Source: https://www.legislation.gov.au/Details/C2018A00142
Timestamp: 2020-01-22 13:23:02
Document Index: 205185602

Matched Legal Cases: ['art 2', 'art 1', 'art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 6', 'art 6', 'art 1', 'art 2']

Details: C2018A00142
- C2018A00142
Act No. 142 of 2018 as made
An Act to amend the law in relation to the financial sector, and for related purposes
Originating Bill: Treasury Laws Amendment (Financial Sector Regulation) Bill 2018
Registered 30 Nov 2018
Date of Assent 29 Nov 2018
C2018A00142
No. 142, 2018
Schedule 1—Restrictions on shareholdings 3
Financial Sector (Shareholdings) Act 1998 3
Part 2—Application and transitional provisions 17
Schedule 2—Limited banking licences 20
Part 1—Authority to carry on banking business for a limited time 20
Banking Act 1959 20
Part 2—Miscellaneous amendments 23
Banking Act 1959 23
[Assented to 29 November 2018]
This Act is the Treasury Laws Amendment (Financial Sector Regulation) Act 2018.
The first 1 January, 1 April, 1 July or 1 October to occur after the end of the period of 2 months beginning on the day this Act receives the Royal Assent.
Schedule 1—Restrictions on shareholdings
3 Division 2 of Part 2 (heading)
4 Paragraph 10(a)
5 Division 3 of Part 2 (heading)
8 After subsection 13(1)
9 Before paragraph 13(2)(a)
10 Paragraph 13(2)(a)
Omit “financial sector company”, substitute “company concerned”.
11 Paragraph 13(2)(d)
After “prescribed fee”, insert “(if any)”.
13 Paragraph 14(2)(c)
Before “either”, insert “if the application is granted under paragraph (1)(a)—”.
14 At the end of subsection 14(2)
; and (d) if the application is granted under paragraph (1)(b)—specify that the approval remains in force for the period worked out under section 15A.
15 At the end of subsection 14(4)
; and (c) in the case of an approval granted under paragraph (1)(b), if the company concerned is not the relevant licensed company for the approval—given to the relevant licensed company for the approval.
16 After section 14
17 Section 15 (at the end of the heading)
Add “granted on national interest grounds”.
18 Subsection 15(1)
Omit “section 14”, substitute “paragraph 14(1)(a)”.
19 At the end of subsection 15(1)
20 Subsection 15(2)
21 Paragraph 15(3)(b)
22 After section 15
23 At the end of paragraph 16(2)(b)
; or (iii) to which the approval is subject under section 16A.
24 Paragraph 16(4)(b)
25 After section 16
26 Paragraph 17(2)(d)
27 At the end of subsection 18(1)
; or (d) if the approval was granted under paragraph 14(1)(b)—the person is no longer a fit and proper person to hold the approval.
28 Section 19 (at the end of the heading)
Add “—approval granted on national interest grounds”.
29 Paragraph 19(1)(a)
30 Paragraph 19(1)(a)
31 Subsection 19(3)
Omit “section 14” (first occurring), substitute “paragraph 14(1)(a)”.
32 Subsection 19(3)
33 After section 19
34 At the end of section 20
35 After Division 3 of Part 2
36 Division 4 of Part 2 (heading)
37 Subparagraph 23(1)(b)(ii)
38 Subparagraph 24(1)(c)(ii)
39 Subparagraphs 25(1)(c)(ii) and (f)(ii)
40 Part 6 (after the heading)
41 At the end of Part 6
42 Subsection 44(1)
43 Paragraph 44(1)(a)
Omit “(the Australian Prudential Regulation Authority)”.
44 After subsection 44(1)
45 After section 45
46 Sections 48 and 49
47 Paragraphs 4(1)(j) and (k) of Schedule 1
48 Transitional—existing approvals to hold a stake of more than 20%
(1) This item applies to an approval under section 14 of the Financial Sector (Shareholdings) Act 1998 that:
(a) is in force immediately before the commencement of this item; and
(b) approves a person to hold a stake in a financial sector company of more than 20%.
(2) The approval has effect, after the commencement of this item, as if it had been granted under paragraph 14(1)(a) of the Financial Sector (Shareholdings) Act 1998 as substituted by this Schedule.
(3) If an application mentioned in subitem (4):
(a) was made in relation to the approval before the commencement of this item; and
(b) is pending immediately before the commencement of this item;
the application continues to have effect, after the commencement of this item, in relation to the approval.
(4) For the purposes of subitem (3), the following are the applications under provisions of the Financial Sector (Shareholdings) Act 1998:
(a) an application under subsection 15(2) for an extension of the period of an approval;
(b) an application under paragraph 16(3)(b) in relation to the conditions to which an approval is subject;
(c) an application under subsection 17(1) to vary the percentage specified in an approval.
49 Transitional—existing approvals to hold a stake of more than 15% but not more than 20%
(b) approves a person to hold a stake in a financial sector company of more than 15% but not more than 20%.
(2) Subject to subitem (3), the approval ceases to have effect on and after the commencement of this item.
