill 2017
Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)Certain RFCs are granted a specific exemption from APRA (for example, under the Banking Exemption No . 1 of 2015 ), while the other entities (other finance companies, securitisers and managed investment funds) do not meet the definition of 'banking business' and therefore are excluded entirely.
See Reserve Bank of Australia, Financial Stability Report (April 2017). Accessed online at: www.rba.gov.au/publications/fsr/2017/apr/aus-fin-sys.html, 2 June 2017.
Calculations based on APRA and ASIC data.
As noted above, non-ADI lenders are also funded by ADIs, but this activity is already within APRA's supervisory reach.
See Manalo J., McLoughlin K. and Schwartz C. (2015), Shadow Banking - International and Domestic Developments , Reserve Bank of Australia Bulletin, March Quarter 2015 (RBA). Accessed online at: www.rba.gov.au/publications/bulletin/2015/mar/8.html, 2 June 2017.
Non-ADI lenders will be defined under an expanded definition of 'registrable corporation' in section 7 of the FSCODA. This will capture all non-ADI lenders of a significant size; that is, any current RFCs and other non-ADI lenders with a stock of financing assets in excess of $50 million or that make more than $50 million of new financing in a year.
See Customer Owned Banking Association (COBA), Submission to the Financial System Inquiry (2014). Accessed online at: http://fsi.gov.au/files/2014/04/COBA.pdf, 27 June 2016.
See p.352, Financial System Inquiry - Final Report (1997), Chapter 8 - Financial Safety , accessed online at: https://fsi.treasury.gov.au/content/downloads/FinalReport/chapt08.pdf, 1 September 2017; and p. 265, Financial System Inquiry - Final Report (2014), Appendix 1 - Significant Matters , accessed online at: http://fsi.gov.au/files/2014/12/FSI_Final_Report_Consolidated20141210.pdf, 1 September 2017.
Parliamentary Joint Committee on Human Rights, Practice Note 2 : Offence provisions , civil penalties and human rights , December 2014, http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Human_Rights/Guidance_Notes_and_Resources (last accessed on 24 August 2017).
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
