Approval to hold a stake in a financial sector company of more than 15% - Sompo Japan Nipponkoa Insurance Inc. and Sompo Japan Nipponkoa Holdings, Inc.

Administered by Department of the Treasury

Legislation au C2015G00752 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. Sompo Japan Nipponkoa Insurance Inc. 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 SCOR SE  (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, Stuart Bingham, a delegate of the Treasurer, under subsection 14(1) of the Act, APPROVE the applicants holding a stake in the Company of 20 %.

 

By operation of section 19 of the Act, this instrument effects a flow-on approval in respect of the financial sector companies listed in the attached Schedule.

 

This Approval commences on the date it is signed and remains in force indefinitely. Dated: 21 May 2015

[Signed]

 

Stuart Bingham General Manager

Diversified Institutions Division

Interpretation Document ID: 217584

 

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

 

Sompo Japan Nipponkoa Holdings, Inc.

Schedule - the financial sector companies in respect of which flow-on approvals apply

 

SCOR Global P&C SE

SCOR Reinsurance Asia-Pacific Pte.Ltd. SCOR Global Life Australia Pty Limited SCOR Global Life SE

Overview

The Financial Sector (Shareholdings) Act 1998 was enacted to regulate and monitor significant shareholdings in Australian financial sector companies, ensuring that such holdings do not compromise the stability and integrity of the financial system. The Act addresses the problem of potential undue influence or control over financial institutions by individuals or entities that might jeopardise the national financial system. Enacted by the Commonwealth Parliament, the Act aims to protect the interests of consumers and the broader economy by preventing unacceptable shareholding situations in financial sector companies. This legislative instrument, which grants approval for Sompo Japan Nipponkoa Insurance Inc. and other specified entities to hold a stake exceeding 15% in SCOR SE, exemplifies the Act's role in safeguarding financial stability through careful oversight of major shareholdings. The approval, given by a delegate of the Treasurer, reflects a determination that such shareholding aligns with the national interest, thereby reinforcing the Act's objective to maintain a robust and secure financial sector.

Scope and Application

The Financial Sector (Shareholdings) Act 1998 applies to any person or entity seeking to acquire a stake of more than 15% in a financial sector company, which is defined under section 3 of the Act. This legislation is of national jurisdiction, administered by the Commonwealth of Australia, and is concerned with the oversight of shareholdings within the financial sector to ensure stability and protect the national interest. The Act specifically excludes situations where the shareholding is not deemed to create an "unacceptable shareholding situation" as outlined in section 10. However, the Act allows for the Treasurer to impose conditions or vary existing conditions on an approval granted under section 14, and also provides for the revocation of such approvals if necessary under section 18. The Act extends its application through flow-on approvals as stipulated in section 19, which means that if approval is granted for a stake in a financial sector company that is a holding company, it extends to the holding company's 100% subsidiaries. The approval granted under this Act is effective from the date it is signed and remains in force indefinitely unless varied or revoked by the Treasurer.

Key Provisions

The Financial Sector (Shareholdings) Act 1998 (the Act) establishes a framework for the regulation of significant shareholdings in financial sector companies. Section 13 of the Act allows an application to the Treasurer for approval to hold a stake in a financial sector company exceeding 15%. In this case, section 14 of the Act permits the Treasurer or a delegate to grant such approval if it is in the national interest, as demonstrated by the approval of a 20% stake in SCOR SE by Sompo Japan Nipponkoa Insurance Inc. and the individuals listed in the Schedule (section 14(1)). The Act imposes obligations on applicants and the Treasurer. Applicants must apply for approval to hold a stake exceeding 15% (section 13), and the Treasurer or delegate must evaluate whether granting such approval is in the national interest (section 14). Furthermore, the Treasurer has the authority to impose, vary, or revoke conditions on the approval (section 16), and to vary the percentage of the approved stake (section 17). The Treasurer must notify the applicant and the financial sector company of the approval and publish it in the Gazette (section 14 and 16). Failure to comply with the Act can result in significant consequences. Section 11 of the Act criminalises the acquisition of shares that result in an unacceptable shareholding situation or an increase in an existing unacceptable shareholding situation if done recklessly. The maximum penalty for an individual is 400 penalty units, and for a body corporate, up to 2,000 penalty units (subsection 4B(3) of the Crimes Act 1914). Additionally, an offence under section 11 is considered an indictable offence (section 39 of the Act). The Act also provides for flow-on approvals, which means that if an approval is granted for a holding company, it extends to all 100% subsidiaries (section 19).

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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.