Revocation of authority to carry on banking business - Xinja Bank Limited

Revocation of authority to carry on banking business

Banking Act 1959                                        

To: Xinja Bank Limited ABN 99 618 937 054 (the body corporate) SINCE:

1. the body corporate, by notice in writing to APRA, has requested the revocation of its section 9 authority to carry on banking business in Australia (the authority); and

B.            I am satisfied that the revocation of the authority would not be contrary to the national interest or the interests of depositors of the body corporate,

I, Therese McCarthy Hockey, a delegate of APRA, under subsection 9A(1) of the Banking Act 1959 (the Act), REVOKE the authority.

Under subsection 9A(5A) of the Act, the authority continues in effect in relation to the matters and periods specified in the schedule, as though the revocation had not happened, for the purposes of the provisions of the Act as specified in the schedule.

This instrument commences on the day it is made. Dated: 26 February 2021

[Signed]

Therese McCarthy Hockey 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.

Regulations means Banking Regulation 2016.

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 – continuation of authority

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:

1. section 37FC(d) ‘Events for which APRA must be notified’;
2. section 37G ‘Pecuniary penalty for non-compliance with this Part’;
3. section 37J ‘APRA may disqualify an accountable person’; and
4. 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:

1. Part VIII ‘Powers of APRA’; and
2. section 62E ‘APRA may request information from liquidator’;

Directions

4.      for the period from the date of this instrument to when the operational accounts are transferred in their entirety to NAB:

1. section 11CA ‘APRA may give directions in certain circumstances’;
2. section 11CD ‘Direction not grounds for denial of obligations’;
3. section 11CE ‘Supply of information about issue and revocation of directions’; and
4. 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 when the operational accounts are transferred in their entirety to NAB, 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 the operational accounts, 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 period ending when the operational accounts are transferred in their entirety to NAB, 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’; and

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.

NAB means National Australia Bank Limited ABN 12 004 044 937.

operational accounts means the accounts with the body corporate identified in the request as a Fraud Operation Account, a Mastercard Suspense Account and a DE Transaction Operations Account.

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.

request means the body corporate’s request to APRA for the revocation of its section 9 authority to carry on banking business in Australia dated 22 February 2021.

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).

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