Consent to use restricted expressions Class Consent Building Societies, Credit Unions and Trustees of Superannuation Entities Banking Act 1959 (Cth)

Banking Act 1959

CONSENT

TO USE RESTRICTED EXPRESSIONS

CLASS CONSENT:          ·   BUILDING SOCIETIES AND CREDIT UNIONS

·   TRUSTEES OF SUPERANNUATION ENTITIES

I, Graeme John Thompson, Chief Executive Officer of, and a delegate of the Board of, the Australian Prudential Regulation Authority (APRA):

• under paragraph 66(2)(c) of the Banking Act 1959 (the Banking Act), REVOKE all consents conferred on transferred bodies by item 8 of Schedule 8 of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No 1) 1999 (the Transitional Act); and

• under paragraphs 66(1)(d) and 66(2)(a) of the Banking Act, CONSENT to the use of the following restricted expressions:

bank

banker

banking

building society

credit union

credit society

credit co-operative (being an expression specified in a determination dated 28 June 1999 in force under subsection 66(5) of the Banking Act)

in the circumstances, and subject to the conditions, specified below.

Building societies and credit unions

1. A Building Society may use the expression building society in relation to its financial business which it carries on in the capacity of a building society.

2.A Credit Union may use the expressions credit union, credit society and credit co-operative in relation to its financial business which it carries on in the capacity of a credit union.

1. A Building Society or Credit Union may use the expression banking in relation to its banking activities.

1. A body corporate that is related to a Building Society may use the expression building society in relation to the financial business which the Building Society carries on in the capacity of a building society, if the condition in clause 7 is satisfied.

1. A body corporate that is related to a Credit Union may use the expressions credit union, credit society and credit co-operative in relation to the financial business which the Credit Union carries on in the capacity of a credit union, if the condition in clause 7 is satisfied.

1. A body corporate that is related to a Building Society or Credit Union may use the expression banking in relation to the banking activities of the Building Society or Credit Union, if the condition in clause 7 is satisfied.

7.The condition is that the expression is not used in a misleading or deceptive way (for example, so as to suggest that the body corporate that is related to the Building Society or Credit Union is authorised to act as a building society or credit union, or to engage in banking activities, where that is not the case).

Trustees of superannuation entities

1. A trustee of a superannuation entity all the members of which are officers or employees, or former officers or employees, of an ADI may use the ADI’s name as part of:

(a)   the trustee’s name; and

(b)   the superannuation entity’s name;

despite the fact that the ADI’s name contains the expression bank, banker, banking, credit union, credit society or credit co-operative, if the conditions in clause 9 are satisfied.

1. The conditions are:

(a) the ADI is permitted to use the expression as part of its name by this instrument or by another consent in force under section 66 of the Banking Act; and

(b)   the ADI’s name is not used in a misleading or deceptive way (for example, so as to suggest that the trustee or the superannuation entity is a bank, building society or credit union where that is not the case).

[NOTE:     Nothing in clauses 8 and 9 is intended to authorise any act that infringes a person’s rights under, or contravenes, any other law.]

Interpretation

1. In this instrument:

ADI:

(a) means an authorised deposit-taking institution in relation to which an authority under subsection 9(3) of the Banking Act is in force; and

(b) for the avoidance of doubt, includes a transferred body whose authority under subsection 9(3) of the Banking Act has not been revoked;

banking activities means:

(a)   both taking money on deposit (otherwise than as part-payment for identified goods or services) and making advances of money; and

(b)   any other financial activities prescribed by regulations for the purposes of the definition of banking business in subsection 5(1) of the Banking Act; and

(c)   financial activities incidental to the activities mentioned in paragraphs (a) and (b);

Building Society means a body corporate whose name appears under the heading “Building Societies” in the list of authorised deposit-taking institutions published on APRA’s website;

Credit Union means a body corporate whose name appears under the heading “Credit Unions” in the list of authorised deposit-taking institutions published on APRA’s website;

holding company, in relation to a body corporate, means a body corporate of which the first-mentioned body corporate is a subsidiary;

subsidiary, in relation to a body corporate, means a subsidiary of the body corporate within the meaning of Division 6 of Part 1.2 of the Corporations Law;

superannuation entity means:

(a)   a regulated superannuation fund; or

(b)   an approved deposit fund; or

(c)   a pooled superannuation trust;

within the meaning of the Superannuation Industry (Supervision) Act 1993;

transferred body means a transferring body (within the meaning of Schedule 8 of the Transitional Act) which is taken to have been granted an authority under subsection 9(3) of the Banking Act by virtue of subitem 7(3) of Schedule 8 of the Transitional Act;

trustee, in relation to a superannuation entity, means:

(a)   if there is a trustee (within the ordinary meaning of that expression) of the superannuation entity – the trustee; or

(b)   in any other case – the person who manages the superannuation entity;

a body corporate is related to a Building Society or Credit Union if the body corporate is:

(a)     a holding company of; or

(b)     a subsidiary of; or

(c)     a subsidiary of a holding company of;

the Building Society or Credit Union.

Commencement

1. This instrument comes into force on the date on which it is notified in the Gazette.

[NOTE: By virtue of section 66 of the Banking Act, a person (whether an individual, a body corporate or a body politic) must not use the expressions bank, banker, banking, credit union, credit society and credit co-operative in relation to a financial business carried on by the person except as permitted by:

· section 66 of the Banking Act; or

· a consent in force under section 66 of the Banking Act.]

Dated 19 May 2000

[Signed]

G J Thompson

Chief Executive Officer