Banking (prudential standard) determination No 3 of 2014-Prudential Standard APS 001-Definitions [F2014L01649]-New matters [2015] AUSStaCSDLM 6 (11 February 2015)

• Banking (prudential standard) determination No. 3 of 2014 - Prudential Standard APS 001 – Definitions [F2014L01649]

Banking (prudential standard) determination No. 3 of 2014 - Prudential Standard APS 001 – Definitions [F2014L01649]

Purpose	Determines Prudential Standard APS 001 definitions
Last day to disallow	26 March 2015
Authorising legislation	Banking Act 1959
Department	Treasury

Issue:

Insufficient information regarding consultation

Section 17 of the Legislative Instruments Act 2003 directs a rule-maker to be satisfied that appropriate consultation, as is reasonably practicable, has been undertaken in relation to a proposed instrument, particularly where that instrument is likely to have an effect on business. Section 18, however, provides that in some circumstances such consultation may be unnecessary or inappropriate. The ES which must accompany an instrument is required to describe the nature of any consultation that has been carried out or, if there has been no consultation, to explain why none was undertaken (section 26). With reference to these requirements, the committee notes that the ES states that 'APRA undertook a seven week consultation on the proposed consequential changes from August 2014'. While the committee does not usually interpret section 26 as requiring a highly detailed description of consultation undertaken, its usual approach is to consider an overly bare or general description, such as in this case, as not being sufficient to satisfy the requirements of the Legislative Instruments Act 2003. The committee's expectations in this regard are set out in the 'Guideline on consultation' in Appendix 2 of this report. The committee therefore requests further information from the minister and requests that the ES be updated in accordance with the requirements of the Legislative Instruments Act 2003.