Overview

The Revocation of authority to carry on banking business 2025 – Illawarra Credit Union Limited, enacted in 2025, addresses the revocation of a specific section 9 authority granted under the Banking Act 1959 to Illawarra Credit Union Limited, an entity registered under the Australian Business Number 14 087 650 771. This revocation was initiated following a written request from the credit union to the Australian Prudential Regulation Authority (APRA). Jane Magill, acting as a delegate of APRA, has determined that the revocation of the banking authority does not conflict with the national interest or the interests of the credit union's depositors. The revocation took effect from 8 April 2025, as officially announced by Jane Magill, the Executive Director General Insurance and Banking Division, in accordance with the provisions of the Banking Act 1959. This legislative instrument highlights the procedure for revoking banking authorisations, ensuring that such actions are conducted with due consideration of the national interest and the protection of depositors. APRA is mandated to publicise the revocation through the Gazette and may additionally disseminate the notice via other channels to ensure transparency and public awareness.

Scope and Application

The Revocation of authority to carry on banking business 2025 – Illawarra Credit Union Limited, issued under the Banking Act 1959, applies to Illawarra Credit Union Limited, a body corporate with an Australian Business Number (ABN) of 14 087 650 771. This legislative instrument concerns the revocation of the institution's section 9 authority to conduct banking business within Australia, following a formal request by the entity to the Australian Prudential Regulation Authority (APRA). The revocation is contingent upon the determination by a delegate of APRA, in this case, Jane Magill, that such action would not be detrimental to the national interest or the interests of the credit union's depositors. The authority to revoke is derived from subsection 9A(1) of the Act, and the instrument comes into effect on 8 April 2025. As per the Act's requirements, APRA is mandated to publicise the revocation in the Gazette and may also choose to disseminate the notice through other appropriate channels. This instrument does not specify any exclusions, exemptions, or thresholds, nor does it extend or restrict its application through subordinate instruments.

Key Provisions

The main operative sections of the "Revocation of authority to carry on banking business 2025 – Illawarra Credit Union Limited" instrument are found under the Banking Act 1959 (the Act). The instrument, signed by Jane Magill, an executive delegate of the Australian Prudential Regulation Authority (APRA), revokes the section 9 authority of Illawarra Credit Union Limited (the body corporate) to carry on banking business in Australia. This revocation is effective as of 8 April 2025. Section 9 authority, as defined in subsection 5(1) of the Act, refers to the specific authorisation granted to the body corporate to operate as a bank. The revocation is made following a written request by the body corporate to APRA and Jane Magill's satisfaction that such revocation does not conflict with the national interest or the interests of the body corporate's depositors. The obligations imposed by the Act on the parties and entities it governs include the requirement for any body corporate seeking to revoke its banking authority to submit a formal written request to APRA. Furthermore, APRA is mandated to ensure that the revocation does not adversely affect the national interest or the interests of depositors. The instrument also stipulates that APRA must publish a notice of the revocation in the Gazette, and may also choose to disseminate this notice through other means. The body corporate, in this case, Illawarra Credit Union Limited, is also subject to the terms and conditions of the revocation as laid out in the instrument. In terms of potential offences, penalties, or consequences for breach, the instrument itself does not specify particular offences or penalties. However, the Banking Act 1959, under which this instrument operates, does provide for a range of potential penalties for breaches of banking laws. These could include fines, imprisonment, or other civil and criminal sanctions, depending on the nature and severity of the breach. The specific penalties would be determined according to the relevant provisions of the Banking Act 1959, which could encompass substantial financial penalties and potential imprisonment for serious violations. It is important to note that the exact penalties would be subject to the particular circumstances of the case and the discretion of the court.