Financial Sector (Collection of Data) (reporting standard) determination No. 9 of 2021

Reporting Standard ARS 730.1 ABS/RBA Fees Charged

Financial Sector (Collection of Data) Act 2001

I, Alison Bliss, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:

(a)   REVOKE Financial Sector (Collection of Data) (reporting standard) determination No. 21 of 2019, including Reporting Standard ARS 730.1 ABS/RBA Fees Charged made under that Determination; and

(b)   DETERMINE Reporting Standard ARS 730.1 ABS/RBA Fees Charged, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 4 of the reporting standard.

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on 31 March 2021.

This instrument commences on 31 March 2021.

Dated: 22 March 2021

[Signed]

Alison Bliss

General Manager

Data Analytics and Insights Division

Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given by section 5 of the Act.

Schedule

Reporting Standard ARS 730.1 ABS/RBA Fees Charged comprises the document commencing on the following page.

Reporting Standard ARS 730.1

ABS/RBA Fees Charged

Objective of this Reporting Standard

Authority

1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2.             Information collected by Reporting Form ARF 730.1 ABS/RBA Fees Charged (ARF 730.1) is used by the ABS and RBA for policy and statistical purposes. This information may also be used by APRA for prudential and publication purposes.

3.             This Reporting Standard is an Economic and Financial Statistics (EFS) Reporting Standard for the purposes of Reporting Standard ARS 701.0 ABS/RBA Definitions for the EFS Collection (ARS 701.0). 

Application and commencement

4.             This Reporting Standard applies to an authorised deposit-taking institution (ADI) and registered financial corporations (RFCs) as set out in the table below, where ‘total assets’ are measured by the value reported in item 13 (column 1) on Reporting Form ARF 720.0A ABS/RBA Statement of Financial Position (Standard) (ARF 720.0A).

5.             APRA may from time to time determine that a threshold, or a higher threshold than that specified in paragraph 4 of this Reporting Standard, will apply to a particular ADI or RFC. If APRA does so it will notify the ADI or RFC concerned in writing. 

6.             This Reporting Standard applies for reporting periods ending on or after 31 March 2021.

Information required

7.             An ADI to which this Reporting Standard applies must provide APRA with the information required by this Reporting Standard for each reporting period on a domestic books consolidation.

Method of submission

8.             The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application or by a method (i.e. a web-based solution) notified by APRA, in writing, prior to submission. 

Note: the Direct to APRA application software (also known as D2A) may be obtained from APRA.

Reporting periods and due dates

9.             The information required by this Reporting Standard must be provided in respect of each year ended 30 June by an ADI or RFC to which this Reporting Standard applies under paragraphs 4 or 5.

10.         The information required by this Reporting Standard must be provided to APRA within 4 calendar months after the end of the reporting period to which the information relates.[1]

11.         APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular ADI, to require it to provide the information required by this Reporting Standard more frequently, or less frequently, having regard to:

(a)          the particular circumstances of the ADI; and

(b)          the extent to which the information is required for the purposes of the ABS or RBA.

12.         APRA may grant an ADI an extension of a due date, in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

13.         All information provided by an ADI or RFC under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the external auditor of the ADI or RFC as set out in Prudential Standard APS 310 Audit and Related Matters for ADIs or Reporting Standard RRS 710.0 ABS/RBA Audit Requirements for Registered Financial Corporations for RFCs. Relevant standards and guidance statements issued by the Auditing and Assurance Standards Board provide information on the scope and nature of the review and testing required from external auditors. This review and testing must be done on an annual basis or more frequently if required by the external auditor to enable the external auditor to form an opinion on the accuracy and reliability of the information provided by an ADI or RFC under this Reporting Standard.

14.         All information provided by an ADI or RFC under this Reporting Standard must be subject to systems, processes and controls developed by the ADI or RFC for the internal review and authorisation of that information. These systems, processes and controls are to assure the completeness and reliability of the information provided.

Authorisation

15.         When an officer or agent of an ADI or RFC submits information under this Reporting Standard and uses the D2A application, or other method notified by APRA, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate or other digital identity credential acceptable to APRA.

Minor alterations to forms and instructions

16.         APRA may make minor variations to:

(a)          a form that is part of this Reporting Standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b)          the instructions to a form, to clarify their application to the form

without changing any substantive requirement in the form or instructions.

17.         If APRA makes such a variation it must notify in writing each ADI that is required to report under this Reporting Standard.

