Notice revoking conditions on Authority to carry on banking business
Banking Act 1959
SINCE
- Tyro Payments Limited 49 103 575 042 (the ADI) holds an authority to carry on banking business in Australia (the Authority) under section 9 of the Banking Act 1959 (the Act); and
B. the Authority is subject to conditions imposed under subsection 9(4)(a) of the Act,
I, Keith Chapman, a delegate of APRA, under paragraph 9(4)(b) of the Act, REVOKE those conditions imposed on the Authority, specified in the attached Schedule.
Dated 19 August 2015
[Signed]
Keith Chapman
Executive General Manager Specialised Institutions Division
Interpretation Document ID: 218754
In this Notice
APRA means the Australian Prudential Regulation Authority.
ADI is short for authorised deposit-taking institution and has the meaning given in subsection 5(1) of the Act.
banking business has the meaning given in subsection 5(1) of the Act.
Note 1
Under subsection 9(4) of the Act, APRA may at any time, by notice in writing served on the ADI,
impose conditions or additional conditions or vary or revoke conditions imposed on its Authority to carry on banking business. The conditions must relate to prudential matters.
Under subsection 9(6) of the Act, an ADI is guilty of an offence if it does or fails to do an act and
Note 2
Under subsection 9(6) of the Act, an ADI is guilty of an offence if it does or fails to do an act and
doing or failing to do that act results in a contravention of a condition of the ADI's Authority, and there is no order in force under section 11 of the Act determining that subsection 9(6) does not apply to the ADI. The penalty is 200 penalty units or, by virtue of subsection 4B(3) of the Crimes Act 1914, in the case of a body corporate, a penalty not exceeding 1,000 penalty units. By virtue of subsection 9(6A) of the Act, an offence against subsection 9(6) is an indictable offence. Under subsection 9(6B) of the Act, if an ADI commits an offence against subsection 9(6), the ADI is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the ADI committing the offence continue (including the day of conviction for any such offence or any later day).
Note 3
Act.
Note 4
The circumstances in which APRA may revoke an ADI's Authority are set out in section 9A of the
Under subsection 9(7) of the Act, APRA must publish a copy of this Notice in the Gazette and may
cause notice of the action taken to revoke the conditions imposed on the authority to be published in any other way it considers appropriate.
Schedule - the conditions which are revoked
Conditions 1, 3, 4 and 5 are revoked.
Overview
The Banking Act 1959 was enacted to provide a framework for the regulation of banking in Australia, addressing the need for a structured and controlled environment to ensure the stability and integrity of the banking sector. The Act was introduced by the Commonwealth Parliament to facilitate the licensing and oversight of authorised deposit-taking institutions (ADIs), such as Tyro Payments Limited, and to protect depositors and the financial system. The policy objective behind the Act is to maintain the prudential standards and ensure the soundness of the banking institutions operating within Australia. In line with these objectives, the Australian Prudential Regulation Authority (APRA) is empowered to impose, vary, or revoke conditions on the banking authority of ADIs to safeguard the financial system and public interest. The revocation of specific conditions on Tyro Payments Limited's banking authority, as detailed in the notice dated 19 August 2015, is an exercise of this power under the Act to adapt regulatory measures as necessary.
Scope and Application
The Banking Act 1959 applies to authorised deposit-taking institutions (ADIs) in Australia, such as Tyro Payments Limited, that hold an authority to carry on banking business. This Act is administered by the Australian Prudential Regulation Authority (APRA), which has the power to impose, vary, or revoke conditions on an ADI's Authority to conduct banking business, provided these conditions relate to prudential matters. The revocation of specific conditions, as demonstrated in this Notice, is an exercise of APRA's authority under the Act. The scope of the Act extends to all ADIs nationwide, ensuring uniform regulation of banking activities across Australia. The Act also stipulates penalties for ADIs that contravene conditions of their Authority, with the severity of the penalty depending on whether the ADI is an individual or a corporate body. Additionally, the Act mandates that APRA publish any revocation of conditions in the Gazette and may choose to disseminate further notice of such actions as it sees fit. This Notice specifically revokes certain conditions on Tyro Payments Limited's Authority, as outlined in the attached Schedule.
Key Provisions
The key provisions of this legislation pertain to the revocation of specific conditions imposed on an authorised deposit-taking institution's (ADI) authority to conduct banking business in Australia. Under section 9 of the Banking Act 1959, the Australian Prudential Regulation Authority (APRA) has the authority to impose, vary, or revoke conditions on the ADI's banking business authority. In this case, Keith Chapman, a delegate of APRA, has exercised this authority by revoking certain conditions (Conditions 1, 3, 4, and 5) specified in the attached schedule.
The obligations imposed by the Act on the ADI primarily revolve around compliance with the conditions set forth by APRA. The ADI must adhere to the terms of its authority, which includes any conditions imposed by APRA. Failure to comply with these conditions can result in severe consequences, as detailed later in this explanation. The ADI is also required to report any breaches of these conditions to APRA promptly. Additionally, APRA must publish a copy of the notice revoking the conditions in the Gazette, as mandated by section 9(7) of the Act, and may also choose to publish the notice in any other manner deemed appropriate.
The Act imposes significant penalties for any breaches. Under subsection 9(6) of the Banking Act 1959, an ADI commits an offence if it fails to comply with a condition of its authority, resulting in a contravention. The penalty for such an offence is set at 200 penalty units, or up to 1,000 penalty units for a body corporate, as per the Crimes Act 1914. Furthermore, the offence is classified as an indictable offence, meaning it can be prosecuted in a higher court. If the ADI continues to breach the conditions, the offence is considered ongoing, and the ADI can be found guilty of the offence for each day the contravention persists. This continuous breach could lead to multiple charges and penalties, highlighting the importance of strict compliance with the authority's conditions.