Revocation of authority to carry on banking business 2023 – A.C.N. 087 652 024 Limited (previously known as Heritage Bank Limited)

Overview

The Revocation of Authority to Carry on Banking Business 2023 (C2023G00341) was enacted to address the specific request made by A.C.N. 087 652 024 Limited (previously known as Heritage Bank Limited) to revoke its section 9 authority to conduct banking business in Australia. This revocation was carried out under the authority of the Banking Act 1959, with the enactment occurring through the Australian Prudential Regulation Authority (APRA), the body responsible for regulating and supervising Australia's deposit-taking institutions. The policy objective of the revocation, as stated in the instrument, is to ensure that the action does not conflict with the national interest or the interests of the depositors. This legislative instrument, which was issued by Renée Roberts, an Executive Director of the Banking Division at APRA, came into effect on the day of its making, 21 March 2023. Following the revocation, APRA is obligated to publish notice of the revocation in the Gazette and may additionally disseminate this information through other channels as deemed appropriate.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2023 under the Banking Act 1959 applies to A.C.N. 087 652 024 Limited, previously known as Heritage Bank Limited, a body corporate with Australian Business Number 32 087 652 024. The revocation pertains to the entity's section 9 authority to conduct banking business in Australia. The authority is revoked upon the body corporate's written request to the Australian Prudential Regulation Authority (APRA) and following a determination by Renée Roberts, a delegate of APRA, that such revocation would not be contrary to the national interest or the interests of the depositors. This revocation is effective from the date the instrument is made. APRA is mandated to publish notice of this revocation in the Gazette and may choose to disseminate it through other means as well. The application of this instrument is confined to the specific entity named and does not extend to any other financial institutions or entities unless explicitly stated in subordinate instruments or regulations.

Key Provisions

The primary provision of this instrument, section 9A(1) of the Banking Act 1959, allows for the revocation of the authority to carry on banking business in Australia held by A.C.N. 087 652 024 Limited (previously known as Heritage Bank Limited). This revocation takes effect upon the issuing of the written notice by the body corporate to APRA, and subsequent approval by a delegate of APRA, Renée Roberts, who is satisfied that the revocation would not be contrary to the national interest or the interests of depositors of the body corporate (section 9A(1)). This formal revocation process is intended to provide a clear and structured approach to terminating a bank's operational licence. The obligations and requirements imposed on the body corporate and APRA by this instrument are primarily procedural. The body corporate must submit a written request to APRA, clearly stating its intention to revoke the section 9 authority. APRA, in turn, must review the request and satisfy itself that the revocation does not conflict with national interests or depositors’ interests. Upon making this determination, APRA, through a delegate such as Renée Roberts, must formally revoke the authority by issuing a written notice. APRA is also required to publish notice of the revocation in the Gazette, and may additionally choose to disseminate the notice through other means to ensure broad awareness and compliance with the change (subsection 9A(1)). Under the Banking Act 1959, breaches of the requirements set out in this instrument could lead to civil or criminal penalties, although specific penalties are not detailed in this instrument. The Act generally provides for a range of potential sanctions for non-compliance, including fines and imprisonment, depending on the nature and severity of the breach. For instance, under the general provisions of the Banking Act, a body corporate or its officers could face fines of up to $210,000 for each offence if found guilty of misleading or deceptive conduct or failing to comply with the Act. These penalties underscore the importance of adhering to the statutory requirements for the revocation of banking authority.