Overview

The Consent to Sale or Disposal of Business of an ADI 2026 – Ford Co-operative Credit Society Limited is an instrument issued under the Banking Act 1959. This Act was enacted to regulate the operations of authorised deposit-taking institutions (ADIs) in Australia, ensuring they adhere to sound banking practices and maintain financial stability. The primary problem or gap this legislation addresses is the need for regulatory oversight and approval when an ADI proposes to sell or dispose of its business to another ADI, ensuring that the transaction is in the national interest and does not compromise the stability of the financial system. The instrument was issued by Declan Latimer, a delegate of the Treasurer, under subsection 63(1) of the Banking Act 1959. The policy objective underlying this consent is to protect the national interest by ensuring that any sale or disposal of business by an ADI is conducted in a manner that maintains the stability and integrity of the financial sector. This consent specifically allows Ford Co-operative Credit Society Limited, an ADI, to enter into an arrangement for the sale or disposal of its business to another ADI, Hume Bank Limited, as detailed in the schedule. The Treasurer, or their delegate, is required to publish this instrument in the Gazette to provide transparency and ensure public awareness of the approved transaction.

Scope and Application

The Consent to sale or disposal of business of an ADI 2026 – Ford Co-operative Credit Society Limited, issued under the Banking Act 1959, applies specifically to Ford Co-operative Credit Society Limited, a designated Australian Deposit-taking Institution (ADI) that is not a foreign ADI, and to Hume Bank Limited, another ADI involved in the proposed arrangement for the sale or disposal of Ford Co-operative's business. The consent granted by the delegate of the Treasurer, Declan Latimer, pertains to the specific arrangement or agreement outlined in the attached schedule, which describes a voluntary total transfer of business under the Financial Sector (Transfer and Restructure) Act 1999. The geographic reach of this legislation is national, as it concerns the sale or disposal of business between two Australian institutions. There are no exclusions, exemptions, or thresholds specified within the text of the consent, but the application of the Act can be extended or restricted through subordinate instruments issued under its authority. The consent itself is published in the Gazette as required by the Act.

Key Provisions

The Consent to Sale or Disposal of Business of an ADI 2026 (Gazette) issued under subsection 63(1) of the Banking Act 1959 (the Act) consents to the arrangement or agreement for Ford Co-operative Credit Society Limited (the ADI) to sell or dispose of its business to Hume Bank Limited, another authorised deposit-taking institution (ADI) (sections 1 and 2). This consent is granted because the ADI is not a foreign ADI, and the arrangement involves a voluntary total transfer of business under the Financial Sector (Transfer and Restructure) Act 1999. The document is signed by Declan Latimer, a delegate of the Treasurer, indicating that the national interest has been considered in granting this consent. Under the Act, certain obligations and requirements are imposed on the ADI and the acquiring institution, Hume Bank Limited. These obligations include ensuring that the sale or disposal of the ADI’s business complies with all relevant legislative requirements and regulatory standards. Both institutions must provide any necessary information to the Australian Prudential Regulation Authority (APRA) and the Treasurer to facilitate the review and approval process. The ADI must also ensure that customers, members, and other stakeholders are adequately informed about the sale and its implications. Failure to comply with the provisions of the Act or the conditions outlined in the consent may result in civil or criminal penalties. Under the Act, breaches of certain provisions can lead to significant fines for both individuals and corporations. For example, section 112 of the Act provides that an individual who contravenes the Act may be fined up to 5,000 penalty units, while a corporation may be fined up to 25,000 penalty units. Additionally, officers of the ADI who are found to be involved in the breach may also face personal penalties. These penalties underscore the importance of strict compliance with the legislative requirements governing the sale or disposal of an ADI's business.