Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697646549231.pdf (Australia)
9/7/2020 Senate Standing Committees on Economics PO Box 6100 Parliament House Canberra ACT 2600 Dear Committee Secretary and Senators, Submission to Banking Amendments (Deposits) Bill 2020 This submission is made in the capacity of a private citizen and constituent of the Federal Electorate of Canning (WA).

I support the proposed Banking Amendments (Deposits) Bill 2020.

Background to Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018 (“Crisis Powers Act”).
1) The Financial Stability Board recommended G20 countries introduce Bank Resolution or “Bail In” legislation in the post GFC era and most G20 countries have complied with unambiguous legislation eg, Canada, UK.

New Zealand also has transparent Bail In laws in place.

It would be out of step with the G20 and the FSB requirements not to have Bail In law in Australia.
2) The Crisis Powers Act legislation was passed “on the voices” on Valentine’s day 2018 when only 7 senators were present in the chamber, and when a minor party was drafting amendments to the proposed legislation and understood the Government was awaiting these amendments before tabling the bill.

3) The Crisis Powers Act legislation is very broad, but ambiguous as to whether the Bail In powers include the ability to confiscate depositors’ funds.
4) The Government has contacted some concerned members of the community and advised them that it only includes depositors’ funds if the Banks have advised customers this in their Terms and Conditions.

A review of the big 4 banks Terms and Conditions identifies that the banks may change the Ts & Cs, with no consultation or agreement by Customers, and may also back date the effective date of the change.
5) As such my analysis and conclusion is that depositors funds may be lawfully confiscated by banks facilitated by APRA under the Crisis Powers Act .
6) I am aware of a Legal review which concluded that depositors’ funds may be lawfully confiscated by banks facilitated by APRA under the Crisis Powers Act (attached) 7) I am aware of the views expressed by Senator Stoker, a former barrister; “The legislation facilitates bail-in as a type of resolution power which is available for dealing with financial institution distress.

This was done after the G20 leaders endorsed a new Financial Stability Board standard for Total Loss-absorbing Capacity.
Specifically, it builds on the Key Attributes which specifies that Financial Stability Board jurisdictions should have in place legally enforceable mechanisms to implement a bail-in.

The purpose of the Total Loss- Banking Amendment (Deposits) Bill 2020Submission 165 Banking Amendment (Deposits) Bill 2020Submission 165