Notice of name change of authorised deposit-taking institution - Endeavour Mutual Bank Limited

Overview

The Gazette Notice C2018G00095, dated 9 February 2018, pertains to the Banking Act 1959, which was enacted to regulate and oversee the operations of authorised deposit-taking institutions in Australia. This legislation was introduced to address the need for a regulatory framework to ensure the safety, soundness, and efficiency of the banking sector, thereby protecting depositors and maintaining public confidence in the financial system. The notice is issued by Mark Adams, a delegate of the Australian Prudential Regulation Authority (APRA), acting under the authority granted by the Banking Act. The policy objective behind this notice is to ensure a smooth transition in the name of the authorised deposit-taking institution, Select Encompass Credit Union Limited, to Endeavour Mutual Bank Limited, while maintaining the same regulatory authority and oversight.

Scope and Application

The Banking Act 1959 applies to authorised deposit-taking institutions (ADIs) and their activities within Australia, providing a regulatory framework for the banking sector to ensure financial stability and protect consumers. The scope of this Act encompasses both the institutions themselves and their operations, including the conduct and transactions they undertake. In the case of Select Encompass Credit Union Limited, which has changed its name to Endeavour Mutual Bank Limited, the Act applies to the institution's restructured identity and its ongoing operations as an ADI. The Authority granted under section 9 of the Act transfers to the new entity, Endeavour Mutual Bank Limited, upon the name change notification published in the Gazette. This legislative framework ensures that the transition maintains regulatory oversight and consumer protection. The Act's application is national, with the Australian Prudential Regulation Authority (APRA) overseeing compliance across the Commonwealth. The notice of the name change is a formal administrative procedure under the Act, ensuring that the regulatory authority remains updated and effective in its oversight of financial institutions.

Key Provisions

The Notice of name change of the authorised deposit-taking institution, issued under the Banking Act 1959 (the Act), indicates that Select Encompass Credit Union Limited has officially changed its name to Endeavour Mutual Bank Limited (paragraph 9B(1)(b)). This change is effective from the date of publication of the Notice in the Gazette, under subsection 9B(3) of the Act, where the Authority previously held by Select Encompass Credit Union Limited is now deemed to be granted to Endeavour Mutual Bank Limited. The main sections of the Act relevant to this Notice include section 9, which pertains to the Authority granted to authorised deposit-taking institutions, and section 9B, which details the procedure for notifying the public of changes to the name of an institution holding such an Authority. The Authority allows the institution to operate as a bank and is a critical aspect of its regulatory standing. In terms of obligations, the Act imposes on the parties involved, the Notice mandates that the change of name be formally communicated to the public. This ensures that all stakeholders, including customers, regulators, and the general public, are informed of the institutional name change. The Authority, which was originally held by Select Encompass Credit Union Limited, is now effectively held by Endeavour Mutual Bank Limited, preserving the institution's regulatory status and operations. Regarding the potential consequences of non-compliance, the Act does not explicitly detail offences, penalties, or civil/criminal consequences for failing to notify a name change as required. However, the failure to adhere to the notification requirements could potentially lead to regulatory scrutiny or actions from the Australian Prudential Regulation Authority (APRA), which oversees the compliance of authorised deposit-taking institutions. It is essential for institutions to follow the prescribed procedures to maintain their regulatory standing and avoid any adverse consequences.