Overview

The Banking (Sale or Disposal of Business of an ADI) Consent (No. 1) 2022 was enacted by Therese McCarthy Hockey, a delegate of the Treasurer, under the authority granted by subsection 63(1) of the Banking Act 1959. This instrument provides consent for Volt Bank Limited, a domestic authorised deposit-taking institution (ADI), to enter into an arrangement for the sale or disposal of its business to another ADI, National Australia Bank Limited. The primary purpose of this consent is to address the regulatory requirements for the transfer of business between ADIs, ensuring that the national interest is considered in such transactions. The consent signifies that the Treasurer, or their delegate, has assessed the arrangement against relevant criteria and determined that it is in the national interest, thereby facilitating the proposed transaction under the oversight of the Australian Prudential Regulation Authority (APRA).

Scope and Application

The Banking (Sale or Disposal of Business of an ADI) Consent (No. 1) 2022 applies specifically to Volt Bank Limited, an authorised deposit-taking institution (ADI) that is not a foreign ADI, and its proposed arrangement or agreement for the sale or disposal of its business to another ADI, National Australia Bank Limited. This consent, granted under subsection 63(1) of the Banking Act 1959, is issued by Therese McCarthy Hockey, an Executive Director of the Banking Division and a delegate of the Treasurer, after considering the national interest. This instrument signifies the consent to the specific arrangement or agreement for a voluntary partial transfer of business as described in the schedule and under the Financial Sector (Transfer and Restructure) Act 1999. The consent is limited to the particular ADIs involved and the specified arrangement, and does not extend to other entities, industries, or types of transactions outside the scope of this document. This consent may be extended or restricted through subordinate instruments, which would further define the application of the Banking Act 1959 in this context.

Key Provisions

The key operative sections of the "Banking (Sale or Disposal of Business of an ADI) Consent (No. 1) 2022" require the consent of the Treasurer or their delegate for Volt Bank Limited to proceed with the sale or disposal of its business to another authorised deposit-taking institution (ADI), National Australia Bank Limited. This consent is specifically granted under subsection 63(1) of the Banking Act 1959 (section 63(1)) and is based on the national interest consideration by the delegate, Therese McCarthy Hockey, who is the Executive Director of the Banking Division. The consent applies to the arrangement or agreement detailed in the schedule, which outlines a voluntary partial transfer of business under the Financial Sector (Transfer and Restructure) Act 1999. The Act imposes several obligations and requirements on the parties involved. Volt Bank Limited, as the ADI seeking to sell or dispose of its business, must ensure that it complies with the conditions set out in the Banking Act 1959 and the Financial Sector (Transfer and Restructure) Act 1999. National Australia Bank Limited, as the acquiring ADI, must also adhere to these legislative frameworks. Both entities must provide all necessary information and documentation to the delegate for review and must not proceed with the sale or disposal without obtaining the required consent. The Treasurer or their delegate must consider the national interest when granting this consent, ensuring that the transaction is in the public good. The legislation does not explicitly state offences or penalties for breach within the text provided, but breaches of the Banking Act 1959 or the Financial Sector (Transfer and Restructure) Act 1999 can lead to significant civil and criminal consequences. Under the Banking Act, breaches can result in fines, imprisonment, or both, depending on the severity of the offence. For instance, unauthorised financial transactions or misleading conduct can attract substantial penalties. Similarly, the Financial Sector (Transfer and Restructure) Act may impose penalties for non-compliance, including fines up to the statutory maximum amounts as stipulated in the respective sections of the Act. These penalties underscore the importance of adhering to the legislative requirements to avoid legal repercussions.