Notice varying conditions on Authority to carry on banking business - Tyro Payments Limited

Administered by Department of the Treasury

Legislation au C2015G00054 In force Gazette

Legislation content

Notice varying conditions on Authority to carry on banking business

 

Banking Act 1959

 

 

SINCE

 

  1. 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 paragraph 9(4)(a) of the Act,

 

 

I, Brandon Kong Leong Khoo, a delegate of APRA, under paragraph 9(4)(a) of the Act, IMPOSE the conditions specified in the attached Schedule.

 

When this Notice takes effect, the conditions which apply to the Authorisation are set out in the attached Schedule of consolidated conditions.

 

This Notice takes effect on 1 January 2015. Dated: 23 December 2014

[Signed]

 

Brandon Kong Leong Khoo Executive General Manager Specialised Institutions Division

Interpretation Document ID: 215849

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 an ADI,

impose conditions or additional conditions or vary or revoke conditions imposed on its Authority to conduct banking business. The conditions must relate to prudential matters.

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 its 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 of up to 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


Under subsection 9(9) of the Act, decisions to impose conditions, or additional conditions, or to

vary the conditions on the Authorisation are reviewable decisions to which Part VI of the Act applies. If a person whose interests are affected is dissatisfied with that decision, the person may seek reconsideration of the decision by APRA in accordance with section 51B(1) of the Act. The request for reconsideration must be in writing, must state the reasons for the request, and must be given to APRA within 21 days after the decision first comes to the person’s notice or within such further period as APRA allows. If dissatisfied with APRA’s reconsidered decision confirming or varying the first decision, the person may, subject to the Administrative Appeals Act 1975, apply to the Administrative Appeals Tribunal for review of the reconsidered decision.

The address where written notice may be given to APRA is  Level 26 400 George St Sydney NSW 2000.

Note 4

Act.

Note 5


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 vary the conditions imposed on the Authority to be published in any other way it considers appropriate.

Schedule - the conditions which are being imposed

5. On or before 31 December 2015, the Company will have satisfied APRA that Condition 1 ought to be revoked.

Schedule of consolidated conditions

  1.          The banking business that the Company is authorised to carry on is confined to the activities of credit card acquiring in any credit card scheme that was designated as a payment system under section 11 of the Payment Systems (Regulation) Act 1998 on 11 April 2001. For the avoidance of doubt:

(a)           the Company may acquire debit card transactions;

(b)           the Company may provide BPAY and direct debit services in conjunction with its credit card and debit card acquiring services; and

(c)           the Company must not take money on deposit;

 

2.            [This condition has been revoked and is included for numbering purposes only];

 

3.            Merchant performance bonds, if any, accepted by the Company in the course of its credit card acquiring activities must be held by the Company for the benefit of the merchants in a trust account with an authorised deposit taking institution;

 

4.            Funds awaiting settlement to merchants may but need not be kept in a trust account with an authorised deposit taking institution.

 

5.            On or before 31 December 2015, the Company will have satisfied APRA that Condition 1 ought to be revoked.

 

Interpretation

 

In this Schedule

 

Company means the ADI.

Overview

The Banking Act 1959 was enacted to regulate and oversee the banking industry in Australia, ensuring that financial institutions adhere to prudential standards and operate in a safe and sound manner. The Act provides the framework for the Australian Prudential Regulation Authority (APRA) to impose, vary, or revoke conditions on the authority of authorised deposit-taking institutions (ADIs) to conduct banking business. The problem or gap the Act aimed to address was the need for a regulatory framework to manage the operations of banking institutions, maintain financial stability, and protect consumers. Enacted by the Australian Parliament, the Act’s policy objective is to safeguard the stability and integrity of the banking sector through effective prudential regulation. This Notice, issued by a delegate of APRA, varies the conditions on the Authority of Tyro Payments Limited to carry on banking business, reflecting ongoing regulatory oversight and the need to adapt to changing industry practices and risks.

Scope and Application

The Banking Act 1959 governs the operation of authorised deposit-taking institutions (ADIs) in Australia, including the regulation of their activities by the Australian Prudential Regulation Authority (APRA). This Act applies to ADIs, which are entities authorised to carry on banking business in Australia. The Act's jurisdiction extends across the Commonwealth, ensuring uniform regulation of banking activities nationwide. APRA, as a delegate of the Commonwealth, has the authority to impose, vary, or revoke conditions on the banking authorisation of ADIs, particularly concerning prudential matters. The Notice dated 23 December 2014, imposing conditions on Tyro Payments Limited’s banking authorisation, exemplifies this regulatory power. The conditions, which are detailed in the attached Schedule, are designed to govern the scope of Tyro Payments Limited’s banking activities, particularly restricting it to credit card acquiring activities and related services, while prohibiting the acceptance of deposits. These conditions become effective from 1 January 2015 and are subject to review and reconsideration processes as outlined in the Act. APRA must publish such notices in the Gazette, ensuring transparency and public awareness of the regulatory actions taken.

Key Provisions

The Banking Act 1959, as amended, grants the Australian Prudential Regulation Authority (APRA) the authority to impose conditions on the authorisation of authorised deposit-taking institutions (ADI) to carry on banking business in Australia. In this context, the Act defines banking business as any activity conducted by an ADI, which typically includes taking deposits and providing credit. Pursuant to section 9(4)(a) of the Act, APRA, through its delegate, has imposed specific conditions on Tyro Payments Limited’s Authority to conduct banking business, which are detailed in the attached Schedule. These conditions are intended to ensure that the ADI operates in a prudential manner and in compliance with relevant regulatory standards. The obligations imposed on Tyro Payments Limited include strict adherence to the conditions outlined in the Schedule. Specifically, Tyro Payments Limited is confined to credit card acquiring activities under designated payment systems and can also acquire debit card transactions, provide BPAY and direct debit services, but must not take money on deposit. Furthermore, any merchant performance bonds accepted by Tyro Payments Limited must be held in a trust account with an authorised deposit-taking institution for the benefit of the merchants. Although funds awaiting settlement to merchants may be kept in a trust account, it is not mandatory. Tyro Payments Limited is also required to ensure that by 31 December 2015, it satisfies APRA that certain conditions can be revoked. Failure to comply with the conditions imposed on Tyro Payments Limited’s banking business authorisation can result in significant legal consequences. Under section 9(6) of the Act, an ADI is guilty of an offence if it contravenes any condition of its authorisation, which may result in a penalty of up to 200 penalty units, or up to 1,000 penalty units for a body corporate, as stipulated in the Crimes Act 1914. This offence is indictable, meaning it can be prosecuted in a higher court, and the ADI can be found guilty for each day the contravention continues. Additionally, section 9(9) of the Act provides for the review of APRA’s decisions to impose or vary conditions, allowing affected parties to seek reconsideration or appeal to the Administrative Appeals Tribunal if dissatisfied with APRA’s decision.

Legal classification tags

Area of Law
Finance & Banking Law
Instrument
Statutory Instrument
Concepts
Definitions & Interpretation
Regulatory Standards
Enforcement Powers

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.