Revocation of authority to carry on banking business 2023 – Volt Limited

Administered by Department of the Treasury

Legislation au C2023G01025 In force Gazette

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Revocation of authority to carry on banking business 2023 – Volt Limited

Banking Act 1959

 

To: Volt Limited ABN 67 6223 757 22 (the body corporate) SINCE:

  1. on 26 August 2022, APRA revoked the body corporate’s section 9 authority to carry on banking business in Australia under subsection 9A(1) of the Banking Act 1959 (the Act) (the revocation instrument); and

 

B.            the revocation instrument stated that, under subsection 9A(5A) of the Act, the

section 9 authority continues in effect in relation to the matters and periods specified in that instrument, as though the revocation had not happened, for the purposes of the provisions of the Act as specified in that instrument (the existing provisions),

 

I, Renée Roberts, a delegate of APRA, under subsection 9A(5A) of the Act and subsection 33(3) of the Acts Interpretation Act 1901, VARY the provisions which continue under the revocation instrument by replacing the existing provisions with the provisions specified in the Schedule (the varied provisions).

 

This instrument commences on the day it is made. Dated: 30 August 2023

 

Renée Roberts Executive Director Banking Division

 

Interpretation

In this instrument:

APRA means the Australian Prudential Regulation Authority.

banking business has the meaning given in subsection 5(1) of the Act.

section 9 authority has the meaning given in subsection 5(1) of the Act.

 

Notes

APRA is required to publish notice of the revocation in the Gazette, and may also publish notice of the revocation in other ways.

Schedule – existing provisions

The authority continues in effect in relation to the following matters and periods, as though the revocation had not happened, for the purposes of the following provisions of the Banking Act 1959 (the Act):

 

B.E.A.R.

 

  1. in relation to any breach, or possible breach, of a provision contained in Part IIAA of the Act which has occurred (or may have occurred) prior to the date of this instrument:

 

(a)          section 37FC(d) ‘Events for which APRA must be notified’;

(b)          section 37G ‘Pecuniary penalty for non-compliance with this Part’;

(c)           section 37J ‘APRA may disqualify an accountable person’; and

(d)          section 37JA ‘APRA may vary or revoke a disqualification’;

2.             in relation to variable remuneration which relates to the period prior to the date of this instrument, for the period of 4 years after the date of this instrument, Division 4 of Part IIAA ‘Deferred remuneration obligations’;

 

Investigations

 

3.             in relation to all matters occurring prior to the date of this instrument:

 

(a)          Part VIII ‘Powers of APRA’; and

(b)          section 62E ‘APRA may request information from liquidator’;

Directions

 

4.             for the period from the date of this instrument to the chargeback/reversal sunset date:

 

(a)          section 11CA ‘APRA may give directions in certain circumstances’;

(b)          section 11CD ‘Direction not grounds for denial of obligations’;

(c)           section 11CE ‘Supply of information about issue and revocation of directions’; and

(d)          section 11CG ‘Non-compliance with a direction’;

Auditors

 

5.             in relation to any breach or possible breach of the Act, the Regulations, the applicable prudential standards, or any other law of the Commonwealth or a State or a Territory which has occurred or may have occurred prior to the date of this instrument, section 18 ‘Referring matters to professional associations for auditors’;

 

Proposed appointment of external administrator

 

6.             for the period from the date of this instrument to the chargeback/reversal sunset date, section 62B ‘Involving APRA in proposed appointment of external administrators of ADIs and NOHCs’; and

Ancillary provisions

 

7.             in relation to any function or power under the Act which APRA had in relation to the body corporate, its responsible persons, and/or accountable persons prior to the date of this instrument and in relation to any function or power that APRA has retained under this instrument as specified in this Schedule, section 18A ‘Enforceable undertakings’;

 

8.             in relation to any potential transferrable deposit amounts, section 62D ‘Application by APRA for directions’;

 

9.             in relation to any conduct engaged in by the body corporate, its responsible persons and/or accountable persons prior to the chargeback/reversal sunset date, section 65A ‘Injunctions’;

 

10.         in relation to any function or power under the Act which APRA had in relation to the body corporate and/or its responsible and accountable persons prior to the date of this instrument and in relation to any function or power that APRA has retained under this instrument as specified in this Schedule, section 65B ‘Civil penalties’;

 

11.         in relation to any direction made by APRA under section 11CA, section 70AA ‘Protection from liability – directions and secrecy’;

 

12.         in relation to all matters for which APRA has retained its functions and powers under this instrument as specified in this Schedule, section 70B ‘Act has effect despite the Corporations Act’; and

 

13.         in relation to all protected documents and protected information existing at the date of this instrument, section 56 of the Australian Prudential Regulation Authority Act 1998.

