Approval to hold a stake in a financial sector company of more than 15% - Quaker Partners LLC (5071296, Delaware, USA)

Administered by Department of the Treasury

Legislation au C2014G00377 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

To: Quaker Partners LLC (5071296, Delaware, USA) (Quaker) and the persons named in the attached Schedule (its associates)

 

SINCE

 

  1. Quaker and its associates 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 companies, each a financial sector company under the Act:

 

(a)   Quaker; and

(b)   LFI Group Pty Ltd ABN 31 138 903 581 (LFI), and

 

B.                 I am satisfied it is in the national interest to approve Quaker and each of its associates to hold a stake in each financial sector company of more than 15%,

 

I, Brandon Kong Leong Khoo, a delegate of the Treasurer, under subsection 14(1) of the Act, APPROVE Quaker and each of its associates to hold a stake in each financial sector company of 100%.

 

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

 

Dated: 20 February 2014

 

[Signed]

 

 

Stephen Glenfield

Acting Executive General Manager

Specialised Institutions Division

 


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 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 2 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 3 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 4 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 5 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 6 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 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 – Associates of Quaker

 

US Trust Company of Delaware (3185789, Delaware, USA) as trustee of the Ma Family Trust
Cooperative Minerva and Artemis Holdings UA (34228087, Netherlands)

Zayucel Limited (14613, British Virgin Islands)

Isocrates Limited (123699, British Virgin Islands) as trustee of the Isocrates Trust

Sherman Ma

 

Assured Credit Management Pty Ltd ABN 23 096 859 782

Beat Association Limited ABN 48 122 079 994

Beat Services Pty Ltd ABN 65 121 451 803

Hestia Holdings Sarl (Luxembourg)

Jupiter Holdings BV (Netherlands)

Juno Holdings Sarl (Luxembourg)

LFI

Liberty Credit Enhancement Company NZ Limited (New Zealand)

Liberty Credit Enhancement Company Pty Ltd ACN 107 301 646

Liberty Fiduciary Ltd ABN 80 119 884 623

Liberty Financial Limited (New Zealand)

Liberty Financial Pty Ltd ABN 55 077 248 983

Liberty Funding Limited (New Zealand)

Liberty Funding Pty Ltd ABN 49 128 856 422

Liberty Network Services Pty. Ltd. ABN 65 151 158 628

Loannet Pty Ltd ABN 18 077 898 027

Minerva Financial Group Pty Limited ABN 43 124 171 759

Minerva Funding Pty Ltd ACN 150 500 271

Minerva Funds Management Limited ABN 81 119 873 282

Minerva Technology Pty Ltd ABN 59 125 611 574

MPMH Limited (New Zealand)

Mike Pero Group Limited (New Zealand)

Mike Pero Mortgages Limited (New Zealand)

Mike Pero (New Zealand) Limited (New Zealand)

Mike Pero Insurances Limited (New Zealand)

Secure Credit Pty Ltd ABN 45 124 171 768

Secure Funding Pty Ltd ABN 25 081 982 872

Secure Funding Limited (New Zealand)

Trail Finance Group Pty Ltd ACN 143 003 758

Vesta Financial BV (Netherlands)

Vesta Funding BV (Netherlands)

Overview

The Financial Sector (Shareholdings) Act 1998 was enacted to regulate and control the shareholdings in Australian financial sector companies, ensuring that such stakes do not undermine the stability and integrity of the financial system. The Act was introduced to address concerns about the potential risks associated with significant shareholdings in financial institutions, particularly those that could lead to unacceptable shareholding situations. Enacted by the Australian Parliament, the policy objective of the Act is to maintain the soundness and resilience of financial institutions by preventing excessive concentration of ownership and control. The Act grants the Treasurer the authority to approve or disapprove shareholdings exceeding a certain threshold, thereby providing a regulatory framework to manage and mitigate risks associated with large shareholdings in the financial sector.

Scope and Application

The Financial Sector (Shareholdings) Act 1998 applies to entities seeking approval to hold a stake exceeding 15% in financial sector companies. The act governs the acquisition and holding of shares in financial sector companies, ensuring that such holdings do not pose a risk to the national financial system. This legislation applies to both domestic and foreign entities, and its jurisdictional reach is national, covering the entire Commonwealth of Australia. The act provides for the Treasurer to approve or reject applications for shareholdings above 15%, and such approvals can be subject to conditions or further conditions, which can be imposed, revoked, or varied by the Treasurer. The act also allows for the variation of the percentage specified in an approval, either at the initiative of the Treasurer or through an application by the entity holding the approval. In the case of Quaker Partners LLC and its associates, the approval granted under the act permits them to hold a stake of up to 100% in specified financial sector companies, effective from the date of signing and remaining in force indefinitely unless otherwise revoked or varied.

Key Provisions

The primary sections of the Financial Sector (Shareholdings) Act 1998 (the Act) relevant to this Notice include section 13, which pertains to the application for approval to hold a stake in a financial sector company exceeding 15%. Section 14 grants the Treasurer the authority to approve or decline such applications, while section 16 allows the Treasurer to impose, revoke, or vary conditions on the approval. Additionally, section 17 permits the person holding the approval to apply for a variation of the percentage specified in the approval, and section 18 outlines the circumstances under which the Treasurer may revoke an approval. The Act also includes provisions for offences and penalties under section 11, and injunctive relief under section 32. The obligations imposed by the Act on Quaker and its associates include the requirement to apply for approval before holding a stake of more than 15% in a financial sector company, as stipulated in section 13. Upon approval, they must comply with any conditions imposed by the Treasurer under section 16. Furthermore, they must adhere to the provisions concerning unacceptable shareholding situations under section 11 and ensure that their conduct does not contravene any conditions of the approval under section 32. The Act also mandates that the Treasurer must provide written notice of the approval to the applicant and the financial sector company, and publish a copy of this notice in the Gazette, as outlined in section 14. In terms of consequences for breach, the Act outlines several offences and penalties. Section 11 imposes a criminal offence on any person or group of persons who, through the acquisition of shares, knowingly or recklessly causes an unacceptable shareholding situation to come into existence or increases their stake in a financial sector company, where an unacceptable shareholding situation already exists. The maximum penalty for this offence is 400 penalty units, or 2,000 penalty units for a body corporate, as stated in subsection 4B(3) of the Crimes Act 1914. Additionally, section 32(3) of the Act allows the Federal Court to grant an injunction to restrain a person from engaging in conduct in contravention of a condition to which an approval is subject, if the Treasurer applies to the court. This injunction can also require the person to do something if the court considers it desirable.

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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.