Recent changes to the Financial Sector (Collection of Data) Act mean corporations involved in providing finance, even if it is not their principal business, may need to register with and report to the Australian Prudential Regulation Authority (APRA) by 4 May 2018.
The recent changes to the Act broaden the definition of "registrable corporation". This is particularly relevant to non-authorised deposit-taking institutions (non-ADIs) which may be engaged in lending activities in Australia. It may also mean trustees of mortgage funds will be obliged to register and report to APRA if they are deemed to be a registerable corporation.
The new limited exemption means any corporation engaged in the provision of finance in the course of carrying on business in Australia will be a 'registrable corporation' if—
The 'provision of finance' is very broadly defined in the Act, and includes lending money with or without security. It does not include providing financial advice or intra-group financing activity between related corporations.
Importantly, APRA will treat each related corporation as being part of the relevant lender corporation for the purposes of determining whether the $50 million thresholds have been exceeded.
Registrable corporations must register and provide documentation to APRA by 4 May 2018.
Our Funds Management Team can provide more information about these changes and explain how the changes affect you.