 

Interpretation

In this schedule:

accountable person has the meaning given by sections 37BA and 37BB of the Act.

approved transfer means the partial voluntary transfer of business from the body corporate to NAB under the Financial Sector (Transfer and Restructure) Act 1999 approved by APRA on 20 July 2022.

chargeback/reversal means any debit Mastercard transaction made in error or where goods and services are not received by a transferring customer prior to or within 30 days of 21 July 2022, or where the transaction is an unauthorised transaction, that are to be charged as a disputed or unauthorised transaction to the relevant merchant or ATM provider, but which do not compromise any fees or other transactional charges.

chargeback/reversal sunset date means 2 July 2024.

NAB means National Australia Bank Limited ABN 12 004 044 937. prudential matter has the meaning given by section 5(1) of the Act. prudential standard has the meaning given by section 5(1) of the Act.

responsible person has the meaning given by the Banking, Insurance, Life Insurance and Health Insurance (prudential standard) determination No. 2 of 2018 (Prudential Standard CPS 520 Fit and Proper).

transferrable deposit amount means any amount forming part of a debt of the body

corporate to a transferring customer (including, without limitation, in respect of any chargeback/reversal) transferrable to NAB in accordance with the approved transfer.

transferring customer means a customer of the body corporate the subject of the approved transfer.

variable remuneration has the meaning given by section 37EA of the Act.

Schedule – varied provisions

The authority continues in effect in relation to the following matters and periods, as though the revocation had not happened, for the purposes of the following provisions of the Banking Act 1959 (the Act):

 

B.E.A.R.

 

14.         in relation to any breach, or possible breach, of a provision contained in Part IIAA of the Act which has occurred (or may have occurred) prior to the date of this instrument:

 

(e)          section 37FC(d) ‘Events for which APRA must be notified’;

(f)            section 37G ‘Pecuniary penalty for non-compliance with this Part’;

(g)          section 37J ‘APRA may disqualify an accountable person’; and

(h)          section 37JA ‘APRA may vary or revoke a disqualification’;

15.         in relation to variable remuneration which relates to the period prior to the date of this instrument, for the period of 4 years after the date of this instrument, Division 4 of Part IIAA ‘Deferred remuneration obligations’;

 

Investigations

 

16.         in relation to all matters occurring prior to the date of this instrument:

 

(c)           Part VIII ‘Powers of APRA’; and

(d)          section 62E ‘APRA may request information from liquidator’;

Directions

 

17.         for the period from the date of this instrument to the chargeback/reversal sunset date:

 

(e)          section 11CA ‘APRA may give directions in certain circumstances’;

(f)            section 11CD ‘Direction not grounds for denial of obligations’;

(g)          section 11CE ‘Supply of information about issue and revocation of directions’; and

(h)          section 11CG ‘Non-compliance with a direction’;

Auditors

 

18.         in relation to any breach or possible breach of the Act, the Regulations, the applicable prudential standards, or any other law of the Commonwealth or a State or a Territory which has occurred or may have occurred prior to the date of this instrument, section 18 ‘Referring matters to professional associations for auditors’;

 

Proposed appointment of external administrator

 

19.         for the period from the date of this instrument to the chargeback/reversal sunset date, section 62B ‘Involving APRA in proposed appointment of external administrators of ADIs and NOHCs’; and

Ancillary provisions

 

20.         in relation to any function or power under the Act which APRA had in relation to the body corporate, its responsible persons, and/or accountable persons prior to the date of this instrument and in relation to any function or power that APRA has retained under this instrument as specified in this Schedule, section 18A ‘Enforceable undertakings’;

 

21.         in relation to any potential transferrable deposit amounts, section 62D ‘Application by APRA for directions’;

 

22.         in relation to any conduct engaged in by the body corporate, its responsible persons and/or accountable persons prior to the chargeback/reversal sunset date, section 65A ‘Injunctions’;

 

23.         in relation to any function or power under the Act which APRA had in relation to the body corporate and/or its responsible and accountable persons prior to the date of this instrument and in relation to any function or power that APRA has retained under this instrument as specified in this Schedule, section 65B ‘Civil penalties’;

 

24.         in relation to any direction made by APRA under section 11CA, section 70AA ‘Protection from liability – directions and secrecy’;

 

25.         in relation to all matters for which APRA has retained its functions and powers under this instrument as specified in this Schedule, section 70B ‘Act has effect despite the Corporations Act’; and

 

26.         in relation to all protected documents and protected information existing at the date of this instrument, section 56 of the Australian Prudential Regulation Authority Act 1998.

 

Interpretation

In this schedule:

accountable person has the meaning given by sections 37BA and 37BB of the Act.

approved transfer means the partial voluntary transfer of business from the body corporate to NAB under the Financial Sector (Transfer and Restructure) Act 1999 approved by APRA on 20 July 2022.

chargeback/reversal means any debit Mastercard transaction made in error or where goods and services are not received by a transferring customer prior to or within 30 days of 21 July 2022, or where the transaction is an unauthorised transaction, that are to be charged as a disputed or unauthorised transaction to the relevant merchant or ATM provider, but which do not compromise any fees or other transactional charges.

chargeback/reversal sunset date means 31 August 2023.

