Financial Sector (Shareholdings) (Members Equity Bank Limited) Amendment Instrument 2022
I, Michael Sukkar, Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, make the following instrument.
Dated 16 February 2022
Michael Sukkar
Assistant Treasurer
Minister for Housing
Minister for Homelessness, Social and Community Housing
Contents
1 Name
2 Commencement
3 Authority
4 Schedules
Schedule 1—Amendments
Financial Sector (Shareholdings) (Members Equity Bank Limited) Instrument 2021
1 Name
This instrument is the Financial Sector (Shareholdings) (Members Equity Bank Limited) Amendment 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Note: This table relates only to the provisions of this instrument as originally made.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 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Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.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) (Members Equity Bank Limited) Instrument 2021
1 Section 3
Repeal the section, substitute:
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.
2 Section 4
Insert:
ADI (authorised deposit‑taking institution) means a body corporate that is an ADI for the purposes of the Banking Act 1959.
3 At the end of the instrument
Add:
6 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 Bank of Queensland Limited (ABN 32 009 656 740) to hold 100% of the gross assets and liabilities of Members Equity Bank Limited (ABN 56 070 887 679).
(2) The approval granted under subsection (1) remains in force until repealed or otherwise revoked.
Part 3—Related approvals for transfer of business
7 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 Members Equity Bank Limited (ABN 56 070 887 679) to Bank of Queensland Limited (ABN 32 009 656 740).
8 Consent to the restructuring of ADIs
Under subsection 63(1) of the Banking Act 1959, consent is given to Members Equity Bank Limited (ABN 56 070 887 679) to enter into an arrangement or agreement for the sale or disposal of its business to Bank of Queensland Limited (ABN 32 009 656 740).
Overview
The Financial Sector (Shareholdings) (Members Equity Bank Limited) Amendment Instrument 2022 was enacted to address the need for regulatory approval concerning the transfer of business between authorised deposit-taking institutions (ADIs). This instrument was made under the authority of 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. The policy objective of this instrument is to facilitate the transfer of business from Members Equity Bank Limited to Bank of Queensland Limited, ensuring that the transition complies with the regulatory framework governing financial sector restructuring and shareholdings in Australia. The instrument grants approval to Bank of Queensland Limited to hold 100% of the gross assets and liabilities of Members Equity Bank Limited, and consents to the voluntary transfer of business and restructuring arrangement between the two entities.
Scope and Application
The Financial Sector (Shareholdings) (Members Equity Bank Limited) Amendment Instrument 2022 is designed to amend the Financial Sector (Shareholdings) (Members Equity Bank Limited) Instrument 2021. This instrument applies to the Bank of Queensland Limited and Members Equity Bank Limited, specifically focusing on their financial holdings and business restructuring activities. The authority for this amendment stems from 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. The instrument grants approval for the Bank of Queensland Limited to hold 100% of the gross assets and liabilities of Members Equity Bank Limited, with this approval remaining in force until repealed or revoked. Furthermore, the instrument provides consent for the voluntary transfer of business between these two authorised deposit-taking institutions (ADIs) and for Members Equity Bank Limited to enter into arrangements or agreements for the sale or disposal of its business to Bank of Queensland Limited. The instrument's scope is limited to the entities and transactions specified within the instrument itself and does not extend to other financial institutions unless explicitly stated in subordinate instruments.
Key Provisions
The Financial Sector (Shareholdings) (Members Equity Bank Limited) Amendment Instrument 2022 (the Instrument) amends the Financial Sector (Shareholdings) (Members Equity Bank Limited) Instrument 2021, providing specific approvals and consents for the transfer of business between Members Equity Bank Limited and Bank of Queensland Limited. Under section 6 of the Instrument, the Assistant Treasurer grants approval to Bank of Queensland Limited to hold 100% of the gross assets and liabilities of Members Equity Bank Limited. This approval remains in effect until repealed or otherwise revoked. In section 7, the Instrument provides consent for the voluntary transfer of business between authorised deposit-taking institutions (ADIs) under the Financial Sector (Transfer and Restructure) Act 1999. Section 8 grants consent for the restructuring of ADIs under the Banking Act 1959, allowing Members Equity Bank Limited to enter into an arrangement or agreement for the sale or disposal of its business to Bank of Queensland Limited.
The Instrument imposes specific obligations on the parties involved in the transfer and restructuring process. Bank of Queensland Limited must hold 100% of the gross assets and liabilities of Members Equity Bank Limited as approved under section 6. The consents granted in sections 7 and 8 require Members Equity Bank Limited and Bank of Queensland Limited to adhere to the conditions and requirements set out in the respective Acts and Regulations. These obligations include ensuring a smooth transition of business operations and maintaining compliance with relevant financial sector regulations.
The Instrument does not explicitly state offences, penalties, or consequences for breach. However, the underlying Acts and Regulations, such as the Banking Act 1959, the Financial Sector (Shareholdings) Act 1998, and the Financial Sector (Transfer and Restructure) Regulations 2018, may contain provisions that address non-compliance. Under these Acts, breaches could result in civil or criminal penalties, including fines and imprisonment, depending on the severity and nature of the offence. The specific penalties would be determined by the relevant courts when adjudicating on cases of non-compliance.