Notice of name change of authorised deposit-taking institution - Encompass Credit Union Limited

Overview

The Notice of Name Change of Authorised Deposit-Taking Institution under the Banking Act 1959 was introduced to ensure that the legal framework remains current and accurate in relation to the names of financial institutions authorised to operate in Australia. Enacted by the Commonwealth Parliament, the Banking Act 1959 was established to regulate and oversee the operations of authorised deposit-taking institutions (ADIs), including credit unions. The policy objective behind this piece of legislation is to maintain transparency and clarity in the financial sector by ensuring that all authorised institutions are correctly identified and regulated. This particular notice, issued by Keith Chapman, a delegate of the Australian Prudential Regulation Authority (APRA), addresses the formal change of name from Encompass Credit Union Limited to Select Encompass Credit Union Ltd, ensuring the institution's regulatory authority remains uninterrupted and is accurately reflected in the legislative framework.

Scope and Application

The Notice of name change of authorised deposit-taking institution under the Banking Act 1959 applies to Encompass Credit Union Limited, which holds an authority under section 9 of the Act, and has undergone a name change to Select Encompass Credit Union Ltd. This Notice, issued by Keith Chapman, a delegate of the Australian Prudential Regulation Authority (APRA), informs the public of this change and specifies that the Authority is taken to have effect as if it had been granted to the newly named entity, Select Encompass Credit Union Ltd, following its publication in the Gazette. The Act governs authorised deposit-taking institutions and their operations within Australia, and this Notice ensures that the transition in name is properly documented and recognised under the Act. The jurisdictional reach of the Act is national, applying across all states and territories in Australia. There are no stated exclusions, exemptions, or thresholds in this Notice, and the application of the Act extends through subordinate instruments to ensure compliance and regulation of the financial sector.

Key Provisions

The primary operative section of this notice, under subsection 9B(3) of the Banking Act 1959, provides that the Authority held by Encompass Credit Union Limited is deemed to have been granted to Select Encompass Credit Union Ltd upon the publication of this notice in the Gazette. This essentially formalises the name change of the authorised deposit-taking institution, ensuring that the institution's regulatory authority remains in place despite the change in name. Keith Chapman, a delegate of the Australian Prudential Regulation Authority (APRA), is satisfied that the name change complies with the requirements of the Act, as indicated in paragraph 9B(1)(b). The Authority, originally granted under section 9 of the Act, continues to apply to the institution under its new name, Select Encompass Credit Union Ltd. The Banking Act 1959 imposes several obligations and requirements on the parties it governs. Firstly, institutions holding an Authority under the Act must notify APRA of any significant changes, including a change in name, to ensure regulatory continuity and compliance. The institution must also provide the necessary documentation and evidence to satisfy APRA that the name change is legitimate and does not affect its regulatory status. APRA, in turn, is required to review the application and make a determination based on the information provided. This process ensures that the institution's operations and compliance with banking regulations are not disrupted by a change in name. In the event of non-compliance with the provisions of the Banking Act 1959, there can be significant consequences. While the notice does not explicitly state the penalties for non-compliance, breaches of the Act can lead to enforcement actions by APRA, which may include fines, sanctions, or even the revocation of the institution's Authority. The maximum penalties for breaches can vary widely depending on the severity and nature of the offence. Under Australian law, serious breaches of financial services legislation can result in substantial financial penalties, and in some cases, criminal charges against individuals responsible for the breach. It is therefore crucial for institutions to adhere to the requirements of the Act to avoid such adverse outcomes.