Overview

The "Revocation of authority to carry on banking business 2026 – Family First Credit Union Limited" instrument was enacted in 2026 to revoke the section 9 authority of Family First Credit Union Limited under the Banking Act 1959. This instrument was introduced in response to the credit union's formal request to cease its banking operations in Australia. The Australian Prudential Regulation Authority (APRA), the body responsible for overseeing financial institutions, reviewed the request and determined that revoking the authority would not be detrimental to the national interest or the interests of depositors. As a result, Peter Diamond, a delegate of APRA, revoked the relevant authority, and the instrument took effect immediately upon its creation. The Banking Act 1959, enacted by the Australian Parliament, governs the regulation of banking in the country. The Act provides APRA with the power to regulate and supervise financial institutions, including the authority to revoke a bank's section 9 authority if necessary. The policy objective of this revocation is to ensure the stability and integrity of the Australian financial system, as well as to protect the interests of depositors and maintain public confidence in the banking sector. The revocation of Family First Credit Union Limited's section 9 authority aligns with these objectives and reflects the decision made by APRA in accordance with the Act.

Scope and Application

The Revocation of authority to carry on banking business 2026 pertains to the Family First Credit Union Limited, a body corporate identified by its Australian Business Number (ABN) 39 087 650 057. This revocation is executed under the authority granted by the Banking Act 1959, specifically subsection 9A(1), which allows a delegate of the Australian Prudential Regulation Authority (APRA) to revoke a section 9 authority. This authority pertains to the Family First Credit Union Limited's right to conduct banking business within Australia. The revocation is effective from the date of the instrument, 28 April 2026, and is executed by Peter Diamond, an Executive Director within APRA's General Insurance and Banking Division, who is satisfied that such revocation would not be detrimental to the national interest or the interests of depositors. The Act mandates that APRA must publish the revocation notice in the Gazette and may also use other means to inform the public. The instrument does not specify any exclusions, exemptions, or thresholds, and any further application details would be addressed through subordinate instruments if necessary.

Key Provisions

The Revocation of Authority to Carry on Banking Business 2026, issued under the Banking Act 1959, specifically revokes Family First Credit Union Limited's authority to conduct banking business in Australia. This revocation, as outlined in the document, is a direct response to a formal request made by the credit union to the Australian Prudential Regulation Authority (APRA). The operative section of this instrument, which is section 9, mandates that APRA can only proceed with the revocation if it is satisfied that such action would not adversely affect the national interest or the interests of the credit union's depositors (subsection 9A(1)). The legislation imposes several obligations on Family First Credit Union Limited and APRA. For the credit union, the primary obligation is to formally request the revocation of its banking authority in writing to APRA. APRA, on the other hand, is required to consider the implications of the revocation, ensuring it does not conflict with national interests or harm depositors. Additionally, APRA must publish notice of the revocation in the Gazette and may choose to disseminate the information through other means as well. In terms of legal consequences, the Act does not explicitly outline offences or penalties for the revocation of the authority itself. However, any associated breaches or misconduct leading to the revocation could result in separate penalties under the Banking Act 1959 or other relevant legislation. For instance, if the revocation was a result of non-compliance with banking regulations, the credit union might face fines or other enforcement actions as stipulated by the Act. It is important to note that while the revocation document does not specify maximum penalties, breaches of banking laws can attract significant financial penalties and, in severe cases, criminal charges.