Financial Sector (Shareholdings) (Auswide Bank Limited) Amendment Instrument 2025
I, Jim Chalmers, Treasurer, being satisfied of the matter in paragraph 14(1)(a) of the Financial Sector (Shareholdings) Act 1998, make the following instrument.
Dated 27 October 2025
Dr Jim Chalmers
Treasurer
Contents
1 Name
2 Commencement
3 Authority
4 Schedules
Schedule 1—Amendments
Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025
1 Name
This instrument is the Financial Sector (Shareholdings) (Auswide Bank Limited) Amendment Instrument 2025.
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Note: This table relates only to the provisions of this instrument as originally made.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 following:
(a) the Financial Sector (Shareholdings) Act 1998; and
(b) the Financial Sector (Transfer and Restructure) Regulations 2018.
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Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1—Amendments
Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025
1 At the end of section 3
Add:
; and (d) the Financial Sector (Transfer and Restructure) Regulations 2018.
2 Section 6 (note)
Omit “ARPA”, substitute “APRA”.
3 At the end of the instrument:
Add:
8 Approval of application for transfer of business
(1) Under paragraph 14(1)(a) of the Act, as modified by section 8 of the Financial Sector (Transfer and Restructure) Regulations 2018, approval is granted to MyState Bank Limited (ABN 89 067 729 195) to hold more than 20% of the gross assets and liabilities of Auswide Bank Limited (ABN 40 087 652 060).
(2) The approval is to hold up to 100% of the gross assets and liabilities of Auswide Bank Limited.
(3) The approval granted under subsection (1) remains in force until repealed or otherwise revoked.
Overview
The Financial Sector (Shareholdings) (Auswide Bank Limited) Amendment Instrument 2025 was enacted to address a specific need for regulatory approval concerning shareholdings in the financial sector, particularly focusing on the acquisition of Auswide Bank Limited by MyState Bank Limited. This notifiable instrument was made under the authority of the Financial Sector (Shareholdings) Act 1998 and the Financial Sector (Transfer and Restructure) Regulations 2018. The policy objective is to ensure that the proposed acquisition aligns with the regulatory framework and maintains financial stability within the sector. The instrument grants MyState Bank Limited the approval to hold up to 100% of the gross assets and liabilities of Auswide Bank Limited, with this approval remaining in effect until repealed or revoked.
Scope and Application
The Financial Sector (Shareholdings) (Auswide Bank Limited) Amendment Instrument 2025 applies to MyState Bank Limited, specifically allowing it to hold a significant shareholding in Auswide Bank Limited, up to 100% of the gross assets and liabilities. This instrument is a legislative tool used to modify existing financial sector regulations concerning bank shareholdings. It operates within the jurisdictional reach of the Commonwealth of Australia and applies to the specific entities mentioned—MyState Bank Limited and Auswide Bank Limited—as well as the broader financial sector. The instrument extends the authority under the Financial Sector (Shareholdings) Act 1998 and the Financial Sector (Transfer and Restructure) Regulations 2018 to facilitate the restructuring and transfer of business within the financial sector. The approval granted by this instrument remains in effect until it is repealed or otherwise revoked.
Key Provisions
The Financial Sector (Shareholdings) (Auswide Bank Limited) Amendment Instrument 2025 (sections 1-4) introduces modifications to existing legislation to allow MyState Bank Limited to hold more than the statutory limit of 20% of Auswide Bank Limited's gross assets and liabilities. Specifically, section 1 of the instrument provides for the addition of the Financial Sector (Transfer and Restructure) Regulations 2018 to the list of applicable laws, while section 2 corrects a typographical error from "ARPA" to "APRA". The instrument comes into effect the day after its registration, as stated in section 2, and amends the Financial Sector (Shareholdings) (Auswide Bank Limited) Instrument 2025 by adding a new section 8 (section 4).
Entities governed by this legislation, including MyState Bank Limited and Auswide Bank Limited, must comply with the amended shareholding limits and ensure that any changes in ownership or control are reported to the relevant regulatory authorities. They must also adhere to the ongoing obligations and requirements set forth in the Financial Sector (Shareholdings) Act 1998 and the Financial Sector (Transfer and Restructure) Regulations 2018.
Failure to comply with the provisions of this legislation could result in legal consequences. For instance, holding more than the approved percentage of gross assets and liabilities without proper authorisation can lead to significant penalties. The maximum penalties for breaches of the Financial Sector (Shareholdings) Act 1998 include substantial fines and potential criminal charges for directors or officers of the entities involved. The precise penalties depend on the nature and severity of the breach but are intended to enforce compliance and maintain the integrity of the financial sector.