Approval to hold the transferring business of a financial sector company No. 10 of 2025
Financial Sector (Shareholdings) Act 1998
To: Regional Australia Bank Ltd ABN 21 087 650 360 (the applicant) SINCE:
- the applicant and Summerland Financial Services Limited ABN 23 087 650 806 (the company) are financial sector companies;
- more than 20% of the gross assets and liabilities of the company (the transferring business) are to be transferred to the applicant under the Financial Sector (Transfer and Restructure) Act 1999;
- the applicant has applied to the Treasurer under subsection 13A(2) of the Financial Sector (Shareholdings) Act 1998 (the Act) for approval to hold the transferring business; and
- I am satisfied that it is in the national interest to approve the applicant holding the transferring business,
I, Declan Latimer, a delegate of the Treasurer, under paragraph 14(1)(a) of the Act, APPROVE the applicant holding a 100% stake in the transferring business.
This approval commences on the day it is made and remains in force indefinitely. Date: 28 August 2025
Declan Latimer General Manager
General Insurance and Banking Division
Interpretation
APRA means the Australian Prudential Regulation Authority.
financial sector company has the meaning given in section 3 of the Act.
transferring business has the meaning given in subsection 13A of the Act.
stake in relation to a company, has the meaning given in clause 10 of Schedule 1 to the Act.
Notes
This instrument will be registered on the Federal Register of Legislation as a notifiable instrument.
The Treasurer or the Treasurer’s delegate is required to give a copy of this instrument to the financial sector company and, where applicable, the relevant licensed company.
By operation of regulation 8 of the Financial Sector (Transfer and Restructure) Regulations 2018, the Act applies in relation to a transfer of business under the Financial Sector (Transfer and Restructure) Act 1999 as if section 13A was inserted into the Act.
Overview
The Financial Sector (Shareholdings) Act 1998 was enacted to address the need for oversight and regulation of shareholdings in financial sector companies to ensure stability and integrity within the financial system. This Act was introduced by the Parliament of Australia, with the policy objective of safeguarding the interests of consumers, investors, and the broader economy by preventing excessive concentration of ownership in the financial sector. The notifiable instrument, Approval to hold the transferring business of a financial sector company No. 10 of 2025, grants Regional Australia Bank Ltd approval to hold a 100% stake in the transferring business of Summerland Financial Services Limited, under the conditions set by the Financial Sector (Shareholdings) Act 1998. This approval, issued by a delegate of the Treasurer, is in the national interest and comes into effect immediately, remaining in force indefinitely. The instrument requires notification and distribution to the relevant parties as per the Financial Sector (Transfer and Restructure) Regulations 2018.
Scope and Application
The Financial Sector (Shareholdings) Act 1998 applies to entities within the financial sector, specifically targeting financial sector companies as defined under the Act. The Act regulates the shareholdings of such companies, particularly when a transfer of business is involved, as per the Financial Sector (Transfer and Restructure) Act 1999. In the given notifiable instrument, the Act applies to Regional Australia Bank Ltd and Summerland Financial Services Limited, both identified as financial sector companies. The approval pertains to the transfer of more than 20% of the gross assets and liabilities of Summerland Financial Services Limited to Regional Australia Bank Ltd. This approval is granted under the authority of the Treasurer or a delegate, in this case, Declan Latimer, and is based on the national interest. The approval is for an indefinite period, commencing on the date of issuance. The geographic and jurisdictional reach of the Act is nationwide, applying across the Commonwealth of Australia. It extends its application through subordinate instruments, such as regulations, which may provide further detail or exceptions. The Financial Sector (Transfer and Restructure) Regulations 2018, for instance, incorporate specific provisions of the Act in relation to business transfers.
Key Provisions
The key operative sections of this notifiable instrument (F2025N00824) involve the approval for Regional Australia Bank Ltd to hold a 100% stake in the transferring business of Summerland Financial Services Limited under the Financial Sector (Shareholdings) Act 1998 (section 13A). This approval is given by Declan Latimer, a delegate of the Treasurer, on the condition that it is deemed to be in the national interest (subsection 13A(2)). The approval is effective from the date it is made and will remain in force indefinitely (subsection 13A(4)).
Under this legislation, Regional Australia Bank Ltd is authorised to hold a 100% stake in the transferring business of Summerland Financial Services Limited. This authorisation is contingent upon the condition that more than 20% of the gross assets and liabilities of Summerland Financial Services Limited are transferred to Regional Australia Bank Ltd, as per the Financial Sector (Transfer and Restructure) Act 1999. The applicant must have applied for this approval to the Treasurer, and the Treasurer or their delegate must be satisfied that the approval is in the national interest.
The obligations imposed on the parties governed by this Act include the requirement for Regional Australia Bank Ltd to comply with the terms and conditions of the approval. This includes ensuring that the transfer of more than 20% of Summerland Financial Services Limited’s gross assets and liabilities is carried out in accordance with the Financial Sector (Transfer and Restructure) Act 1999. Additionally, the Treasurer or their delegate must provide a copy of this instrument to both Regional Australia Bank Ltd and Summerland Financial Services Limited, where applicable.
The Financial Sector (Shareholdings) Act 1998 outlines the potential consequences for breaches of its provisions. While specific offences and penalties are not detailed in this particular notifiable instrument, general provisions in the Act could include civil or criminal penalties for non-compliance. These could range from fines to more severe penalties depending on the nature and extent of the breach. The exact penalties would be determined by the courts in the event of a breach, reflecting the seriousness of the contravention.