Overview

The Banking Act 1959, enacted by the Commonwealth Parliament, was established to provide a framework for the regulation of authorised deposit-taking institutions (ADIs) to ensure the stability and efficiency of the financial system. The Act addresses gaps in the regulation of banking operations, allowing for the oversight and control of ADIs to maintain public confidence in the financial system. This legislative instrument, issued under the authority of the Australian Prudential Regulation Authority (APRA), serves to formalise and notify the name changes of ADIs, ensuring that all stakeholders are aware of the latest organisational structure and identity of these financial institutions. The policy objective is to ensure transparency and clarity in the operations of ADIs, facilitating effective supervision and consumer protection within the financial sector.

Scope and Application

The Banking Act 1959 applies to authorised deposit-taking institutions (ADIs), which are financial institutions authorised to operate under the Act. In this context, the Act specifically pertains to Woolworths Employees’ Credit Union Limited, which has undergone a name change to Woolworths Community Bank Limited and subsequently to Woolworths Team Bank Limited. This change in name does not alter the institution's authorisation under the Act, but rather updates its public identity. The application of the Act is governed by the Commonwealth of Australia, with the Australian Prudential Regulation Authority (APRA) overseeing the compliance of ADIs, including the institution's adherence to the legislative changes. There are no stated exclusions or exemptions in this particular notification, and the changes in name do not affect the jurisdictional reach or the thresholds for the institution's operation as an authorised deposit-taking institution. The Act allows for the extension or restriction of its application through subordinate instruments, which may be utilised to further define the operational parameters of the institution following its name changes.

Key Provisions

The key provisions of the Gazette, C2019G00951, revolve around the name changes of an authorised deposit-taking institution as per section 9B(1)(b) of the Banking Act 1959. Under this section, Suzanne Smith, as a delegate of the Australian Prudential Regulation Authority (APRA), has confirmed that Woolworths Employees’ Credit Union Limited, which holds an authority under section 9 of the Act, has legally changed its name to Woolworths Community Bank Limited on 30 April 2019, and subsequently to Woolworths Team Bank Limited on 28 August 2019. This notification is crucial as it formalises the transition of the institution's identity within the regulatory framework of the Act. The obligations imposed by this Act on the institution, now operating under the new names, include ensuring that all necessary regulatory documentation and public records reflect the updated name. This involves notifying stakeholders, updating official documents, and making corresponding changes in all communications and filings with APRA and other relevant authorities. Such actions are necessary to maintain compliance with regulatory standards and to ensure transparency and continuity in operations. Non-compliance with the provisions of the Act regarding name changes can lead to serious consequences. Although specific offences and penalties are not detailed within the text of this Gazette, the Banking Act 1959 generally provides for both civil and criminal penalties for breaches. These may include fines, imprisonment, or both, depending on the severity and intent of the breach. Additionally, failure to adhere to the mandated name change could result in the institution losing its authorisation, which would severely impact its ability to operate legally within the Australian financial sector. It is therefore imperative for the institution to meticulously follow the procedural requirements set forth by the Act to avoid any potential legal repercussions.