Notice of name change of authorised deposit- taking institution - Australian Defence Credit Union Limited to Australian Military Bank Ltd

Overview

The Banking Act 1959, enacted by the Commonwealth Parliament, governs the operation of authorised deposit-taking institutions (ADIs) in Australia, aiming to maintain financial stability and protect consumers. This legislation includes provisions for the authorisation, regulation, and supervision of ADIs. The 2015 Gazette notice, C2015G01960, addresses the formal change of name of an authorised deposit-taking institution, specifically Australian Defence Credit Union Limited to Australian Military Bank Ltd. This change is administrative, ensuring that the institution's authorisation under the Act aligns with its new corporate identity. Keith Chapman, a delegate of the Australian Prudential Regulation Authority (APRA), confirms the legal transition of the institution's authority to the new name upon publication in the Gazette. The policy objective behind this change is to ensure clarity and continuity in the regulation and oversight of the financial institution.

Scope and Application

The Banking Act 1959, as amended, governs the operation and regulation of authorised deposit-taking institutions (ADIs) in Australia, including the authorisation process and the conditions under which these institutions may operate. The Act applies to any entity that is granted an authority under section 9, which includes Australian Defence Credit Union Limited (ADCUL), now operating as Australian Military Bank Ltd (AMBL), as detailed in this gazette notice. The notice indicates that the Australian Prudential Regulation Authority (APRA) has approved the name change of ADCUL to AMBL, and the Authority granted under section 9 of the Act is now deemed to apply to AMBL as if it had been granted to it originally. This jurisdictional application extends across the Commonwealth of Australia, encompassing all states and territories, thereby ensuring the nationwide applicability of the legislative provisions regarding banking authorities and operations. There are no stated exclusions or exemptions in this notice; however, the Act itself may contain various exclusions or thresholds that apply to different types of institutions or transactions. The authority and scope of the Act may also be extended or restricted through subordinate instruments issued under its provisions.

Key Provisions

The primary operative sections of the Notice of Name Change of Authorised Deposit-Taking Institution (C2015G01960) under the Banking Act 1959 are sections 9B(1)(b) and 9B(3). Section 9B(1)(b) allows a delegate of the Australian Prudential Regulation Authority (APRA) to be satisfied that an institution holding an authority under section 9 of the Act has changed its name. Section 9B(3) provides that upon the publication of this notice in the Gazette, the Authority is deemed to have been granted to the institution under its new name. This means that Australian Defence Credit Union Limited, which previously held the authority under the Act, now operates as Australian Military Bank Ltd. The Notice imposes several obligations and requirements on the parties involved. Firstly, the institution, Australian Defence Credit Union Limited, must have formally changed its name to Australian Military Bank Ltd and ensured that this change is legally recognised. The delegate of APRA, Keith Chapman, must be satisfied that the name change has occurred and that the institution continues to meet the criteria for holding the authority under section 9 of the Act. Once these conditions are met, the delegate must issue the notice and ensure its publication in the Gazette. This publication formalises the name change, and the Authority is deemed to be validly granted to the institution under its new name. Breaching the requirements of the Banking Act 1959 or failing to comply with the notice's provisions can result in various civil or criminal consequences. While the Notice itself does not specify penalties, the Act generally allows for enforcement actions, including fines and other sanctions, for non-compliance with its provisions. The severity of these penalties can vary depending on the nature and extent of the breach. For instance, under section 134 of the Act, an individual or entity can be fined up to $1,320,000 for serious breaches, while section 136 provides for penalties of up to $1,100,000 for corporations for breaches of specific provisions. These penalties reflect the importance of adhering to the regulatory framework governing authorised deposit-taking institutions in Australia.