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

Administered by Department of the Treasury

Legislation au C2014G01501 In force Gazette

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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. AAI Limited ABN 48 005 297 807 and the person(s) named in the attached Schedule (the applicants) have applied to the Treasurer under section 13 of the Financial Sector (Shareholdings) Act 1998 (the Act), for approval to hold a stake of more than 15% in MTA Insurance Limited ABN 50 070 583 701 (the Company), a financial sector company under the Act; and

 

B.                 I am satisfied that it is in the national interest to approve the applicants holding a stake in the Company of more than 15%,

 

I, Robyn McMahon, a delegate of the Treasurer, under subsection 14(1) of the Act, APPROVE the applicants holding a stake in the Company of 100 %.

 

This Approval commences on the date it is signed and remains in force indefinitely. Dated: 22 August 2014

[Signed]

Robyn McMahon General Manager

Diversified Institutions Division

Interpretation Document ID: 214143

 

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 condition imposed under paragraph 16(2)(a) of the Act or specified in the Notice of Approval. The Treasurer’s power under subsection 16(2) of the Act may be exercised on the Treasurer’s own initiative or on 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 may apply to the Treasurer under section 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 that 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.

Schedule - the person(s) who applied for approval

 

 

ABBI Pty Ltd ABN 87 099 692 618

ACM Parts Pty Ltd ABN 78 165 321 979

All States Auto Management Pty Ltd ABN 21 050 238 036

Amy Corporation Pty Ltd ABN 15 050 238 009

APUA Pty Ltd ABN 16 090 661 528

Asteron Life Pty Limited ABN 64 001 698 228

Asteron Pty Limited ABN 94 000 015 949

Australian Alliance Insurance Company Pty Limited ABN 11 006 471 709

Australian Associated Motor Insurers Pty Limited ABN 92 004 791 744

Australian Pensioners Insurance Agency Pty Limited ABN 14 099 650 996

Aviation Office of Australia Pty Ltd ABN 19 002 490 584

Bingle.com Pty Limited ABN 93 121 114 574

Capital S.M.A.R.T. Repairs Australia Pty Ltd ABN 47 143 462 748

FN Financial Solutions Pty Limited ABN 13 060 574 432

GIO Australia Pty Limited ABN 78 052 179 996

GIO General Pty Limited ABN 22 002 861 583

GIO Insurance Investment Holdings A Pty Limited ABN 48 082 094 291

GIO Workers' Compensation (NSW) Pty Limited ABN 79 054 523 698

GIO Workers' Compensation (Victoria) Pty Limited ABN 30 060 346 509

Graham & Company Pty Limited ABN 87 010 513 907

Guardian Financial Planning Pty Limited ABN 17 000 036 626

InsureMyRide Pty Limited ABN 75 121 676 293

Just Car Insurance Agency Pty Ltd ABN 41 050 238 563 Just Home Insurance Agency Pty Ltd ACN 050 238 572

Medical & Commercial Finance Corporation Pty Limited ABN 85 010 038 865

National Finance Network Pty Limited ABN 44 010 676 178

National Marine Insurance Agency Pty Limited ABN 77 000 746 083

NTI Limited ABN 84 000 746 109

Promequity Pty Limited ABN 24 004 061 116

Promfound Pty Limited ABN 37 077 577 336

QIDC Pty Ltd ABN 95 075 437 544

QPlus Production Pty Ltd ABN 66 158 065 082

RACT Insurance Pty Ltd ABN 96 068 167 804

Repair Methods Australia Pty Ltd ABN 18 091 918 231

Resilium Pty Limited ABN 40 098 080 810

SBGH Limited ABN 83 145 980 838

Shannons Auctions Limited ABN 83 099 665 497

Shannons Pty Limited ABN 91 099 692 636

SIS Super Pty Ltd ABN 19 064 490 820

Skilled Drivers of Australia Limited ABN 71 005 918 301

SME Management Pty Limited ABN 21 084 490 166

SPDEF #2 Pty Ltd ABN 34 122 256 820

SPDEF Pty Ltd atf SPDEF Trust ACN 107 349 011 SUN Litigation Pty Ltd ABN 14 114 603 413

Suncorp Corporate Services Pty Ltd ABN 69 074 966 466

Suncorp Custodian Services Pty Ltd ABN 85 010 421 931

Suncorp Finance Pty Limited ABN 54 009 705 417

Suncorp Funds Pty Ltd ACN 153 008 354 Suncorp Group Holdings (NZ) Ltd

Suncorp Group Limited ABN 66 145 290 124 Suncorp Group Services NZ Limited

Suncorp Insurance (General Overseas) Pty Ltd ABN 49 102 606 708

Suncorp Insurance (Life Overseas) Pty Ltd ABN 66 114 577 418

Suncorp Insurance Funding 2007 Limited ABN 57 124 205 330

Suncorp Insurance Holdings Limited ABN 99 123 023 334

Suncorp Insurance Services Limited (formerly Promgroup Limited) ABN 79 000 746 092

