Consent to sale or disposal of business of an ADI 2024 – Macquarie Credit Union Limited
Banking Act 1959
To: Macquarie Credit Union Limited ABN 85 087 650 253 (the ADI) SINCE:
- the ADI is an ADI that is not a foreign ADI;
B. the ADI proposes to enter into an arrangement or agreement for the sale or disposal of its business (by amalgamation or otherwise) to another ADI, Regional Australia Bank Ltd ABN 21 087 650 360, as described in the schedule (the arrangement or agreement); and
C. I have taken the national interest into account,
I, Stephanie Hewitt, a delegate of the Treasurer, under subsection 63(1) of the Banking Act 1959 (the Act), CONSENT to the arrangement or agreement.
Dated: 18 January 2024
Stephanie Hewitt General Manager Banking Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority. ADI has the meaning given in subsection 5(1) of the Act. foreign ADI has the meaning given in subsection 5(1) of the Act.
Notes
The Treasurer, or the Treasurer’s delegate, is required to publish this instrument in the Gazette.
Schedule – arrangement or agreement
An arrangement for a voluntary total transfer of business under the Financial Sector (Transfer and Restructure) Act 1999.
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Overview
The Consent to sale or disposal of business of an ADI 2024 – Macquarie Credit Union Limited, gazetted under the Banking Act 1959, was introduced to facilitate the transfer of business operations of Macquarie Credit Union Limited, an Australian Deposit-taking Institution (ADI) and not a foreign ADI, to another ADI, Regional Australia Bank Ltd. The enactment of this legislation aims to ensure the orderly sale or disposal of business operations, maintaining the stability and integrity of the financial sector in line with national interests. This instrument, issued by Stephanie Hewitt, a delegate of the Treasurer, signifies the government's consent to the proposed arrangement, which includes a voluntary total transfer of business as per the Financial Sector (Transfer and Restructure) Act 1999. The publication of this consent in the Gazette aligns with the requirements under subsection 63(1) of the Banking Act 1959, ensuring transparency and adherence to regulatory standards.
Scope and Application
The Consent to sale or disposal of business of an ADI 2024 – Macquarie Credit Union Limited, issued under the Banking Act 1959, applies specifically to Macquarie Credit Union Limited, an authorised deposit-taking institution (ADI) that is not classified as a foreign ADI. This legislative instrument pertains to the consent granted by Stephanie Hewitt, a delegate of the Treasurer, for Macquarie Credit Union Limited to enter into a proposed arrangement or agreement for the sale or disposal of its business to another ADI, Regional Australia Bank Ltd. The consent is contingent upon the consideration of the national interest by the delegate, as mandated by the Act. This consent is geographically and jurisdictionally relevant to the Commonwealth of Australia, as it falls under the purview of the federal banking regulations outlined in the Banking Act 1959. The Act does not specify any exclusions, exemptions, or thresholds within this particular instrument, though it may be subject to further conditions or regulations through subordinate instruments issued under the authority of the Act. The Act's scope and application are thus narrowly focused on the specified entities and the particular transaction described in the accompanying schedule.
Key Provisions
The Consent to Sale or Disposal of Business of an ADI 2024 – Macquarie Credit Union Limited, issued under the Banking Act 1959, provides consent for Macquarie Credit Union Limited (the ADI) to enter into an arrangement for the sale or disposal of its business to Regional Australia Bank Ltd. This consent is given by Stephanie Hewitt, a delegate of the Treasurer, and is contingent on certain conditions (sections B and C). Specifically, the ADI must not be a foreign ADI and must propose to transfer its business to another ADI through amalgamation or another method as outlined in the schedule. The delegate of the Treasurer must also consider the national interest when granting this consent.
The Act imposes several obligations on Macquarie Credit Union Limited, including the necessity to ensure that the proposed arrangement adheres to the stipulations laid out in the Banking Act 1959. The ADI must also ensure that the transfer of its business is conducted in a manner that complies with relevant laws and regulations. Additionally, Regional Australia Bank Ltd, the entity to which the business is being transferred, must meet certain criteria set forth by the Act to be eligible for such a transaction. The Australian Prudential Regulation Authority (APRA) will also need to be kept informed of any significant developments in this arrangement.
Any breach of the conditions or obligations stipulated under this legislation can lead to serious consequences. The Act does not explicitly list specific offences or penalties within the text provided, but violations of banking laws can generally result in civil or criminal penalties. In cases of civil penalties, the ADI or Regional Australia Bank Ltd may face fines, compensatory payments, or other corrective actions. Criminal penalties could include imprisonment, substantial fines, or both, depending on the severity and nature of the breach. The exact penalties would be determined based on the specific provisions of the Banking Act 1959 and any applicable regulations.