Authority to be a NOHC of an ADI 2021 – Alex Corporation Limited
Banking Act 1959
To: Alex Corporation Limited ABN 89 634 554 608 (the NOHC)
I, Therese McCarthy Hockey, a delegate of APRA, under subsection 11AA(2) of the Banking Act 1959 (the Act), GRANT the NOHC an authority to be a NOHC of an ADI.
Under subsection 11AAA(1) of the Act, I IMPOSE on this NOHC authority the conditions specified in the schedule.
This instrument commences on the day it is made. Dated: 7 July 2021
Therese McCarthy Hockey Executive Director Banking Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority.
ADI has the meaning given in subsection 5(1) of the Act.
NOHC has the meaning given in subsection 5(1) of the Act.
NOHC authority has the meaning given in subsection 5(1) of the Act.
Notes
APRA is required to publish this instrument in the Gazette, and may also publish this instrument in any other way that APRA considers appropriate.
This NOHC authority operates as an authority in relation to the body corporate and any ADIs that are subsidiaries of the body corporate from time to time.
A decision to impose conditions on a NOHC authority is a decision to which Part VI of the Act applies. You may request APRA reconsider the decision in accordance with subsection 51B(1) of the Act. The request for reconsideration must be made in writing, must state the reasons for the request, and must be given to APRA within 21 days after the day on which you first received notice of this decision, or within such further period as APRA allows. If you are dissatisfied with the outcome of APRA’s reconsideration of the decision, you may, subject to the Administrative Appeals Tribunal Act 1975, apply to the Administrative Appeals Tribunal for review of the
reconsidered decision. The address where written notice may be given to APRA is Level 12, 1 Martin Place, Sydney NSW 2000.
Schedule – conditions
Where a related body corporate of the NOHC provides services that are, or conducts business that is, essential to the capacity of an ADI subsidiary of the NOHC to maintain the ADI’s operations, the related body corporate must be a subsidiary of the NOHC.
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Overview
The Authority to be a Non-Operating Holding Company (NOHC) of an Authorised Deposit-taking Institution (ADI) 2021, enacted under the Banking Act 1959, addresses the need for clear regulatory frameworks governing the relationship between NOHCs and their ADI subsidiaries. This legislative instrument was issued by Therese McCarthy Hockey, acting as a delegate of the Australian Prudential Regulation Authority (APRA). The primary objective of this legislation is to ensure that the financial stability of ADIs is maintained by imposing specific conditions on NOHCs. The policy intent is to protect the interests of depositors and to maintain confidence in the financial system by ensuring that NOHCs are appropriately structured and managed to support their ADI subsidiaries effectively. This legislative measure underscores APRA's commitment to prudent oversight and regulation of financial institutions within Australia.
Scope and Application
The Authority to be a Non-Operating Holding Company (NOHC) of an Authorised Deposit-Taking Institution (ADI) 2021 pertains specifically to Alex Corporation Limited, with the Australian Business Number (ABN) 89 634 554 608, which is granted the authority to act as a NOHC of an ADI. This legislative instrument, issued under the Banking Act 1959, is a directive from Therese McCarthy Hockey, acting as a delegate of the Australian Prudential Regulation Authority (APRA). The NOHC authority granted to Alex Corporation Limited comes with specific conditions as outlined in the attached schedule, which stipulate that any related body corporate providing essential services or conducting essential business for an ADI subsidiary must be a subsidiary of the NOHC. The authority extends to the body corporate and any ADIs that are subsidiaries of Alex Corporation Limited at any given time. This authority operates under the Commonwealth jurisdiction and can be subject to reconsideration or appeal as per the provisions of the Banking Act 1959 and the Administrative Appeals Tribunal Act 1975. APRA retains the discretion to publish this authority in the Gazette or through any other means it deems appropriate.
Key Provisions
The main operative sections of this piece of legislation are subsection 11AA(2) and subsection 11AAA(1) of the Banking Act 1959. Subsection 11AA(2) allows Therese McCarthy Hockey, a delegate of APRA, to grant Alex Corporation Limited, a non-operating holding company (NOHC) of an authorised deposit-taking institution (ADI), the authority to be a NOHC of an ADI. Subsection 11AAA(1) imposes specific conditions on this authority, as detailed in the attached schedule.
The obligations and requirements imposed by this Act on Alex Corporation Limited primarily revolve around the relationship between the NOHC and its ADI subsidiaries. As per the schedule, any related body corporate that provides services or conducts business essential to the operations of an ADI subsidiary must itself be a subsidiary of the NOHC. This ensures a structured and controlled relationship between the NOHC and its ADIs, enhancing oversight and stability within the financial institution's corporate structure.
In terms of potential consequences for breach, the Act does not explicitly outline specific offences or penalties in this particular document. However, breaches of conditions imposed under the Banking Act 1959 generally could lead to a range of civil or criminal penalties, depending on the nature and severity of the breach. The Banking Act provides for various enforcement mechanisms, including the possibility of fines, disqualification of directors, or even criminal charges in cases of serious misconduct. The maximum penalties would be determined by the specific provisions of the Act that are breached, and by the discretion of the courts or relevant regulatory authorities.