Consent to sale or disposal of business of an authorised deposit-taking institution
Banking Act 1959
TO: The Rock Building Society Limited ABN 16 067 765 717 (the body corporate) SINCE
- the body corporate is an ADI for the purposes of the Banking Act 1959 (the Act); and
B. the body corporate proposes to enter into an arrangement or agreement for the sale or disposal of its business (by amalgamation or otherwise) to MyState Bank Limited ABN 89 067 729 195, as described in the attached Schedule (the sale or disposal); and
C. I have taken into account the national interest.
I, Stephen Edward Glenfield, a delegate of the Treasurer, under subsection 63(1) of the Act, CONSENT to the sale or disposal.
Dated 28 September 2015
[Signed]
Stephen Edward Glenfield General Manager
Specialised Institutions Division South West Region
Interpretation Document ID: 219080
In this Notice
APRA means the Australian Prudential Regulation Authority.
ADI is short for authorised deposit-taking institution and has the meaning given in subsection 5(1) of the Act.
foreign ADI has the meaning given in subsection 5(1) of the Act.
Note 1
By virtue of subsection 63(2) of the Act, any arrangement, agreement or reconstruction and any
such sale or disposal in pursuance of any such agreement or arrangement, entered into without the prior consent of the Treasurer is void and of no effect. Subsection 63(3) provides that the consent of the Treasurer shall not be unreasonably withheld.
Note 2
Under subsection 63(1AA) of the Act, the Treasurer must arrange for notice of this consent to be
published in the Gazette as soon as practicable.
Note 3
Under subsection 63(1) of the Act, an ADI, other than a foreign ADI, is guilty of an offence if the
ADI enters into an arrangement or agreement for the sale or disposal of its business or for carrying on business in partnership with another ADI, or effects a reconstruction of the ADI, without the Treasurer’s prior consent in writing. The maximum penalty is 200 penalty units.
Note 4
offence.
Note 5
Under subsection 63(1A) of the Act, an offence against subsection 63(1) of the Act is an indictable
Under paragraph 63(5)(a) of the Act, the Treasurer may, in writing, delegate all or any of his or her
powers under subsection 63 to APRA, an APRA member or an APRA staff member.
Schedule
An arrangement for a voluntary total transfer of business under the Financial Sector (Business Transfer and Group Restructure) Act 1999.
Overview
The Banking Act 1959 was enacted to regulate authorised deposit-taking institutions (ADIs) and ensure the stability of the financial system. The Act addresses the need for stringent oversight of the sale or disposal of ADI businesses to safeguard the national interest and maintain financial stability. The consent to the sale or disposal of The Rock Building Society Limited's business to MyState Bank Limited, granted by Stephen Edward Glenfield, a delegate of the Treasurer, exemplifies the Act's policy objective to prevent such transactions from occurring without proper authorisation, thereby protecting consumers and the broader financial system. The consent process ensures that any sale or disposal of an ADI's business aligns with national financial interests and adheres to regulatory standards.
Scope and Application
The Banking Act 1959 applies to authorised deposit-taking institutions (ADIs) in Australia, including The Rock Building Society Limited, which seeks consent from the Treasurer to enter into an agreement for the sale or disposal of its business to MyState Bank Limited. The consent must be given in writing and cannot be unreasonably withheld, with the primary consideration being the national interest. The Treasurer’s consent is essential for any arrangement or agreement for the sale or disposal of an ADI’s business, with failure to obtain such consent rendering any such arrangement void and of no effect. Additionally, the Treasurer has the authority to delegate their powers to the Australian Prudential Regulation Authority (APRA) or its members or staff, further enabling the regulation of financial institutions. This legislative framework ensures that significant changes in the business operations of ADIs are properly scrutinised and authorised to safeguard the stability and integrity of the financial sector.
Key Provisions
The Banking Act 1959, as amended, mandates that an authorised deposit-taking institution (ADI) must obtain the prior written consent of the Treasurer before entering into any arrangement or agreement for the sale or disposal of its business (section 63(1)). The document in question provides explicit consent for The Rock Building Society Limited, an ADI, to proceed with the sale or disposal of its business to MyState Bank Limited, as detailed in the attached Schedule (section 63). This consent is granted by Stephen Edward Glenfield, a delegate of the Treasurer, who has taken into account the national interest (section 63(1)).
The obligations imposed by the Act on The Rock Building Society Limited include seeking and obtaining the Treasurer’s consent before finalising any sale or disposal of its business (section 63(1)). The Treasurer’s consent must be obtained in writing and cannot be unreasonably withheld (section 63(3)). Additionally, The Rock Building Society Limited must ensure that any sale or disposal arrangement is in accordance with the provisions of the Financial Sector (Business Transfer and Group Restructure) Act 1999.
Failure to obtain the Treasurer’s prior written consent results in the arrangement or agreement being void and of no effect (section 63(2)). The Act stipulates that any ADI, excluding foreign ADIs, that enters into such an arrangement or agreement without consent commits an offence (section 63(1)). The maximum penalty for this offence is 200 penalty units (section 63(1AA)). Furthermore, the Treasurer has the authority to delegate their powers under section 63 to the Australian Prudential Regulation Authority (APRA) or its members or staff (section 63(5)(a)).