Approval to hold a stake in a financial sector company of more than 15%

Approval to hold a stake in a financial sector company of more than 15%

Financial Sector (Shareholdings) Act 1998

To: The persons listed in schedule 1 (the first applicants) and the persons listed in schedule 2 (the second applicants).

SINCE

1. Each of the first applicants has applied for approval under section 13 of the Financial Sector (Shareholdings) Act 1998 (the Act) to hold a 100% stake in the financial sector companies listed in schedule 3 (the first financial sector companies);

B.     Each of the second applicants has applied for approval under section 13 of the Act to hold a 16.6% stake in Assurant, Inc. (the second financial sector company); and

C.     I am satisfied it is in the national interest to approve the first applicants to hold a 100% stake in the first financial sector companies and I am satisfied it is in the national interest to approve the second applicants to hold a 16.6% stake in the second financial sector company,

I, Stephen Edward Glenfield, a delegate of the Treasurer:

(a)           under subsection 14(1) of the Act, APPROVE the first applicants holding a 100% stake in the first financial sector companies; and

(b)          under subsection 14(1) of the Act, APPROVE the second applicants holding a 16.6% stake in the second financial sector company.

This instrument comes into force on the date it is signed.  The Approval under this instrument remains in force indefinitely.

Dated: 11 May 2018

[Signed]

Stephen Edward Glenfield General Manager

Specialised Institutions Division

South West Region

Interpretation

In this Notice:

financial sector company has the meaning given in section 3 of the Act.

stake in relation to a company, has the meaning given in clause 10 of Schedule 1 to the Act.

unacceptable shareholding situation has the meaning given in section 10 of the Act.

Note 1   Under paragraph 16(2)(a) of the Act, the Treasurer may, by written notice given to a person who holds an Approval under section 14, impose one or more conditions or further conditions to which the Approval is subject. Under paragraph 16(2)(b) of the Act, the Treasurer may revoke or vary any conditions imposed under paragraph 16(2)(a) of the Act or specified in the Notice of Approval. The Treasurer’s powers under subsection 16(2) may be exercised on the Treasurer’s own initiative or an application  made to the Treasurer in accordance with the requirements of subsection 16(4) of the Act, by the person who holds the Approval (see subsection 16(3) of the Act).

Note 2   A person who holds an Approval under section 14 of the Act may apply to the Treasurer under subsection 17(1) of the Act, to vary the percentage specified in the Approval.

Note 3   Under subsection 17(6) of the Act, the Treasurer may, on the Treasurer’s own initiative, by written notice given to a person who holds an Approval under section 14, vary the percentage specified in the Approval if the Treasurer is satisfied it is in the national interest to do so.

Note 4   The circumstances in which the Treasurer may revoke a person’s Approval under section 14 are

set out in subsection 18(1) of the Act.

Note 5   Section 19 of the Act provides for flow-on approvals. If an Approval has been granted for the holding of a stake in a financial sector company and the financial sector company is a holding company for an authorised deposit-taking institution or an authorised insurance company, then an approval is taken to exist for the holding of a stake of equal value in each financial sector company that is a 100% subsidiary of the holding company.

Note 6   Under section 14 of the Act, the Treasurer must give written notice of this Approval to the applicant and financial sector company concerned and must publish a copy of this notice in the Gazette.

Note 7   Under section 11 of the Act, a person or 2 or more persons under an arrangement are guilty of an offence if the person(s) acquires shares in a company and the acquisition has the result, in relation to a financial sector company, that:

(i)          an unacceptable shareholding situation comes into existence; or

(ii) if an unacceptable shareholding situation already exists in relation to the company and in relation to a person – there is an increase in the stake held by the person in the company;

and the person(s) was reckless as to whether the acquisition would have that result. A maximum penalty of 400 penalty units applies or by virtue of subsection 4B(3) of the Crimes Act 1914, in the case of a body corporate, a penalty not exceeding 2,000 penalty units. By virtue of section 39 of the Act, an offence against section 11 is an indictable offence.

Note 8   Under section 32(3) of the Act, if a person has engaged in or is proposing to engage in any conduct in contravention of a condition to which an approval under section 14 is subject, the Federal Court may, on the application of the Treasurer, grant an injunction:

(i)          restraining the person engaging in the conduct; and

(ii)         if in the court’s opinion, it is desirable to do so, requiring the person to do something.

SCHEDULE 1 – the applicants who applied for approval for a 100% stake in the financial sector companies in schedule 3

1.   David Bonderman

2.   James Coulter

3.   TPG Advisors VI-AIV Inc.

4.   TPG VI Wolverine, LP

5.   TPG VI Wolverine Co-Invest, LP

6.   Assurant, Inc.

7.   Wolverine InterCo., Inc.

8.   Wolverine Acquisitions, Inc.

9.   The Warranty Group, Inc.

10.  TWG Holdings, Inc.

SCHEDULE 2 – the applicants who applied for a 16.6% stake in the second financial sector company

1.   David Bonderman

2.   James Coulter

3.   TPG Advisors VI-AIV Inc.

4.   TPG VI Wolverine, LP

5.   TPG VI Wolverine Co-Invest, LP

SCHEDULE 3 –the first financial sector companies

1. Wolverine InterCo., Inc.
2. Wolverine Acquisitions, Inc.
3. The Warranty Group, Inc.
4. TWG Holdings, Inc.
5. Virginia Surety Company, Inc.