Approval to hold a stake in a financial sector company of more than 20%

Approval to hold a stake in a financial sector company of more than 20%

Financial Sector (Shareholdings) Act 1998

To: Togethr Trustees Pty Ltd ABN 64 006 964 049 ATF MyLifeMyMoney Superannuation Fund ABN 50 237 896 957 (Trustee) and Togethr Holdings Pty Ltd ABN 11 604 515 791 (Holdings)

SINCE

1. On 16 August 2019, Trustee and Holdings applied to the Treasurer under section 13 of the Financial Sector (Shareholdings) Act 1998 (the Act) for approval to each hold a stake of more than 20% in MyLifeMyFinance Limited ABN 54 087 651 750 (MLMF), a financial sector company under the Act; and

B. I am satisfied it is in the national interest to approve Trustee and Holdings each holding a stake in MLMF of more than 20%,

I, Adrian Rees, a delegate of the Treasurer, under paragraph 14(1)(a) of the Act, APPROVE Trustee and Holdings each holding a 100% stake in MLMF.

Under subsection 16(1) of the Act, this Approval is subject to the conditions set out in the attached Schedule.

This instrument comes into force on the date that Trustee and Holdings acquire a 100% stake in MLMF and remains in force indefinitely.

Dated 3 October 2019

[Signed]

……………………………

Adrian Rees

General Manager

Diversified Institutions Division

Interpretation

In this Notice:

100% subsidiary has the meaning given in section 3 of the Act.

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) 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 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 subsection 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 – the conditions imposed on this Approval

The aggregate market value of MLMF’s total assets must not at any time exceed 5% of the aggregate market value of the total assets of the MyLifeMyMoney Superannuation Fund.