Suncorp Insurance Ventures Pty Ltd ACN 158 182 042

Suncorp Life & Superannuation Limited ABN 87 073 979 530

Suncorp Life Holdings Limited ABN 87 064 490 795

Suncorp Metway Advances Corporation Pty Ltd ABN 89 100 845 127

Suncorp Metway Insurance Pty Limited ABN 83 075 695 966

Suncorp Portfolio Services Limited ABN 61 063 427 958

Suncorp Security Services Limited ABN 67 002 977 237

Suncorp Staff Pty Ltd ABN 31 010 869 726

Suncorp Superannuation Administration Services Pty Ltd ACN 109 269 212 Suncorp-Metway Limited ABN 66 010 831 722

Taurus Trade Finance Pty Ltd ABN 82 120 567 866

Terri Scheer Insurance Pty Ltd ABN 76 070 874 798

Vero Surety Pty Limited ABN 85 101 110 703

Overview

The Financial Sector (Shareholdings) Act 1998 was enacted to address the problem of potentially harmful concentrations of ownership in the financial sector. The Australian Parliament established this Act to regulate shareholdings in financial sector companies, ensuring that such shareholdings do not threaten the stability and integrity of the financial system. The policy objective of the Act is to maintain a robust and stable financial sector by preventing unacceptable shareholding situations where they might undermine the resilience of financial institutions. The Act allows the Treasurer to approve, impose conditions on, vary, or revoke approvals for shareholdings exceeding specified thresholds, thereby providing a regulatory framework to safeguard against undue concentrations of ownership that could pose systemic risks. In this context, Robyn McMahon, a delegate of the Treasurer, has approved AAI Limited and several other entities listed in the attached Schedule to hold a 100% stake in MTA Insurance Limited. This approval, effective from the date of signing, is considered to be in the national interest and will remain in force indefinitely, subject to any future conditions or variations imposed by the Treasurer.

Scope and Application

The Financial Sector (Shareholdings) Act 1998 applies to any person or group of persons seeking to acquire, directly or indirectly, a stake of more than 15% in a financial sector company, as defined by the Act. The Act covers a range of financial entities, including authorised deposit-taking institutions and authorised insurance companies, and its application is not limited to any specific geographic region within Australia. The Act aims to ensure that significant shareholdings in these entities do not compromise the stability or integrity of the financial sector. The Act includes provisions for the Treasurer to approve or impose conditions on such shareholdings, with the overarching goal of maintaining national financial security. While the Act generally applies to all financial sector companies within Australia, it may be subject to modifications through subordinate legislation, allowing for the introduction of new conditions or adjustments to existing ones as necessary. The Act also delineates specific exclusions and exemptions, which may be detailed in subsidiary legislation, and outlines circumstances under which the Treasurer can revoke or vary existing approvals.

Key Provisions

The Financial Sector (Shareholdings) Act 1998 (the Act) includes various key provisions that govern the approval of shareholdings in financial sector companies. Section 13 of the Act mandates that any individual or entity seeking to hold a stake of more than 15% in a financial sector company must apply to the Treasurer for approval. Section 14 empowers the Treasurer to grant such approval if satisfied that it is in the national interest. In this case, Robyn McMahon, as a delegate of the Treasurer, has granted approval under section 14 to AAI Limited and the other applicants named in the Schedule to hold a stake of up to 100% in MTA Insurance Limited, effective from the date of signing. The Act imposes several obligations on the parties it governs. Under section 11, any person or group of persons must not acquire shares in a company if it would result in an unacceptable shareholding situation, either by creating such a situation or increasing an existing one, unless they are reckless as to the outcome. This requirement is critical to maintaining the integrity and stability of the financial sector. Furthermore, the Treasurer, under section 14, must notify the applicant and the financial sector company of the approval and publish it in the Gazette. The Act also delineates specific offences and penalties for non-compliance. Section 11 establishes that any person or group of persons who violate the shareholding provisions by recklessly acquiring shares resulting in an unacceptable shareholding situation commits an offence. The penalty for an individual is up to 400 penalty units, while for a body corporate, the penalty can be up to 2,000 penalty units, as per subsection 4B(3) of the Crimes Act 1914. Additionally, section 39 classifies an offence under section 11 as an indictable offence, which means it can be prosecuted in a higher court. The Treasurer also retains the authority to impose, revoke, or vary conditions on the approval under sections 16 and 17, ensuring ongoing compliance and adaptability of the regulatory framework.

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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.