Notice of name change of authorised deposit-taking institution - Police Bank Ltd

Overview

The Banking Act 1959 was enacted to provide for the regulation of banking institutions in Australia, ensuring financial stability and consumer protection. The legislation established a framework for the supervision of authorised deposit-taking institutions (ADIs), including banks, credit unions and building societies. The Act aims to maintain the safety and soundness of the banking system and protect depositors’ interests. The Notice of Name Change of Authorised Deposit-taking Institution, published in the Gazette in 2012, is an example of how the Act facilitates the transition of an institution’s name while maintaining the continuity of its regulatory status. This notification, issued under the authority of the Australian Prudential Regulation Authority (APRA), ensures that the institution’s existing authority remains valid despite the name change. The policy objective of the Act is to provide a clear and efficient process for authorised deposit-taking institutions to alter their names, thereby maintaining the integrity and stability of the financial system while ensuring that consumers and stakeholders are properly informed of such changes.

Scope and Application

The Banking Act 1959 governs the operation and regulation of authorised deposit-taking institutions in Australia, including credit unions and banks. This legislative instrument specifically pertains to the notification of a name change for an authorised deposit-taking institution, as outlined in this Gazette Notice. The Act applies to entities that hold an authority under section 9, in this case The Police Department Employees' Credit Union Limited, which has changed its name to Police Bank Ltd. The change of name notification process is conducted under the authority of a delegate of the Australian Prudential Regulation Authority (APRA), ensuring that all changes to the name of institutions authorised under the Act are formally recognised and updated in the relevant records. This legal notification confirms that upon the publication of the Notice in the Gazette, the institution's Authority will be deemed to have been granted to the new entity name, Police Bank Ltd, thereby maintaining continuity in the institution's regulatory standing and obligations.

Key Provisions

The key provisions of this Notice under the Banking Act 1959 involve the change of name of an authorised deposit-taking institution. Specifically, section 9B(1)(b) of the Act empowers a delegate of the Australian Prudential Regulation Authority (APRA) to be satisfied that an authorised deposit-taking institution has changed its name. Here, Brandon Kong Leong Khoo, as a delegate of APRA, confirms that The Police Department Employees' Credit Union Limited, which holds an authority under section 9 of the Act, has changed its name to Police Bank Ltd (section 9B(1)(b)). Section 9B(3) of the Act stipulates that upon the publication of this Notice in the Gazette, the Authority originally granted to The Police Department Employees' Credit Union Limited is deemed to have been granted to Police Bank Ltd. This transition ensures that the new entity, Police Bank Ltd, inherits all the rights and obligations of the former institution under the Act. The obligations imposed by the Act on the parties involved include ensuring that the name change is formally communicated to APRA and the public. This is achieved through the formal Notice published in the Gazette. The institution must ensure that it complies with all statutory requirements and maintains its authorisation status, which is now transferred to the new name, Police Bank Ltd. The Act does not specify any particular offences or penalties for failure to comply with the name change notification. However, the institution must adhere to the notification requirements to avoid any potential regulatory scrutiny or issues with maintaining its authorisation status. The consequences of non-compliance could include regulatory actions or penalties if the institution fails to maintain compliance with its authorisation terms under the Act.