Approval to hold a stake in a financial sector company of more than 15%
Financial Sector (Shareholdings) Act 1998
SINCE:
A. Stephen Weston, Luke Bunbury and the persons 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 an 85% stake in volt Corporation Limited ACN 622 084 959 (the company), which is 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, Mark Adams, a delegate of the Treasurer, under section 14 of the Act, APPROVE the applicants holding an 85% stake in the company.
Under subsection 16(1) of the Act, this Approval is subject to the conditions set out in the attached Schedule.
This approval has effect from the date it is signed and remains in force in accordance with the conditions imposed under subsection 16(1) of the Act.
Dated: 7 May 2018
[Signed]
Mark Adams
Executive General Manager
Specialised Institutions Division
Schedule – the person(s) who applied for approval
Individuals | Corporations |
Steve Weston | Weston Nominees Pty Ltd |
Luke Bunbury | Bunbury Two Pty Ltd |
Andrew Clouston | Notsoulc Pty Ltd |
Angus McBean | Bello Consulting Group No. 2 Pty Ltd |
Tony Fehon | TPF Investments Pty Ltd |
| TPF Administration Pty Ltd |
Paul Lewis | P.A.J. Lewis Superannuation Fund Pty Ltd |
| PAJ Lewis Pty Limited |
Richard Groves | K2 Risk Consulting Pty Ltd |
John Masters | Jillcris Pty Limited |
Matthew Fehon | Holycross 96 Pty Ltd |
Kylie Erica Vitale | |
James Drysdale McBean | |
Simon Corah | |
Anthony Thrassis | |
Schedule – the conditions
Size of volt bank limited
- The asset threshold for volt bank limited ACN 622 375 722 (volt bank) is $200 million.
Duration of Approval
2. Subject to conditions 3 and 4, this Approval remains in force until the end of 2 years after the day (the threshold day) that the value of the total resident assets of volt bank first exceeds the assets threshold.
3. If Stephen Weston and Luke Bunbury apply within 90 days of the threshold day for an approval under subsection 14(1) in relation to volt Corporation Limited ACN 622 084 959, the approval under this notice remains in force:
(a) if the application is refused—until the end of 2 years after the day the refusal was notified to Stephen Weston and Luke Bunbury; or
(b) if the application is granted—until the new approval under subsection 14(1) comes into force.
4. If Stephen Weston and Luke Bunbury apply more than 90 days after the threshold day for an approval under subsection 14(1) in relation to volt Corporation Limited ACN 622 084 959 and the application is granted within 2 years of the threshold day, the approval under this Notice remains in force until the new approval under subsection 14(1) comes into force.
Limits on individual shareholdings
5. Stephen Weston and Luke Bunbury must not individually hold a direct control interest greater than 35 per cent in volt Corporation Limited ACN 622 084 959 without prior approval from the Treasurer or a delegate of the Treasurer.
6. No associate of Stephen Weston or Luke Bunbury may hold a direct control interest greater than 20 per cent in volt Corporation Limited ACN 622 084 959 without prior approval from the Treasurer or a delegate of the Treasurer.
7. The associates of Stephen Weston and Luke Bunbury are the persons named in the Schedule of persons who applied for approval.
8. Direct control interest has the same meaning as in the Financial Sector Shareholdings Act 1998.
Overview
The Financial Sector (Shareholdings) Act 1998 was enacted to address the problem of excessive concentration of ownership and control in the financial sector, ensuring that such concentrations do not pose undue risks to the stability of the financial system. This legislation was introduced by the Australian Parliament with the policy objective of maintaining and enhancing the soundness and efficiency of the financial system. The Act empowers the Treasurer to approve or disapprove significant shareholdings in financial sector companies, ensuring that these entities do not fall into the hands of individuals or groups that could jeopardise financial stability. The Act operates through the granting of approvals for shareholdings that exceed a specified threshold, subject to certain conditions that aim to mitigate potential risks associated with such concentrations of ownership and control.
Scope and Application
The Financial Sector (Shareholdings) Act 1998 applies to any person or entity seeking to hold a stake of more than 15% in a financial sector company, with the approval of the Treasurer. This Act ensures that significant shareholdings in financial institutions are subject to scrutiny and approval to maintain financial stability and national security. The Act applies on a national level across Australia, encompassing various financial sector companies as defined under the legislation. The approval granted under the Act can be subject to conditions that further regulate the shareholding structure, including limits on individual and associate shareholdings, and may be contingent upon the company reaching a specified asset threshold. The scope of the Act can be extended or restricted through subordinate instruments, allowing for adjustments in response to changing financial landscapes or specific cases. Certain exclusions or exemptions may apply based on the unique circumstances of each application, but these are specifically outlined in the approval notice, such as in the case of the approval for the applicants to hold a stake in volt Corporation Limited.
Key Provisions
The Financial Sector (Shareholdings) Act 1998 (the Act) governs the approval process for individuals and entities seeking to hold significant stakes in financial sector companies. Under section 13 of the Act, applicants must apply to the Treasurer for approval to hold a stake exceeding 15%. Once the Treasurer is satisfied that it is in the national interest, they may approve the shareholding under section 14 of the Act, subject to any conditions deemed necessary. This approval is made by a delegate of the Treasurer, as evidenced in the case of this particular approval dated 7 May 2018. This approval is subject to specific conditions outlined in the attached Schedule, as mandated by section 16(1) of the Act.
The Act imposes several obligations on the parties governed by it. Firstly, the approval for holding a stake in a financial sector company is contingent upon the applicants demonstrating that the shareholding is in the national interest, as per section 14 of the Act. Secondly, the approval is subject to conditions outlined in the Schedule, which may include restrictions on the size of the shareholding, the duration of the approval, and limits on individual and associate shareholdings. These conditions are designed to ensure that the financial sector remains stable and that significant shareholdings do not pose a risk to the national economy.
Breaches of the conditions set out in the approval, or failure to comply with the requirements of the Act, may result in various consequences. Under section 17 of the Act, the Treasurer may revoke the approval if the conditions are not met, which could lead to the applicants losing their stake in the company. Additionally, any person who contravenes a condition of the approval may be subject to civil or criminal penalties, depending on the nature and severity of the breach. The maximum penalties for breaches of the Act are not specified in the text but may include fines and imprisonment under relevant provisions of the Act or other applicable legislation.