Regulation Impact Statement – Department of the Treasury
On 19 October 2017 the Government introduced the Treasury Laws Amendment (Banking Measures No 1) Bill 2017 to Parliament.
The Bill amends the Banking Act 1959 to provide the Australian Prudential Regulation Authority (APRA) with the power to make rules that would apply to the provision of finance by lenders that are not Authorised deposit-taking institutions (non-ADI lenders). In the first instance, non-ADI lenders that meet appropriate criteria will need to register with APRA. APRA would also have the power to make other rules applying to non-ADI lenders to promote financial system stability should circumstances warrant.
A Regulation Impact Statement (RIS) was prepared and certified by the Department of the Treasury and has been assessed as compliant with the Government’s requirements and consistent with best practice.
The RIS estimates that the preferred option will have an annual average regulatory cost of $1.2 million. The OBPR agreed with this estimate.