Overview

The Authority to be a Non-Operating Holding Company of an Authorised Deposit-taking Institution 2022 – IBOA Group Holdings Pty Ltd, gazetted on 2 November 2022, grants IBOA Group Holdings Pty Ltd, ABN 35 631 278 736, the authority to be a non-operating holding company (NOHC) of an authorised deposit-taking institution (ADI) under subsection 11AA(2) of the Banking Act 1959. The conditions imposed on this NOHC authority are specified in the attached schedule and were issued by Therese McCarthy Hockey, a delegate of the Australian Prudential Regulation Authority (APRA). This instrument addresses the need for regulatory oversight over the activities of NOHCs to ensure the stability and integrity of the banking sector. APRA is mandated to publish this instrument in the Gazette and may also disseminate it through other appropriate channels. The NOHC authority is applicable to the NOHC and any ADI subsidiaries it may have at any given time. Any decision to impose conditions on a NOHC authority is subject to Part VI of the Banking Act 1959, with avenues for reconsideration and appeal available under the Administrative Appeals Tribunal Act 1975.

Scope and Application

The Authority to be a Non-Operating Holding Company (NOHC) of an Authorised Deposit-Taking Institution (ADI) 2022 – IBOA Group Holdings Pty Ltd under the Banking Act 1959 pertains specifically to IBOA Group Holdings Pty Ltd, granting it the authority to operate as a NOHC of an ADI, in this case, International Bank of Australia Pty Limited. The authority is granted by Therese McCarthy Hockey, a delegate of the Australian Prudential Regulation Authority (APRA), and it is subject to certain conditions outlined in the accompanying schedule. These conditions necessitate that the NOHC consult with and obtain written agreement from APRA before commencing certain activities, such as initiating activities not previously approved, establishing or acquiring subsidiaries other than special purpose vehicles, committing to significant equity acquisitions, increasing exposures to related entities, or entering into arrangements that affect the disposal of shares in specified subsidiaries or the provision of services by related entities to regulated entities. The authority applies nationally as it is issued under Commonwealth legislation. The Act's jurisdictional reach is Commonwealth, ensuring that the regulations apply uniformly across Australia. The authority does not explicitly state exclusions or exemptions, but it does outline specific conditions that must be adhered to, thereby delineating the scope of permissible activities. The application and interpretation of this authority can be extended or clarified through subordinate instruments, such as Prudential Standards issued by APRA.

Key Provisions

The main operative sections of the legislation, C2022G01086, concern the granting of an authority to IBOA Group Holdings Pty Ltd, ABN 35 631 278 736 (the NOHC), to be a non-operating holding company (NOHC) of an authorised deposit-taking institution (ADI). Under subsection 11AA(2) of the Banking Act 1959 (the Act), Therese McCarthy Hockey, a delegate of the Australian Prudential Regulation Authority (APRA), grants this authority. The authority is subject to conditions specified in the attached schedule, as stipulated in subsection 11AAA(1) of the Act. This authority is effective from the date of issuance, 2 November 2022. The obligations and requirements imposed by the Act on IBOA Group Holdings Pty Ltd include consulting with and obtaining written agreement from APRA before commencing any new activities, establishing or acquiring a subsidiary, committing to an equity interest of 20% or more in another entity, committing to a related body corporate exposure of 10% or more of the NOHC’s Tier 1 Capital, or entering into any arrangement that could lead to the disposal of shares in a specified subsidiary or result in a related body corporate ceasing to provide necessary services to a related regulated entity. Additionally, if a related body corporate provides services necessary or significant to maintaining the operations of a related regulated entity, that related body corporate must be a subsidiary of the NOHC. The legislation also outlines the consequences for breaches of its provisions. While specific offences and penalties are not detailed in the extract, the Act allows for reconsideration of decisions by APRA and review by the Administrative Appeals Tribunal if the NOHC is dissatisfied with the outcome. The NOHC must request reconsideration in writing within 21 days of receiving notice of the decision, or within any extended period allowed by APRA. The address for such communications is Level 12, 1 Martin Place, Sydney NSW 2000. The conditions set forth are crucial for ensuring the stability and compliance of the NOHC and its subsidiaries with regulatory standards.