Interpretation

18.         Terms that are defined in ARS 701.0 appear in bold and italics in this Reporting Standard. 

19.         In this Reporting Standard:

due date means the last day of the 4 calendar months provided for in paragraph 10 or, if applicable, the date on a notice of extension given under paragraph 12.

reporting period means a year ended 30 June as provided for in paragraph 9 or, if applicable, the date on a notice given under paragraph 11.

20.         Unless the contrary intention appears, any reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force or existing from time to time.

Reporting Form ARF 730.1

ABS/RBA Fees Charged

Instructions

These instructions assist completion of Reporting Form ARF 730.1 ABS/RBA Fees Charged (ARF 730.1). ARF 730.1 collects annual statistics on fees charged by ADIs.

Information reported in ARF 730.1 is required primarily for purposes of the ABS and the RBA. This information is required for various purposes, including policy and statistical purposes. This information may also be used by APRA for prudential and publication purposes.

Reporting level

ARF 730.1 must be completed by each ADI to which this Reporting Standard applies under paragraphs 4 or 5. 

Reporting basis and unit of measurement

These instructions specify the reporting basis and unit of measurement that applies to each item.

For reporting purposes, unless specified otherwise, enter data as a positive number.

Items on ARF 730.1 must be reported during the reporting period.

Counterparties

Report fees charged by the ADI’s operations/transactions in Australia (i.e. on a domestic books basis), including fees charged to residents and non-residents.  Accordingly, fees charged by entities outside the scope of domestic books – such as funds management or insurance operations – are to be excluded from the data reported. 

Exclude fees charged to related parties.

Fees charged

This form does not follow Australian Accounting Standards for the treatment of fees.

All fees charged by the ADI (except those explicitly excluded below) must be reported in this form. This includes fees (such as establishment fees) that are recorded as interest income in statutory accounts. Report fees charged on an accruals basis.

Report fees charged net of any waivers, exemptions or rebates afforded to the customer. Do not deduct any expenses incurred by the ADI, including expenses relating to:

• commissions paid to mortgage brokers;
• valuation fees for housing and business loans;
• loyalty program costs;
• government taxes; and
• charges imposed by the ADI’s group treasury to various business units.

Reporting by purpose

Classify finance at the lowest level at which it is able to be identified; the purpose that the funds will be used for determines where it is reported on this form. Where finance (identified at the lowest available level) is to be used for more than one purpose, classify that finance to its predominant purpose (based on the purpose for which the largest share of the funds will be used).

Values

Report monetary amounts on ARF 730.1 in Australian dollars or the Australian dollar equivalent of the foreign currency amount. Convert amounts denominated in foreign currency to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates (AASB 121).

Report values on ARF 730.1 as whole dollars.

Standard Business Reporting (SBR)

Report items on ARF 730.1 with accounting type of debit (assets). The accounting type (i.e. credit or debit) applies to all monetary items and represents the natural accounting type of the item collected.

Specific instructions

Terms highlighted in bold italics are defined in Reporting Standard ARS 701.0 ABS/RBA Definitions for the EFS Collection (ARS 701.0).

All derived fields in the form are shaded in grey and are explained in words as a mathematical expression in these instructions. 

Examples included under ‘Include’ and ‘Exclude’ must not be taken as an exhaustive list of items to be included or excluded. 

1. Fees charged on deposit accounts

Item 1 collects information on fees charged on deposit accounts by counterparty and type of deposit fee. 

Include all fees associated with deposit accounts, including fees on offset accounts.   

2.             Fees charged on loans and finance leases

Item 2 collects information on fees charged on loans and finance leases by counterparty and type of fee.

Include all fees associated with loan accounts and finance leases, including fees on redraw facilities.

Include fees charged on loans and finance leases reported on-balance sheet, regardless of whether the loan or finance lease has been securitised or not (i.e. exclude off-balance sheet securitised loans and finance leases).

Exclude:

• fees on offset accounts.  Report these under item 1;
• fees associated with bills of exchange.  Report these under item 4; and
• fee income on loans held off-balance sheet (outside the scope of domestic books).  

3.             Merchant fees charged

Item 3 collects information on merchant fees charged by counterparty and type of fee.  

4.             Other fees charged

Item 4 collects information on other fees charged by counterparty. 

5.             Total fees charged

Item 5 collects information on total fees charged by counterparty. It is the sum of fees charged reported in items 1, 2, 3 and 4. 

[1] To avoid doubt, if the due date for a particular reporting period falls on a day other than a usual business day, an ADI is nonetheless required to submit the information required no later than the due date.