Overview

The Revocation of Authority to Carry on Banking Business 2026 is an instrument issued under the Banking Act 1959 by Jane Magill, a delegate of the Australian Prudential Regulation Authority (APRA). This legislative instrument revokes the authority of The Bank of Nova Scotia, ABN 34 133 513 827, to carry on banking business in Australia, effective from 28 February 2026. This revocation follows a written request by the bank to APRA, and the decision has been made on the basis that such action would not be contrary to the national interest or the interests of the bank's depositors. The primary objective of this revocation is to ensure that the withdrawal of banking authority is conducted in a manner that protects the interests of all stakeholders involved. The enactment of this instrument is in line with the provisions of the Banking Act 1959, which allows APRA to revoke a bank's authority to carry on banking business in Australia if certain conditions are met. This process ensures that the revocation of banking authority is subject to regulatory oversight and is carried out in a manner that maintains the stability and integrity of the financial system. APRA is required to publish notice of the revocation in the Gazette and may also choose to publish it in other ways to ensure transparency and public awareness of the change in the bank's status.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2026 pertains to the Bank of Nova Scotia, a body corporate identified by its Australian Business Number (ABN) 34 13 351 3827. This Act applies specifically to the revocation of the entity's section 9 authority to conduct banking business in Australia, as requested by the Bank of Nova Scotia through a written notice to the Australian Prudential Regulation Authority (APRA). The authority granted under the Banking Act 1959 allows the institution to engage in banking activities within Australia. The revocation is predicated on a determination by Jane Magill, a delegate of APRA, that the revocation is not contrary to the national interest or the interests of the bank's depositors. This instrument takes effect from 28 February 2026, as confirmed by Jane Magill, who holds the position of Executive Director in the General Insurance and Banking Division of APRA. The Act is subject to the definitions provided in the Banking Act 1959, with specific terms such as "banking business" and "section 9 authority" having their meanings as per subsection 5(1) of the Act. APRA is obligated to publish notice of this revocation in the Gazette and may also choose to disseminate this information through other means.

Key Provisions

The primary operative sections of the Revocation of Authority to Carry on Banking Business 2026 (Gazette) instrument involve the revocation of the Bank of Nova Scotia's section 9 authority to conduct banking business in Australia, as per section 9A(1) of the Banking Act 1959. The document, issued by Jane Magill, a delegate of the Australian Prudential Regulation Authority (APRA), declares that the authority has been revoked because the Bank of Nova Scotia, by written notice to APRA, has requested the revocation. The instrument specifies that this revocation would not be contrary to the national interest or the interests of the bank's depositors. Under this instrument, the Bank of Nova Scotia is relieved of its banking authority in Australia, effective from 28 February 2026. The obligations imposed on the Bank of Nova Scotia by this revocation include the cessation of all banking activities in Australia as permitted under section 9 of the Banking Act 1959. The bank must ensure compliance with all statutory requirements pertaining to the orderly winding down of its Australian operations. APRA will oversee this process to ensure it is conducted in a manner that protects the interests of depositors and maintains financial stability. In terms of legal consequences, there are no explicit offences or penalties stated within this revocation instrument itself. However, any failure by the Bank of Nova Scotia to comply with the conditions of the revocation or to conduct its winding down in accordance with the Banking Act 1959 could lead to enforcement actions by APRA. Such actions might include administrative penalties or legal proceedings to recover losses incurred by depositors. The Banking Act 1959 provides for various penalties, which can include substantial fines and, in severe cases, imprisonment for individuals found to be in breach of the Act's provisions. These penalties underscore the importance of the bank's adherence to the requirements set forth by APRA during the revocation process.