Approval to hold a stake in a financial sector company of more than 15% - AXA DBIO SCA

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

Financial Sector (Shareholdings) Act 1998

SINCE

 

  1. AXA DBIO SCA and the person(s) named in Schedule 1 (the applicants) have applied for an approval under section 13 of the Financial Sector (Shareholdings) Act 1998 (the Act), to hold a stake of more than 15% in each of the following financial sector companies:

 

  1. Global Group of Australia Pty Limited ABN 94 066 463 107 (GGA);

 

b.      Global Life Reinsurance Company of Australia Pty Limited ABN 73 066 463 018 (GLRC);

 

c.       Assetinsure Holdings Pty Limited  ABN 52 103 489 265 (AHPL); and

 

d.      Assetinsure Pty Limited ABN 65 066 463 803 (APL); and

 

B.     I am satisfied it is in the national interest to approve the applicants holding a stake in each financial sector company of more than 15%,

 

I, Stuart Bingham, a delegate of the Treasurer, under subsection 14(1) of the Act, APPROVE the applicants holding a 100% stake in each of GGA, GLRC, AHPL and APL.

 

 

This Approval commences on the date it is signed and remains in force indefinitely.

Dated: 29 January 2014

 

[Signed]

 

Stuart Bingham

General Manager

Diversified Institutions Division

Interpretation

In this Notice

APRA means the Australian Prudential Regulation Authority.

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 persons (associates of AXA DBIO SCA) who applied for approval

 

AXA SA (France)

AXA Liabilities Managers (France)

AXA DBIO GP (Luxembourg)

CNP Assurances (France)

Industriens Pensionsforsikring A/S (Denmark)

Colisee RE SA (France)

Assetinsure Holdings Pty Limited ABN 52 103 489 265

Assetinsure Pty Limited ABN 65 066 463 803

 

 

Overview

The Financial Sector (Shareholdings) Act 1998 was enacted by the Parliament of Australia to address the need for regulation of significant shareholdings in the financial sector, ensuring that such holdings do not undermine the stability or integrity of the financial system. The Act aims to prevent unacceptable shareholding situations that could pose a risk to the national financial system by controlling the concentration of ownership in financial sector companies. The enactment of this Act underscores the policy objective of safeguarding the financial sector's resilience and protecting consumers by mitigating potential risks associated with large shareholdings. Pursuant to the Act, the Treasurer is empowered to approve or impose conditions on shareholdings exceeding 15% in financial sector companies, as demonstrated in the approval granted to AXA DBIO SCA and its associates to hold a stake in specified companies, reflecting the national interest in maintaining financial stability.

Scope and Application

The Financial Sector (Shareholdings) Act 1998 applies to any person or entity seeking to hold a stake exceeding 15% in a financial sector company. This legislation primarily governs the acquisition and holding of significant stakes in financial institutions to ensure the stability and integrity of Australia's financial system. The Act applies to the Commonwealth and its entities, with jurisdiction extending across all states and territories. The approval process involves the Treasurer or a delegate, who must be satisfied that the shareholding is in the national interest. The Act allows for the imposition of conditions, variations, and revocations of approvals through subordinate instruments, providing flexibility in managing the financial sector's stability. Any person or entity found in breach of the Act's provisions, including recklessly acquiring shares leading to an unacceptable shareholding situation, faces substantial penalties, including fines of up to 400 penalty units for individuals and 2,000 penalty units for corporate bodies. The Act also empowers the Federal Court to grant injunctions against those contravening conditions of an approval.

Key Provisions

The Financial Sector (Shareholdings) Act 1998 (the Act) governs the acquisition and holding of shares in financial sector companies. Specifically, section 13 of the Act requires applicants seeking to hold a stake of more than 15% in financial sector companies to obtain approval from the Treasurer, a delegate of whom is mentioned in the Notice of Approval. This Act defines what constitutes an "unacceptable shareholding situation" in section 10 and provides that a "financial sector company" is one defined under section 3 of the Act. In this case, AXA DBIO SCA and its associates have applied for approval to hold a stake of more than 15% in four financial sector companies: Global Group of Australia Pty Limited, Global Life Reinsurance Company of Australia Pty Limited, Assetinsure Holdings Pty Limited, and Assetinsure Pty Limited. The delegate of the Treasurer, Stuart Bingham, has approved this application, allowing the applicants to hold a 100% stake in each of these companies. This approval is effective from the date it is signed and remains in force indefinitely. It is also noted that the Treasurer can impose, revoke, or vary conditions on the approval under section 16 of the Act. The Act imposes several obligations on the parties it governs. Firstly, it requires the Treasurer to provide written notice of the approval to the applicant and the relevant financial sector company and to publish a copy of this notice in the Gazette, as outlined in section 14 and Note 6. The Act also mandates that an unacceptable shareholding situation does not come into existence without the appropriate approval, as per section 11. Should such a situation occur due to reckless acquisition of shares, the offender faces criminal penalties under section 11, including fines of up to 400 penalty units for individuals and 2,000 penalty units for corporate bodies. Moreover, section 32(3) of the Act allows the Federal Court to grant an injunction against anyone contravening conditions of an approval, at the Treasurer's application. This injunction can restrain the individual or entity from engaging in the prohibited conduct and may also require them to undertake specific actions deemed necessary by the court. The Act further allows the Treasurer to vary the percentage specified in an approval under section 17, either on the Treasurer's initiative or in response to an application by the person holding the approval. Additionally, the Treasurer can revoke an approval under section 18 if certain conditions are met, ensuring ongoing compliance with national interests.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.