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Revocation of existing approval and granting of new approval to hold a stake in a financial sector company of more than 20% No. 10 of 2022

Revocation of existing approval and granting of new approval to hold a stake in a financial sector company of more than 20% No. 10 of 2022

Administered by Department of the Treasury

Legislation au F2022N00125 In force Notifiable Instrument

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Financial Sector (Shareholdings) Act 1998

To: The Existing Approval Holders named in Schedule 1 and the the Applicants named in Schedule 2

SINCE

On 11 March 2013, the Existing Approval Holders were granted approval under subsection 14(1) of the Financial Sector (Shareholdings) Act 1998 (the Act) to hold a 100% stake in The Hollard Insurance Company Pty Ltd ABN 78 090 584 473 (Hollard Insurance) and the then holding companies of Hollard Insurance, Hollard Holdings Australia Pty Ltd ABN 30 154 586 802, Hollard Investments B.V. and Hollard Investments Coӧperatief U.A. (the Existing Approval);

B. the Applicants have applied for an approval under section 13 of the Act, to hold a stake of 100% in Hollard Insurance and each of the companies listed in the attached Schedule 3, each financial sector companies under the Act (the companies);

C. the Applicants have also applied for an approval under section 13 of the Act, to hold a stake of 100% in Commonwealth Insurance Limited ABN 96 067 524 216 (Commonwealth Insurance), a financial sector company under the Act;

D. the Existing Approval Holders have requested that the Existing Approval be revoked;

E. I am satisfied that it is in the national interest for each Applicant to hold a stake in Hollard Insurance and the companies of more than 20%; and

F. I am satisfied that it is in the national interest for each Applicant to hold a stake in Commonwealth Insurance of more than 20%.

I, Sharyn Reichstein, a delegate of the Treasurer:

(a) under subsection 18(3) of the Act, REVOKE the Existing Approval; and

(b) under subsection 14(1) of the Act, APPROVE each of the Applicants to hold a 100% stake in Hollard Insurance and the companies; and

This instrument commences on the day it is made and remains in force indefinitely. Dated: 1/06/2022

Sharyn Reichstein General Manager Insurance Division

Interpretation

In this instrument:

APRA means the Australian Prudential Regulation Authority.

financial sector company has the meaning given in section 3 of the Act.

stake in relation to a company, has the meaning given in clause 10 of Schedule 1 to the Act.

Notes

Note 1. This instrument will be registered on the Federal Register of Legislation as a notifiable instrument.

Note 2. The Treasurer or the Treasurer’s delegate is required to give a copy of this instrument to the financial sector company.

Note 3. Section 19 of the Act provides for flow-on approvals for an approval under paragraph 14(1)(a) of the Act. If the approval relates to a financial sector company that is a holding company of an authorised deposit-taking institution or authorised insurance company, subsection 19(1) provides for flow-on approvals that relate to each financial sector company that is a 100% subsidiary of the holding company. If the approval is held by a company, subsection 19(3) provides for flow-on approvals to be held by each officer of the company.

Schedule 1 - the Existing Approval Holders

IVM Intersurer B.V.

2. Richard Enthoven as Trustee of the Arcadia Trust (formerly the Enthoven Family Trust).

3. Adrian Enthoven as Trustee of the Arcadia Trust (formerly the Enthoven Family Trust).

4. Robert Enthoven as Trustee of the Arcadia Trust (formerly the Enthoven Family Trust).

5. Les Perlman as Trustee of the Arcadia Trust (formerly the Enthoven Family Trust).

6. Gregory Picard as Trustee of the Arcadia Trust (formerly the Enthoven Family Trust).

7. Geoffrey Snelgar as Trustee of the Arcadia Trust (formerly the Enthoven Family Trust).

8. HSBC Guyerzeller Trust Company AG as Trustee of the Taro III Trust.

9. Cura Treuinstitut as Trustee of the Taro III Trust.

10. Yellowwoods Holdings S.a.r.l.

11. Hollard Insurance Company Limited (South Africa)

12. Hollard Investments Coӧperatief U.A.

13. Hollard Investments B.V.

14. Hollard Holdings Australia Pty Ltd ABN 30 154 586 802

Schedule 2 - the Applicants

Cura Treuinstitut as Trustee of the The Taro III Trust, Liechtenstein

2. R&H Trust Co. (Zurich) AG as Trustee of the The Taro III Trust, Liechtenstein

3. The Taro III Trust, Liechtenstein

4. Yellowwoods Holdings S.a.r.l., Luxembourg

5. Leslie Perlman

6. L. Perlman S.E.C.S., Luxembourg

7. IVM Intersurer B.V.

8. Hollard Investments B.V.

9. Hollard Holdings Australia Pty Ltd ABN 30 154 586 802

Schedule 3 – the Financial Sector Companies other than the Hollard Insurance Company Pty Ltd ABN 78 090 584 473

