Authority to be a NOHC of an authorised deposit-taking institution
Banking Act 1959
I, Keith Chapman, a delegate of APRA, under subsection 11AA(2) of the Banking Act 1959 (the Act), GRANT Club Finance Holdings Limited ACN 612 096 787 authority to be a NOHC.
Under subsection 11AA(3) of the Act, I IMPOSE upon this Authority the conditions specified in the attached Schedule.
This Authority operates as an authority in relation to Club Finance Holdings Limited and any ADIs that are its subsidiaries from time to time.
This Authority commences on 10 November 2016. Dated: 4 November 2016
[Signed]
Keith Chapman
Executive General Manager Specialised Institutions Division
Interpretation Document ID: 225182
In this Notice
APRA means the Australian Prudential Regulation Authority.
ADI is short for authorised deposit-taking institution and has the meaning given in subsection 5(1) of the Act.
NOHC is short for non-operating holding company and has the meaning given in subsection 5 (1) of the Act.
Note 1
Under subsection 11AA(5) of the Act, a NOHC is guilty of an offence if it does or fails to do an act
and doing or failing to do that act results in a contravention of a condition of the NOHC authority, and there is no order in force under section 11 of the Act determining that subsection 11AA(5) does not apply to the NOHC. The penalty is 200 penalty units or, by virtue of subsection 4B(3) of the Crimes Act 1914, in the case of a body corporate, a penalty of up to 1,000 penalty units. By virtue of subsection 11AA(5A) of the Act, an offence against subsection 11AA(5) is an indictable offence. Under subsection 11AA(5B) of the Act, if a
NOHC commits an offence against subsection 11AA(5), the NOHC is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the NOHC committing the offence continue (including the day of conviction for any such offence or any later day).
Note 2
Act.
Note 3
The circumstances in which APRA may revoke a NOHC authority are set out in section 11AB of the
Under subsection 11AA(6) of the Act, APRA must publish notice of the granting of this Authority
in the Gazette and may cause notice of the granting of this Authority to be published in any other way it considers appropriate.
Note 4
Under subsection 11AA(8) of the Act, a decision to impose conditions on this Authority is a
decision to which Part VI of the Act applies. If a person whose interests are affected is dissatisfied with that decision, the person may seek reconsideration of the decision by APRA in accordance with section 51B(1) of the Act. The request for reconsideration must be in writing, must state the reasons for the request, and must be given to APRA within 21 days after the decision first comes to the person’s notice or within such further period as APRA allows. If dissatisfied with APRA’s reconsidered decision confirming or varying the first decision, the person may, subject to the Administrative Appeals 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 9, 500 Queen Street, Brisbane, Qld. 4000.
Schedule - the conditions imposed on the Authority
This Authority is subject to approval by the court of the Scheme of Arrangement between QT Mutual Bank Limited and its members under Part 5.1 of the Corporations Act 2001.
Overview
The Authority to be a Non-Operating Holding Company (NOHC) of an Authorised Deposit-Taking Institution (ADI) under the Banking Act 1959 was enacted to address the need for a regulatory framework governing the operations of holding companies that do not engage in direct banking activities. This legislation was introduced to ensure that such companies adhere to specific conditions and standards, thereby maintaining financial stability and protecting depositors. Keith Chapman, a delegate of the Australian Prudential Regulation Authority (APRA), granted Club Finance Holdings Limited the authority to act as a NOHC, effective from 10 November 2016. The decision to impose conditions on this authority is subject to the provisions of Part VI of the Act, and any dissatisfied party has the right to seek reconsideration by APRA or apply for review by the Administrative Appeals Tribunal under the Administrative Appeals Act 1975. The enactment aims to provide a clear regulatory pathway for NOHCs, ensuring compliance with banking regulations while allowing flexibility for holding companies that do not directly engage in banking activities.
Scope and Application
The Banking Act 1959, through a delegation from the Australian Prudential Regulation Authority (APRA), grants Club Finance Holdings Limited the authority to function as a non-operating holding company (NOHC) for any authorised deposit-taking institution (ADI) that it may own as a subsidiary. This authority, commencing on 10 November 2016, is subject to specific conditions outlined in the attached Schedule and applies to Club Finance Holdings Limited and any ADIs it controls. The legislation's reach is federal, operating within the jurisdiction of the Commonwealth of Australia. There are stipulated penalties for any contravention of the conditions attached to the NOHC authority, with a maximum fine of 1,000 penalty units for corporate entities as per the Crimes Act 1914. Additionally, APRA retains the right to revoke the NOHC authority under section 11AB of the Act and is mandated to publish notice of the granting of this Authority in the Gazette, with the option to disseminate such notice through other appropriate channels. Affected parties have the right to seek reconsideration of any decision imposing conditions on this Authority and may further appeal to the Administrative Appeals Tribunal if dissatisfied with APRA's reconsidered decision.
Key Provisions
The primary operative sections of this legislation are subsections 11AA(2) and 11AA(3) of the Banking Act 1959 (the Act). Subsection 11AA(2) allows Keith Chapman, a delegate of the Australian Prudential Regulation Authority (APRA), to grant Club Finance Holdings Limited (CFHL) the authority to be a non-operating holding company (NOHC). Subsection 11AA(3) empowers Keith Chapman to impose specific conditions on this authority, as outlined in the attached Schedule. This authority applies to CFHL and any authorised deposit-taking institutions (ADI) that are its subsidiaries, and it became effective on 10 November 2016.
The Act imposes several obligations on CFHL as a NOHC. It must adhere to the conditions specified in the Schedule, which are intended to ensure the financial stability and regulatory compliance of CFHL and its subsidiary ADIs. These conditions are subject to approval by the court of the Scheme of Arrangement between QT Mutual Bank Limited and its members under Part 5.1 of the Corporations Act 2001. Furthermore, CFHL must comply with any additional requirements that APRA may impose to maintain the integrity and stability of the financial system.
Breaching the conditions of the NOHC authority can result in significant legal consequences. According to subsection 11AA(5) of the Act, a NOHC is guilty of an offence if it does or fails to do an act that results in a contravention of a condition of its authority and there is no order in force under section 11 of the Act determining that subsection 11AA(5) does not apply. The penalty for such an offence is 200 penalty units for an individual and up to 1,000 penalty units for a body corporate. Additionally, subsection 11AA(5A) states that an offence against subsection 11AA(5) is an indictable offence. If a NOHC commits an offence, it is guilty of an offence for each day the contravention continues, including the day of conviction or any subsequent day. Furthermore, APRA must publish notice of the granting of this authority in the Gazette and may choose to publish it in any other manner deemed appropriate under subsection 11AA(6) of the Act.
In the event that a person whose interests are affected by the decision to impose conditions on the NOHC authority is dissatisfied, they may seek reconsideration by APRA within 21 days of becoming aware of the decision or within any extended period allowed by APRA. If still dissatisfied with the reconsidered decision, the person may apply to the Administrative Appeals Tribunal for review of the decision, subject to the Administrative Appeals Act 1975. Written requests for reconsideration should be directed to APRA at Level 9, 500 Queen Street, Brisbane, Qld. 4000. This process ensures that affected parties have an opportunity to challenge decisions and seek remedies through appropriate legal channels.