Banking exemption No. 1 of 2006

This compilation was prepared by the Australian Prudential Regulation Authority on 5 July 2007 taking into account amendments made by the Banking exemption No. 2 of 2006, Banking exemption No. 3 of 2006 and Banking exemption No.1 of 2007.

Banking exemption No. 1 of 2006

as amended

Banking Act 1959

I, Charles Watts Littrell, a delegate of APRA, under subsections 11(1) and 11(4) of the Banking Act 1959 (the Act):

• REVOKE the Banking exemptions listed in the attached Schedule 1; and

• DETERMINE that in relation to the business, operations or activities of a Religious Charitable Development Fund (Fund) listed in the attached Schedule 2:

1. section 7 of the Act does not apply to a person who is a controlling entity of a Fund; and

2.             section 8 of the Act does not apply to

(a)          a Fund that is a body corporate; or

(b)          a body corporate that is a controlling entity of a Fund.

This Determination is subject to the conditions specified in the attached Schedule 3.

This Determination expires at the end of 5 years from the date of this Determination.

Under paragraph 12(1)(d) of the Legislative Instruments Act 2003 (the LIA), this Determination comes into effect the first moment of the day following the day when it is registered under the LIA.

Dated 26 June 2006

[signed]

Charles Littrell

Executive General Manager

Policy, Research and Statistics

APRA

Interpretation

In this Notice

APRA means the Australian Prudential Regulation Authority.

controlling entity means a person or body corporate who or which is a trustee of, or otherwise concerned in the management of, a Fund.

Note 1       Under subsection 11(1) of the Act, APRA may, by order published in the Gazette, determine that all provisions (other than section 63) or specified provisions (other than section 63) of the Act do not apply to a person while the order continues in force.

Note 2 Under subsection 11(2) of the Act, an order under subsection 11(2) may be expressed to apply to a particular person or to a class of persons, may specify the period during which the order remains in force and may be made subject to conditions.

Note 3 Under subsection 11(3) of the Act, a person is guilty of an offence if the person does or fails to do an act and doing or failing to do that act results in a contravention of a condition of a condition to which an order under section 11 is subject (being an order that is in force and that applies to the person). The maximum 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 not exceeding 1,000 penalty units. By virtue of subsection 11(3A) of the Act, an offence against subsection 11(3) is an indictable offence. Under subsection 11(3B) of the Act, if a person commits an offence against subsection 11(3), the person 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 person committing the offence continue (including the day of conviction for any such offence or any later day).

Note 4 Under subsection 11(4) of the Act, APRA may, by order published in the gazette, vary or revoke an order under section 11.

Schedule 1 – Existing Banking exemptions to be revoked

• Banking exemption order No. 60
• Banking exemption order No. 72
• Banking exemption order No. 73
• Banking exemption order No. 76
• Banking exemption order No. 83
• Banking exemption order No. 84
• Banking exemption order No. 88
• Banking exemption order No. 94
• Banking exemption order No. 95
• Banking exemption order No. 100

Schedule 2 - Religious Charitable Development Funds

• Adelaide Synod Trust Fund
• Anglican Community Fund (Inc) (previously known as Anglican Deposit Fund Perth (Inc))
• Anglican Development Fund Diocese of Bathurst
• Anglican Development Fund Diocese of Canberra & Goulburn
• Anglican Development Fund (Diocese of Melbourne)
• Anglican Development Fund (Diocese of Tasmania)
• Anglican Development Fund – Gippsland
• Anglican Financial Services (ANFIN) (Diocese of Brisbane)
• Anglican Managed Investments Fund Diocese of Bathurst
• Anglican Savings and Development Fund Diocese of Newcastle
• Glebe Income Accounts (Anglican Church Diocese of Sydney)
• The Corporate Trustees of the Diocese of Grafton – Grafton Diocese Investment Fund
• Diocesan Development Fund – Anglican Diocese of Bendigo
• Murray Anglican Development Fund
• Riverina Anglican Development Fund
• Wangaratta Anglican Development Fund
• Diocesan Development Fund (Diocese of Armidale)

