Financial Sector (Shareholdings) (Allianz Australia Limited) 2023
I, Jim Chalmers, Treasurer, make the following instrument.
Dated 6 November 2023
Dr Jim Chalmers
Treasurer
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Schedules
5 Definitions
Part 2—Approvals to exceed 20% shareholding limit
6 Approval of application
Schedule 1—Repeals
Revocation of existing approval and granting of new approval to hold a stake in a financial sector company of more than 20% No. 10 of 2021 [F2021N00085]
Part 1—Preliminary
1 Name
This instrument is the Financial Sector (Shareholdings) (Allianz Australia Limited) Instrument 2023.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Financial Sector (Shareholdings) Act 1998.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
5 Definitions
Note: Paragraph 13(1)(b) of the Legislation Act 2003 has the effect that expressions have the same meaning in this instrument as in the Financial Sector (Shareholdings) Act 1998 as in force from time to time.
In this instrument:
ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.
the Act means the Financial Sector (Shareholdings) Act 1998.
Part 2—Approvals to exceed 20% shareholding limit
6 Approval of application
(1) Under paragraph 14(1)(a) of the Act, each applicant covered by subsection (2) is granted approval:
(a) to hold more than a 20% stake in a financial sector company covered by subsection (3); and
(b) to hold no more of the stake specified in the financial sector company as is specified in subsection (3).
(2) For the purposes of subsection (1), an applicant is covered by this subsection if the applicant is listed in an item of the following table:
Item | Name of applicant | ABN of applicant (if any) |
1 | Allianz SE | |
2 | Allianz Financial II Luxembourg S.à.r.l | |
3 | Allianz Europe BV | |
4 | Allianz Asia Holding Pte. Ltd. | |
5 | Allianz Australia Limited | 21 000 006 226 |
6 | Allianz Australia Insurance Limited | 15 000 122 850 |
(3) For the purposes of subsection (1), a financial sector company is covered by this subsection if the company is listed in an item of the following table:
Item | Financial sector company | ABN of financial sector company (if any) | Approved holding in the financial sector company |
1 | Allianz Asia Holding Pte. Ltd. | | 100% |
2 | Allianz Australia Limited | 21 000 006 226 | 100% |
3 | Allianz Australia Insurance Limited | 15 000 122 850 | 100% |
4 | Allianz Australia General Insurance Limited | 99 003 719 319 | 100% |
5 | CIC Allianz Insurance Limited | 56 094 802 801 | 100% |
(4) To avoid doubt, subsection (1) does not have the effect of granting an applicant approval to hold any stake in itself.
(5) The approvals granted under subsection (1) remain in force until repealed or otherwise revoked.
Schedule 1—Repeals
Revocation of existing approval and granting of new approval to hold a stake in a financial sector company of more than 20% No. 10 of 2021 [F2021N00085]
The whole of the instrument
Repeal the instrument.
Overview
The Financial Sector (Shareholdings) (Allianz Australia Limited) Instrument 2023 was made by Dr Jim Chalmers, the Treasurer, and is an instrument under the Financial Sector (Shareholdings) Act 1998. This legislation was introduced to address the need to regulate and approve shareholdings in financial sector companies to ensure financial stability and protect the interests of consumers and the broader economy. The instrument provides for the approval of specified entities within the Allianz group to hold more than a 20% stake in certain financial sector companies, replacing and revoking previous approvals. The instrument aims to ensure that significant shareholdings in financial institutions are subject to regulatory oversight, thereby maintaining the integrity and stability of the financial sector. The instrument is designed to streamline and update the approvals process for these shareholdings, ensuring that the regulatory framework remains effective and responsive to the evolving financial landscape.
Scope and Application
The Financial Sector (Shareholdings) (Allianz Australia Limited) Instrument 2023 is made under the Financial Sector (Shareholdings) Act 1998 and provides specific approvals for entities within the Allianz Group to hold stakes in certain financial sector companies exceeding the 20% shareholding limit. The instrument applies to specified entities within the Allianz Group, including Allianz SE, Allianz Financial II Luxembourg S.à.r.l, Allianz Europe BV, Allianz Asia Holding Pte. Ltd, Allianz Australia Limited, and Allianz Australia Insurance Limited, identified by their names and Australian Business Numbers (ABN). The instrument grants these entities approval to hold stakes exceeding 20% in Allianz Australia Limited, Allianz Australia Insurance Limited, Allianz Australia General Insurance Limited, and CIC Allianz Insurance Limited. The instrument comes into effect the day after it is registered and applies within Australia’s jurisdiction. It specifically excludes any approvals for entities to hold stakes in themselves and repeals a previous instrument concerning shareholdings in the financial sector. The instrument’s application may be extended or restricted through any subordinate instruments made under the Financial Sector (Shareholdings) Act 1998.
Key Provisions
The Financial Sector (Shareholdings) (Allianz Australia Limited) Instrument 2023 (F2023N00504) outlines the key provisions for the approval of shareholding limits within the financial sector. According to section 6 of Part 2, this instrument grants specified applicants the approval to hold more than a 20% stake in certain financial sector companies, with conditions on the extent of the stake that can be held. The instrument specifies which applicants, listed in the accompanying table, are eligible for this approval (section 6(2)). It also details the financial sector companies for which the approval applies (section 6(3)), and clarifies that the approval does not extend to holdings in the applicant companies themselves (section 6(4)). These approvals are in effect until they are repealed or revoked.
The obligations imposed by this Act on the parties involved include ensuring compliance with the shareholding limits specified. Specifically, the applicants listed must adhere to the conditions of their approval, which includes not exceeding the specified stake in the financial sector companies. This is to maintain the integrity and stability of the financial sector by preventing undue concentration of ownership. The applicants are required to keep records and provide any necessary information to the relevant authorities to demonstrate compliance.
In terms of consequences for non-compliance, while the instrument does not explicitly state penalties for breaches, the Financial Sector (Shareholdings) Act 1998 under which this instrument is made, may impose sanctions. Under the Act, unauthorised shareholdings could result in civil penalties. The severity of these penalties would depend on the nature and extent of the breach, but could include fines and potential legal action to rectify the situation. The Act also allows for the revocation of approval, which would prevent the applicant from holding the specified stake in the future.