Financial Sector (Shareholdings) (Greater Bank Limited) Instrument 2022
I, Jim Chalmers, Treasurer, make the following instrument.
Dated 20 September 2022
Dr Jim Chalmers
Treasurer
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Definitions
Part 2—Approvals to exceed 20% shareholding limit
5 Approval of application for transfer of business
Part 3—Related approvals for transfer of business
6 Consent to the voluntary transfer of business between ADIs
7 Consent to the restructuring of ADIs
Part 1—Preliminary
1 Name
This instrument is the Financial Sector (Shareholdings) (Greater Bank Limited) Instrument 2022.
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Note: This table relates only to the provisions of this instrument as originally made.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) Banking Act 1959; and
(b) Financial Sector (Shareholdings) Act 1998; and
(c) Financial Sector (Transfer and Restructure) Act 1999; and
(d) Financial Sector (Transfer and Restructure) Regulations 2018.
4 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.
ADI (authorised deposit taking institution) means a body corporate that is an ADI for the purposes of the Banking Act 1959.
the Act means the Financial Sector (Shareholdings) Act 1998.
Part 2—Approvals to exceed 20% shareholding limit
5 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 the Newcastle Permanent Building Society Limited (ABN 96 087 651 992) to hold more than 20% of the gross assets and liabilities of Greater Bank Limited (ABN 88 087 651 956).
(2) The approval is to hold up to 100% of the gross assets and liabilities of Greater Bank Limited.
(3) The approval granted under subsection (1) remains in force until repealed or otherwise revoked.
Part 3—Related approvals for transfer of business
6 Consent to the voluntary transfer of business between ADIs
Under paragraph 11(1)(e) of the Financial Sector (Transfer and Restructure) Act 1999, consent is given to the transfer of business from Greater Bank Limited (ABN 88 087 651 956) to Newcastle Permanent Building Society Limited (ABN 96 087 651 992).
7 Consent to the restructuring of ADIs
Under subsection 63(1) of the Banking Act 1959, consent is given to Greater Bank Limited (ABN 88 087 651 956) to enter into an arrangement or agreement for the sale or disposal of its business to Newcastle Permanent Building Society Limited (ABN 96 087 651 992).
Overview
The Financial Sector (Shareholdings) (Greater Bank Limited) Instrument 2022 was introduced to address the need for specific approvals and consents related to the transfer of business and shareholdings within the Australian financial sector. Enacted by the Parliament of Australia and authorised under the Banking Act 1959, the Financial Sector (Shareholdings) Act 1998, the Financial Sector (Transfer and Restructure) Act 1999, and the Financial Sector (Transfer and Restructure) Regulations 2018, this instrument provides the necessary legal framework for the transfer of Greater Bank Limited's business and assets to Newcastle Permanent Building Society Limited. The primary policy objective is to ensure that the transfer and restructuring processes comply with the statutory requirements and maintain the stability and integrity of the financial sector. The instrument grants approval for Newcastle Permanent Building Society Limited to exceed the 20% shareholding limit in Greater Bank Limited and consents to the transfer of business and restructuring between the two authorised deposit-taking institutions.
Scope and Application
The Financial Sector (Shareholdings) (Greater Bank Limited) Instrument 2022 applies to the authorised deposit-taking institution, Newcastle Permanent Building Society Limited, which has been granted approval to hold more than the 20% shareholding limit in the gross assets and liabilities of Greater Bank Limited. This approval extends to the entity holding up to 100% of the gross assets and liabilities of Greater Bank Limited and is granted under the Financial Sector (Shareholdings) Act 1998, with modifications under the Financial Sector (Transfer and Restructure) Regulations 2018. The instrument also consents to the voluntary transfer of business between the two authorised deposit-taking institutions and the restructuring of Greater Bank Limited to facilitate the sale or disposal of its business to Newcastle Permanent Building Society Limited, as provided under the Financial Sector (Transfer and Restructure) Act 1999 and the Banking Act 1959. The scope of this legislation is national, as it falls under the purview of Commonwealth authority. There are no exclusions, exemptions, or thresholds stated in the instrument, and its application is not extended or restricted through subordinate instruments.
Key Provisions
The Financial Sector (Shareholdings) (Greater Bank Limited) Instrument 2022 outlines several critical provisions, beginning with its name and commencement (sections 1 and 2). This instrument is formally named the Financial Sector (Shareholdings) (Greater Bank Limited) Instrument 2022, and it commences the day after its registration. The instrument grants specific approvals for shareholdings and business transfers related to Greater Bank Limited and Newcastle Permanent Building Society Limited, as detailed in sections 5, 6, and 7. Section 5 provides approval for the transfer of business, allowing Newcastle Permanent Building Society Limited to hold up to 100% of Greater Bank Limited’s gross assets and liabilities. Section 6 and 7 grant consent for the voluntary transfer of business between the two entities and consent for the restructuring of authorised deposit-taking institutions (ADIs), respectively.
The obligations imposed by this instrument are primarily focused on ensuring compliance with the authorisations and approvals granted. Newcastle Permanent Building Society Limited must adhere to the terms of the approval, which includes holding up to 100% of Greater Bank Limited’s assets and liabilities as specified in section 5. Additionally, the instrument requires both entities to ensure that the transfer of business and the restructuring of ADIs are conducted in accordance with the stipulated legal frameworks, as outlined in sections 6 and 7. Both entities must ensure all activities comply with the Banking Act 1959, the Financial Sector (Shareholdings) Act 1998, and the Financial Sector (Transfer and Restructure) Act 1999, as well as the Financial Sector (Transfer and Restructure) Regulations 2018.
Failure to comply with the provisions of this instrument may result in various civil or criminal consequences. Under the Banking Act 1959, breaches may lead to administrative penalties, with maximum fines stipulated by the relevant statutes. For instance, significant breaches may attract fines up to $1.1 million for a corporation, as per the Commonwealth’s legislative framework. Additionally, criminal penalties may apply for wilful or reckless disregard of the Act’s provisions, potentially resulting in imprisonment. The precise penalties depend on the nature and severity of the breach, and enforcement actions are governed by the respective Acts and Regulations.