Hollard Holdings Australia Pty Ltd ABN 30 154 586 802

2. Hollard Investments B.V.

3. IVM Intersurer B.V.

4. L. Perlman S.E.C.S., Luxembourg

Overview

The Financial Sector (Shareholdings) Act 1998, enacted by the Parliament of Australia, was introduced to regulate and monitor significant shareholdings in Australian financial sector companies to ensure financial stability. This Act aims to safeguard the interests of consumers, policyholders, depositors, and the financial system as a whole by controlling the ownership and control of financial sector companies. The legislation allows the Treasurer or their delegate to approve or disapprove significant shareholdings, ensuring that such holdings do not pose a risk to financial stability. The notifiable instrument F2022N00125 dated 1 June 2022, issued under the authority of the Financial Sector (Shareholdings) Act 1998, revokes existing approval for certain stakeholders to hold a 100% stake in Hollard Insurance Company and associated entities while granting new approval for other applicants to hold a 100% stake in the same entities. The decision is based on the national interest, reflecting the policy objective of maintaining financial sector integrity and stability.

Scope and Application

The Financial Sector (Shareholdings) Act 1998 applies to the persons and entities listed in Schedules 1, 2, and 3 of the notifiable instrument F2022N00125, specifically those seeking approval to hold a stake in financial sector companies exceeding 20%. This includes the existing approval holders and applicants seeking new approvals. The legislation is enacted at the Commonwealth level, governing the approval process for significant shareholdings in financial sector companies. The Act allows for the revocation of existing approvals and the granting of new approvals under specific conditions deemed to be in the national interest. The instrument extends the application of the Act through subordinate instruments, particularly through flow-on approvals as outlined in section 19. This means that if an approval is granted to a holding company, it may extend to its 100% subsidiaries, and if held by a company, it may extend to its officers. The approval process is subject to the criteria set out in the Act, which includes ensuring that the shareholdings do not compromise the financial stability and integrity of the companies involved.

Key Provisions

The key sections of the notifiable instrument (F2022N00125) primarily revolve around the revocation of an existing approval and the granting of a new approval under the Financial Sector (Shareholdings) Act 1998. Specifically, section 18(3) of the Act allows for the revocation of the existing approval held by the entities listed in Schedule 1, while section 14(1) facilitates the granting of a new approval to the applicants listed in Schedule 2 to hold a 100% stake in Hollard Insurance Company Pty Ltd and its related entities, as well as in Commonwealth Insurance Limited. These approvals are necessary for the applicants to hold more than a 20% stake in the specified financial sector companies. The obligations imposed by the Act on the parties involved include the requirement for the existing approval holders to relinquish their approval and for the applicants to submit applications for new approvals to hold significant stakes in the financial sector companies. The Act mandates that the delegate of the Treasurer, in this case, Sharyn Reichstein, assess whether it is in the national interest for the applicants to hold these stakes. If satisfied, the delegate has the authority to revoke the existing approval and grant new approvals under sections 18(3) and 14(1) of the Act, respectively. In terms of consequences for non-compliance, the Act does not explicitly outline specific offences, penalties, or civil/criminal consequences for breaches. However, the revocation of approval and the granting of new approvals are significant administrative actions that can have substantial impacts on the parties involved. Non-compliance with the Act's requirements might lead to further regulatory scrutiny, potential revocation of approvals, and other administrative actions deemed necessary by the relevant authorities. The Act ensures that any changes in shareholding are subject to rigorous oversight to protect the national interest.

Area of Law: Financial Services Law
Instrument: Statutory Instrument
Concepts: Definitions & Interpretation; Licensing & Registration; Reporting & Disclosure Obligations; Regulatory Standards

Interactions

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.

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