• Archdiocese of Adelaide – Catholic Development Fund
• Diocese of Armidale – Armidale Archdiocesan Investment Group (or The Trustees of the Roman Catholic Church for the Diocese of Armidale – Armidale Diocesan and Investment Group)
• Diocese of Ballarat – Catholic Development Fund
• Diocese of Bathurst – Catholic Development Fund
• Archdiocese of Brisbane – Archdiocesan Development Fund (or The Corporation of the Trustees of the Roman Catholic Archdiocese of Brisbane)
• Diocese of Broken Bay – Catholic Development Fund (or Trustees of the Roman Catholic Church for the Diocese of Broken Bay)
• Diocese of Bunbury – Catholic Development Fund
• Diocese of Cairns – Catholic Development Fund (or The Roman Catholic Trust Corporation for the Diocese of Cairns
• Archdiocese of Canberra and Goulburn – Catholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Canberra and Goulburn (ACT) & (NSW)
• Diocese of Darwin – Diocesan Development Fund (or Catholic Church of the Diocese of Darwin Property Trust – Darwin Diocesan Development Fund)
• Archdiocese of Hobart - Catholic Development Fund
• Diocese of Lismore – Diocesan Investment Fund (or The Trustees of the Roman Catholic Church for the Diocese of Lismore)
• Diocese of Maitland–Newcastle - Catholic Development Fund (or The Trustees of Church Property for the Diocese of Newcastle)
• Archdiocese of Melbourne - Catholic Development Fund
• Diocese of Parramatta - Diocesan Development Fund
• Archdiocese of Perth - Catholic Development Fund
• Catholic Development Fund Diocese of Port Pirie
• Diocese of Rockhampton - Diocesan Development Fund
• Diocese of Sale - Catholic Development Fund
• Diocese of Sandhurst – Diocesan Development Fund
• Archdiocese of Sydney - Catholic Development Fund (or The Trustees of the Roman Catholic Church for the Archdiocese of Sydney)
• Diocese of Toowoomba - Diocesan Development Fund
• Diocese of Townsville - Diocesan Development Fund
• Diocese of Wagga Wagga - Diocesan Provident Fund (or The Trustees of the Roman Catholic Church for the Diocese of Wagga Wagga)
• Diocese of Wollongong – Catholic Development Fund

• Assemblies of God in Australia Ltd
• Baptist Investments & Finance Limited
• Centenary Development Foundation
• Christian Outreach Centre
• Churches of Christ Building Extension Mutual Fund Incorporated
• Lutheran Lay People's League of Australia Incorporated
• The Baptist Union of Queensland
• The Uniting Church in Australia Property Trust (SA)
• The Uniting Church Investment Service
• UCA Funds (incorporating UCA Cash Management Fund Limited, UCA Growth Fund Limited, Uniting Growth Fund Limited, the Development Fund, The Uniting Church in Australia Property Trust (Victoria) and the Funeral Fund)
• Uniting Financial Services (incorporating The Uniting Church (NSW) Trust Association Limited, The Uniting Church in Australia Property Trust (NSW), the Funeral Fund and the Self-Help Fund)
• UCA – Investment Fund (Presbytery of Canberra Region)
• Uniting Church in Australia Synod of Western Australia Uniting Church Investment Fund
  Schedule 3 - Conditions

1. The Fund must be and continue to be:

(a)          recognised at law as being formed for religious and charitable purposes stated in a trust deed, ordinance or other foundation document governing the Fund (Fund constitution); and

(b)          limited to the purposes stated in the Fund constitution; and

(c)          operated not-for-profit.

2.             The Fund’s financial products must have the sole or dominant intention of furthering the religious and charitable purposes of the Fund.

3.             A copy of the Fund constitution setting out the Fund’s religious and/or charitable purpose/s must be available for inspection on request by APRA. 

4.             The Fund or its controlling entity must not offer via the Fund:

(a)          cheque account facilities unless the account holder is:

(i)            a body constituted by or under the authority of a decision of the central governing body of a related religious organisation; or

(ii)         a body in relation to which the central governing body of a related religious organisation is empowered to make ordinances or other binding rules; or

(iii)       a person acting as a trustee of a trust for or for the use, benefit or purposes of a related religious organisation; or

(iv)        an employee of a body mentioned in subparagraphs (i) to (iii) above who receives their stipend or remuneration via an account of the Fund; or

(b)          Electronic Funds Transfer at Point Of Sale (EFTPOS) facilities; or

(c)          Automatic Teller Machine (ATM) facilities.

5.             The Fund or its controlling entity must in all cases ensure that advertising and marketing material of the Fund contains clear and prominent disclosures (the required disclosures) to the effect that:

(a)          neither the controlling entity nor the Fund is prudentially supervised by APRA;

(b)          contributions to the Fund do not obtain the benefit of the depositor protection provisions of the Banking Act 1959; and

(c)          the Fund is designed for investors who wish to promote the charitable purposes of the Fund.

6.             The Fund or its controlling entity may advertise and market the Fund on-line or in print produced by or under the auspices of the controlling entity (or the religious institution that established the Fund).  All advertising and marketing material of the Fund must contain the required disclosures outlined in condition 5.

7.             Unless the Fund representative has already provided APRA with a letter certifying that the Fund complies with conditions 1 to 6 of this order (or a subsequent exemption order), the Fund representative must within one month of the date of this determination provide APRA with a letter that either:

(a)          certifies that the Fund complies with conditions 1 to 6; or

(b)          gives details of the extent to which the Fund does not comply with conditions 1 to 6.

8.             If condition 7(b) applies, the Fund representative must within twelve months of the date of this determination provide APRA with a letter certifying that the Fund complies with conditions 1 to 6. 

9.             In conditions 7 and 8, "Fund representative" means the Chief Executive Officer of the Fund or its controlling entity (or another senior manager of the Fund or its controlling entity delegated for this purpose).

Notes to Banking exemption No. 1 of 2006

Note 1

Banking exemption No. 1 of 2006 (in force under subsection 11(1) of the Banking Act 1959) as shown in this compilation comprises the principal Banking exemption No. 1 of 2006 (made on 26 June 2006) amended as indicated in the Tables below.

Table of Legislative Instruments

Table of Amendments