Document ID: chunk:federal_register_of_legislation:F2018L01253:body:0:p1
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Banking exemption No. 2 of 2018

Banking Act 1959

I, Pat Brennan, a delegate of APRA:

(a)                under subsection 11(4) of the Banking Act 1959 (the Act), REVOKE Banking exemption No. 1 of 2015 made on 18 March 2015;

(b)               under subsection 11(1) of the Act, DETERMINE that section 8 of the Act does not apply to a registered entity that complies with the conditions specified in the attached Schedule.

This instrument takes effect upon registration on the Federal Register of Legislation.

Dated:    31 August 2018

[Signed]

Pat Brennan
Executive General Manager
APRA

Interpretation

In this Notice

APRA means the Australian Prudential Regulation Authority.

Note 1 This determination is a legislative instrument (see subsection 11(6) of the Act).

Note 2  Under subsection 8(1) of the Act, a body corporate is guilty of an offence if it carries on any banking business in Australia, the body corporate is not the Reserve Bank or an authorised deposit-taking institution and there is no determination in force under section 11 of the Act that subsection 8(1) does not apply to the body corporate.  The maximum penalty is 200 penalty units. By virtue of subsection 8(2) of the Act, an offence against subsection 8(1) is an indictable offence. Under subsection 8(3) of the Act, if a body corporate commits an offence against subsection 8(1), the person is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day).

Note 3 Under subsection 11(1) of the Act, APRA may, in writing, determine that any or all of the provisions of the Act referred to in paragraphs 11(1)(a) to (e) do not apply to a person while the determination is in force.

Note 4 Under subsection 11(2) of the Act, a determination under subsection 11(1) may be expressed to apply to a particular person or to a class of persons, may specify the period during which the determination remains in force and may be made subject to conditions.

Note 5 Under subsection 11(4) of the Act, APRA may, in writing, vary or revoke a determination made under section 11.

Schedule of conditions

Restriction on issuing at-call products

     1.  Where a registered entity offers, issues or sells a debenture to a retail investor:

      (a)      the debenture must have a maturity period of at least 31 days;  and

      (b)     subject to Condition 3, the retail investor must not be able to redeem any funds for 31 days from the date they are invested in the debenture.

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