NAB means National Australia Bank Limited ABN 12 004 044 937. prudential matter has the meaning given by section 5(1) of the Act. prudential standard has the meaning given by section 5(1) of the Act.

responsible person has the meaning given by the Banking, Insurance, Life Insurance and Health Insurance (prudential standard) determination No. 2 of 2018 (Prudential Standard CPS 520 Fit and Proper).

transferrable deposit amount means any amount forming part of a debt of the body

corporate to a transferring customer (including, without limitation, in respect of any chargeback/reversal) transferrable to NAB in accordance with the approved transfer.

transferring customer means a customer of the body corporate the subject of the approved transfer.

variable remuneration has the meaning given by section 37EA of the Act.

Overview

The Banking Act 1959 was enacted to regulate the activities of authorised deposit-taking institutions and other financial entities in Australia, ensuring the stability and integrity of the financial system. The Act was introduced to address the need for a comprehensive framework governing the operations of banks and other financial institutions, safeguarding the interests of depositors, maintaining financial stability, and ensuring compliance with prudential standards. This Act was passed by the Australian Parliament with the objective of providing a robust regulatory environment for the banking sector. The Revocation of Authority to Carry on Banking Business 2023 is a legislative instrument made under the authority of the Australian Prudential Regulation Authority (APRA) and the Acts Interpretation Act 1901. This instrument addresses the revocation of Volt Limited's authority to carry on banking business in Australia, while ensuring that certain functions and powers retained by APRA continue to apply to specific matters and periods. The policy objective is to manage the transition following the revocation effectively while preserving regulatory oversight and protecting stakeholders' interests.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2023, issued under the Banking Act 1959, applies to Volt Limited, an Australian-based banking corporation whose section 9 authority to conduct banking business was revoked by the Australian Prudential Regulation Authority (APRA) on 26 August 2022. This instrument modifies the existing provisions concerning the continued authority of APRA in relation to certain banking activities of Volt Limited, ensuring that APRA retains oversight over specific areas despite the revocation of the banking authority. The instrument specifies the provisions that continue to apply to breaches of regulations, investigations, directions, auditor referrals, and other relevant areas, with a focus on activities and events occurring before or up until specified dates. The geographic scope of this Act is national, applying across Australia, as it involves a federally regulated financial institution. There are no stated exclusions, exemptions, or thresholds in the Act itself, though the detailed provisions in the Schedule outline specific areas of retained authority. The application of the Act may be extended or restricted through subordinate instruments issued by APRA under the authority of the Banking Act 1959 and the Acts Interpretation Act 1901.

Key Provisions

The operative sections of the Revocation of Authority to Carry on Banking Business 2023 (Volt Limited) (C2023G01025) detail the continued applicability of certain provisions of the Banking Act 1959 (the Act) to Volt Limited ABN 67 6223 757 22, despite the revocation of its section 9 authority to conduct banking business. These sections outline specific areas where the authority continues to apply, including breaches of Part IIAA (sections 37FC(d), 37G, 37J, and 37JA), variable remuneration obligations (Division 4 of Part IIAA), powers of the Australian Prudential Regulation Authority (APRA) (Part VIII and section 62E), APRA's ability to give directions (sections 11CA, 11CD, 11CE, and 11CG), auditors' responsibilities (section 18), and other ancillary provisions (sections 62B, 62D, 65A, 65B, 70AA, 70B, and section 56 of the Australian Prudential Regulation Authority Act 1998). The Act imposes several obligations on Volt Limited and related parties. These include reporting any breaches or potential breaches of Part IIAA to APRA, complying with the deferred remuneration obligations for a period of four years, allowing APRA to exercise its powers of investigation and information request, adhering to any directions issued by APRA, and ensuring that auditors refer matters to professional associations. Additionally, Volt Limited must cooperate with APRA in the event of a proposed appointment of an external administrator and ensure compliance with civil penalties and injunctions as applicable. The Revocation of Authority to Carry on Banking Business 2023 (Volt Limited) stipulates specific offences, penalties, and consequences for breaches of the Act. For instance, failure to comply with APRA's directions (section 11CG) or non-compliance with a direction (section 11CG) can lead to significant penalties. The Act also empowers APRA to disqualify accountable persons (section 37J) and impose pecuniary penalties for non-compliance (section 37G). Additionally, APRA can seek injunctions (section 65A) and impose civil penalties (section 65B) for breaches. The maximum penalties for such offences can be substantial, depending on the severity and nature of the breach. It is crucial for Volt Limited and its responsible and accountable persons to fully comply with these provisions to avoid legal repercussions.

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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.