Overview

The Consent to Sale or Disposal of Business of an ADI 2025, issued under the Banking Act 1959, pertains to Family First Credit Union Limited (the ADI), an authorised deposit-taking institution (ADI) that is not a foreign ADI. The legislation was enacted to address the need for regulatory consent for the sale or disposal of the business of an ADI. The consent is provided by a delegate of the Treasurer, in this instance, Declan Latimer, General Manager of the General Insurance and Banking Division at APRA, in recognition of the national interest. The consent is granted for the sale or disposal of the business of Family First Credit Union Limited to another ADI, Beyond Bank Australia Limited, as detailed in the attached schedule. The policy objective of the Banking Act 1959 is to ensure the stability and soundness of the Australian financial system. This consent instrument reflects the legislative requirement under subsection 63(1) of the Act for the Treasurer, or their delegate, to publish such instruments in the Gazette, ensuring transparency and accountability in the regulatory process. The arrangement or agreement for the sale or disposal of the business is structured as a voluntary total transfer of business under the Financial Sector (Transfer and Restructure) Act 1999.

Scope and Application

The Consent to sale or disposal of business of an ADI 2025 granted to Family First Credit Union Limited is a specific application of the Banking Act 1959, tailored to authorise the sale or disposal of the business of an authorised deposit-taking institution (ADI) that is not a foreign ADI. The Act applies to the Family First Credit Union Limited, an Australian ADI, as it seeks to transfer its business to another ADI, Beyond Bank Australia Limited, through a voluntary total transfer arrangement under the Financial Sector (Transfer and Restructure) Act 1999. This consent is granted by Declan Latimer, a delegate of the Treasurer, who has considered the national interest in making this decision. The geographic reach of the Act is national, as it concerns the authorisation of a significant transaction between two Australian financial institutions. The Act does not explicitly outline exclusions, exemptions, or thresholds, but the consent is contingent upon the consideration of the national interest and the specific conditions outlined in the schedule. The application of the Act may also extend through subordinate instruments, which could provide further detail on the conditions and processes for such transactions.

Key Provisions

The primary operative sections of the Consent to Sale or Disposal of Business of an ADI 2025 concern the authorisation of a specific business arrangement between Family First Credit Union Limited and Beyond Bank Australia Limited. Under section 63(1) of the Banking Act 1959, the delegate of the Treasurer, Declan Latimer, has provided consent for Family First Credit Union Limited to proceed with the sale or disposal of its business to another authorised deposit-taking institution (ADI), Beyond Bank Australia Limited. This consent is contingent upon the ADI not being a foreign ADI and the Treasurer, or their delegate, taking the national interest into account. The obligations and requirements imposed by this legislation on the parties involved are primarily administrative and procedural. Family First Credit Union Limited must ensure that the proposed arrangement or agreement complies with the conditions set out in the schedule, which includes a voluntary total transfer of business under the Financial Sector (Transfer and Restructure) Act 1999. Beyond Bank Australia Limited, as the acquiring institution, must also adhere to the terms and conditions of the arrangement as approved by the Treasurer's delegate. Both parties must ensure that all required notifications and disclosures are made in accordance with the Act. Failure to comply with the provisions of the Banking Act 1959 or the conditions of the consent may result in various civil or criminal consequences. The Act stipulates that breaches of its provisions may lead to penalties, including fines and potential imprisonment for individuals involved in the breach. The specific maximum penalties are not detailed in the consent but would be governed by the relevant sections of the Banking Act 1959 and any other applicable legislation. It is also worth noting that the Treasurer, or their delegate, is required to publish this consent in the Gazette, ensuring transparency and public notification of the arrangement.