(a) before the commencement of this item, an application under section 17 of the Financial Sector (Shareholdings) Act 1998 was made in relation to the approval to vary the percentage specified in the approval upwards to a percentage of more than 20%; and
(b) the application is pending immediately before the commencement of this item;
(c) the approval has effect, after the commencement of this item, as if it had been granted under paragraph 14(1)(a) of the Financial Sector (Shareholdings) Act 1998 as substituted by this Schedule; and
(d) the application continues to have effect, after that commencement, in relation to the approval; and
(e) if the application is refused—the approval ceases to have effect from the time of refusal.
50 Transitional—pending application for approval to hold a stake of more than 20%
(1) This item applies to an application under section 13 of the Financial Sector (Shareholdings) Act 1998 that:
(a) was made before the commencement of this item; and
(b) is seeking approval to hold a stake of more than 20% in a financial sector company; and
(c) is pending immediately before the commencement of this item.
(2) The application has effect, after the commencement of this item, as if the application:
(a) had been made under section 13 of the Financial Sector (Shareholdings) Act 1998 as amended by this Schedule; and
(b) specified that the applicant is seeking for the approval to be granted on the basis of paragraph 14(1)(a) of the Financial Sector (Shareholdings) Act 1998.
51 Transitional—pending application for approval to hold a stake of more than 15% but not more than 20%
(b) is seeking approval to hold a stake of more than 15%, but not more than 20%, in a financial sector company; and
(2) On the commencement of this item, the application is taken never to have been made.
52 Application of amendment—notice requiring further information about applications
Subsections 20(4) and (5) of the Financial Sector (Shareholdings) Act 1998, as added by this Schedule, do not apply in relation to a notice given under subsection 20(2) of that Act before the commencement of this item.
Schedule 2—Limited banking licences
Part 1—Authority to carry on banking business for a limited time
1 After paragraph 9A(2)(j)
; (k) if the section 9 authority is to cease to have effect on a day specified in the authority—it is unlikely to be appropriate, at or before that day, to grant the body corporate a section 9 authority that is not subject to a time limit.
2 Subparagraph 9A(3)(a)(iii)
(iii) of the date by which any submissions must be made; and
3 After subsection 9A(3)
(3A) The date mentioned in subparagraph (3)(a)(iii) must be:
(a) at least 90 days after the notice under paragraph (3)(a) of this section was given; or
(b) if the section 9 authority is to cease to have effect on a day specified in the authority—at least 21 days after the notice under paragraph (3)(a) of this section was given.
4 Paragraph 9A(8)(b)
(b) a decision to revoke a body corporate’s section 9 authority, unless:
(i) APRA has determined, under subsection (4), that the procedures in subsection (3) do not apply; or
(ii) the section 9 authority is an authority that is to cease to have effect on a day specified in the authority.
5 After section 9C
9D Authority to carry on banking business for a limited time
(1) An application under subsection 9(2) may state that the application is for an authority to carry on banking business in Australia for a limited time.
(2) If APRA grants an authority under subsection 9(3) as a result of an application made in accordance with subsection (1) of this section:
(a) the authority must state that it ceases to have effect on a day specified in the authority; and
(b) the authority ceases to have effect at the start of that day (except to the extent, if any, that it is continued in effect under subsection 9A(5A) or section 9F, or extended under section 9E), unless it is revoked earlier.
(3) The day specified in the authority under paragraph (2)(a) must be:
(a) 2 years after the day APRA grants the authority; or
(b) if APRA considers that another day is appropriate—that other day.
(4) Despite subsection 9(6), Part VI does not apply to a decision to refuse an application made in accordance with subsection (1) of this section, or to a decision to specify a particular day in the authority under paragraph (2)(a) of this section.
Application for authority not subject to time limit
(5) A section 9 authority granted to a body corporate as a result of an application made in accordance with subsection (1) does not prevent the body corporate making, under section 9, a further application for an authority that is not subject to a time limit.
(6) If APRA decides to grant such an application, APRA may do so by varying the section 9 authority to remove the time limit that applies to the authority under subsection (2).
9E Authority to carry on banking business in Australia for a limited time—extension
(1) This section applies to a body corporate’s section 9 authority if the authority is to cease to have effect on a day (the expiry day) specified in the authority.
(2) APRA may, at any time before the expiry day, vary the authority to change the expiry day to a later day.
(3) If APRA does so, APRA must:
(b) ensure that notice that the variation has been made is published in the Gazette.
(4) A failure to comply with subsection (3) does not affect the validity of the variation.
9F Authority to carry on banking business in Australia for a limited time—continuation after expiry
(2) APRA may, at any time before the expiry day, give the body corporate a written notice stating that the authority continues in effect, on and after the expiry day, in relation to a specified matter or specified period for the purposes of:
(a) a specified provision of this Act or the regulations; or
(b) a specified provision of another law of the Commonwealth that is administered by APRA; or
(c) a specified provision of the prudential standards;
and the statement has effect accordingly.
Part 2—Miscellaneous amendments
6 Paragraphs 11AF(7A)(a) and (b)
7 Paragraph 11AF(7C)(a)
House of Representatives on 28 June 2018
Senate on 21 August 2018]