Authority to carry on banking business
Banking Act 1959
I, Mark Adams, a delegate of APRA, under subsection 9(3) of the Banking Act 1959 (the Act), GRANT Societe Generale ABN 71 092 516 286 (the ADI) authority to carry on banking business in Australia.
Under paragraph 9AA(1)(a) of the Act, I IMPOSE on this Authority the conditions specified in the Schedule.
This Authority commences on 16 May 2019.
Dated: 4 May 2019 [Signed]
Mark Adams
Executive General Manager Specialised Institutions Division
Interpretation
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.
banking business has the meaning given in subsection 5(1) of the Act.
Note 1 Under subsection 9AA(1) of the Act, APRA may at any time, by notice in writing given to an ADI, impose conditions or additional conditions or vary or revoke conditions imposed on its Authority to carry on banking business. The conditions must relate to prudential matters.
Note 2 Under subsection 9AB(1) of the Act, an ADI 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 ADI’s Authority, and there is no determination in force under section 11 of the Act that subsection 9AB(1) does not apply to the ADI. The maximum penalty is 300 penalty units. Under subsection 9AB(2) of the Act, where an individual commits an offence against subsection 9AB(1) of the Act because of Part 2.4 of the Criminal Code, or commits an offence under Part 2.4 of the Criminal Code in relation to an offence against subsection 9AB(1) of the Act, the individual is punishable on conviction by a fine not exceeding 60 penalty units. By virtue of subsection 9AB(3) of the Act, an offence against subsection 9AB(1) is an offence of strict liability.
Note 3 The circumstances in which APRA may revoke an ADI’s Authority are set out in section 9A of the Act.
Note 4 Under subsection 9(3) of the Act, notice of this Authority must be provided to the ADI. Under subsection 9(4) of the Act, APRA must publish notice of this Authority in the Gazette and may cause notice of the Authority to be published in any other way it considers appropriate.
Note 5 Under subsection 9AA(6) 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 subsection 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 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 – the conditions imposed on the Authority
1. The ADI, as a foreign ADI carrying on banking business in Australia, shall not accept deposits or other funds for amounts which are less than $250,000 from any source other than from:
(a) incorporated entities;
(b) persons or unincorporated entities that are not residents of Australia;
(c) its own employees; or
(d) persons or unincorporated entities with an initial balance with the foreign ADI of at least $250,000.
In this Schedule, foreign ADI has the meaning given in subsection 5(1) of the Act.
Overview
The Banking Act 1959 was enacted to regulate the banking industry in Australia, ensuring financial stability and protecting consumers. The Act provides a framework for the operation of authorised deposit-taking institutions (ADIs), including foreign ADIs, and sets out the powers and functions of the Australian Prudential Regulation Authority (APRA). This legislation addresses the need for a comprehensive regulatory regime that maintains the integrity and reliability of the banking sector. The policy objective of the Act is to promote the safety and soundness of the Australian financial system, which is achieved through prudential supervision and oversight of ADIs. The Act empowers APRA to grant, impose conditions on, or revoke an ADI's authority to carry on banking business in Australia. This specific legislative instrument, issued under subsection 9(3) of the Banking Act 1959, grants Societe Generale the authority to carry on banking business in Australia, subject to the conditions specified in the attached Schedule.
Scope and Application
The Banking Act 1959 applies to authorised deposit-taking institutions (ADIs) such as Societe Generale, which has been granted authority by APRA to carry on banking business in Australia. This legislation pertains to the regulation of ADIs, ensuring they adhere to certain conditions relating to prudential matters. Specifically, the Act imposes conditions on the authority granted to foreign ADIs, such as Societe Generale, to operate within Australia, as outlined in the Schedule. The authority granted is effective from 16 May 2019, and the conditions imposed relate to the minimum deposit amounts accepted by the ADI. These conditions aim to regulate the nature of deposits and other funds accepted by foreign ADIs, with specific exclusions for certain sources of funds. The Act extends its reach to both Commonwealth and state jurisdictions, ensuring that ADIs comply with the stipulated conditions across Australia. The Act also provides mechanisms for APRA to impose, vary, or revoke conditions through subordinate instruments, ensuring flexibility in the regulatory framework.
Key Provisions
Under the Banking Act 1959, section 9(3) provides the authority for Societe Generale to conduct banking business in Australia. This authority is granted by Mark Adams, a delegate of APRA, and it is subject to the conditions outlined in the accompanying schedule, as stipulated under section 9AA(1)(a). The authority officially commences on 16 May 2019. The conditions imposed on Societe Generale, which are detailed in the schedule, relate specifically to the types of deposits it can accept. For instance, under the first condition, Societe Generale is prohibited from accepting deposits or other funds for amounts less than $250,000 from sources other than incorporated entities, non-resident persons or unincorporated entities, its own employees, or entities with an initial balance of at least $250,000. These conditions are intended to manage the prudential risks associated with Societe Generale’s operations in Australia.
The Banking Act 1959 imposes several obligations and requirements on Societe Generale as a foreign authorised deposit-taking institution (ADI). Primarily, it must adhere to the conditions specified in the schedule attached to the authority notice, which are designed to ensure prudent and safe banking practices. APRA retains the authority to impose, vary, or revoke these conditions at any time, ensuring ongoing compliance with prudential standards. Furthermore, Societe Generale must ensure that any breach of the conditions does not result in a contravention of its authority, as such breaches could lead to serious legal consequences. Additionally, Societe Generale must comply with the notification requirements stipulated in sections 9(3) and 9(4) of the Act, ensuring that both itself and the public are adequately informed of the authority and any changes thereto.
Breaches of the conditions imposed on Societe Generale's authority to conduct banking business in Australia can result in significant legal consequences. Under section 9AB(1) of the Act, Societe Generale is liable for an offence if it fails to comply with any condition of its authority, with a maximum penalty of 300 penalty units. If an individual within the institution commits an offence under this subsection, they can also be personally liable, with a maximum penalty of 60 penalty units. These offences are of strict liability, meaning intent does not need to be proven for conviction. Additionally, APRA has the power to revoke Societe Generale’s authority under section 9A of the Act if it determines that the ADI is not complying with prudential standards or if it is in the public interest to do so. This revocation could have severe implications for the institution's ability to operate in Australia.