Revocation of existing approval to hold a stake in a financial sector company of more than 15%
Approval to hold a stake in a financial sector company of more than 15%
Financial Sector (Shareholdings) Act 1998
To: Allianz SE, Allianz Europe B.V. and Allianz Australia Life Insurance Holdings Limited ABN 95 623 445 474 (AALIHL) (the applicants)
SINCE
- Allianz Europe B.V. and Allianz SE have applied to the Treasurer under section 13 of the Financial Sector (Shareholdings) Act 1998 (the Act) for approval to hold a 100% stake in each of AALIHL and Allianz Australia Life Insurance Limited ABN 27 076 033 782 (AALIL), financial sector companies under the Act;
B. AALIHL has applied to the Treasurer under section 13 of the Act for approval to hold a 100% stake in AALIL;
C. Approvals were previously granted on 20 April 1999 and 30 December 2009 to Allianz Europe B.V. and Allianz SE (the current holders) under subsection 14(1) of the Act to hold a 100% stake in AALIL (the existing approvals);
D. The current holders have requested that the existing approvals be revoked in so far as they apply to their holding stakes in AALIL from the time, if any, a new approval is granted in respect of the application referred to in Recital A;
E. I am satisfied that it is in the national interest to approve the applicants holding a 100% stake in each of AALIHL and AALIL (as relevant); and
F. I am satisfied it is in the national interest to revoke the existing approvals so far as they permit the current holders to hold a 100% stake in AALIL from the time a new approval is granted to the applicants to hold a 100% stake in AALIL;
I, Nigel Boik, a delegate of the Treasurer:
(a) under section 14(1) of the Act, APPROVE:
(i) the applicants holding a 100% stake in AALIL; and
(ii) Allianz Europe B.V. and Allianz SE holding a 100% stake in AALIHL; and
(b) under subsection 18(3) of the Act, REVOKE the approvals granted on 20 April 1999 and 30 December 2009 so far as they permitted the current holders to hold a 100% stake in AALIL.
This instrument comes into force from the date it is signed and remains in force indefinitely.
Dated 24 October 2018
[Signed]
………………………
Nigel Boik
General Manager
Diversified Institutions Division
Interpretation
In this Notice:
100% subsidiary has the meaning given in section 3 of the Act
authorised insurance company has the meaning given in section 3 of the Act
financial sector company has the meaning given in section 3 of the Act
holding company has the meaning given by section 4 of the Act
stake in relation to a company, has the meaning given in clause 10 of Schedule 1 to the Act.
unacceptable shareholding situation has the meaning given in section 10 of the Act
Note 1 Under paragraph 16(2)(a) of the Act, the Treasurer may, by written notice given to a person who holds an Approval under section 14, impose one or more conditions or further conditions to which the Approval is subject. Under paragraph 16(2)(b) of the Act, the Treasurer may revoke or vary any conditions imposed under paragraph 16(2)(a) of the Act or specified in the Notice of Approval. The Treasurer’s powers under subsection 16(2) may be exercised on the Treasurer’s own initiative or an application made to the Treasurer in accordance with the requirements of subsection 16(4) of the Act, by the person who holds the Approval (see subsection 16(3) of the Act).
Note 2 A person who holds an Approval under section 14 of the Act may apply to the Treasurer under subsection 17(1) of the Act, to vary the percentage specified in the Approval.
Note 3 Under subsection 17(6) of the Act, the Treasurer may, on the Treasurer’s own initiative, by written notice given to a person who holds an Approval under section 14, vary the percentage specified in the Approval if the Treasurer is satisfied it is in the national interest to do so.
Note 4 The circumstances in which the Treasurer may revoke a person’s Approval under section 14 are set out in subsection 18(1) of the Act.
Note 5 Section 19 of the Act provides for flow-on approvals. If an Approval has been granted for the holding of a stake in a financial sector company and the financial sector company is a holding company for an authorised deposit-taking institution or an authorised insurance company, then an approval is taken to exist for the holding of a stake of equal value in each financial sector company that is a 100% subsidiary of the holding company.
Note 6 Under section 14 of the Act, the Treasurer must give written notice of this Approval to the applicants and financial sector company concerned and must publish a copy of this notice in the Gazette.
Note 7 Under section 11 of the Act, a person or 2 or more persons under an arrangement are guilty of an offence if the person(s) acquires shares in a company and the acquisition has the result, in relation to a financial sector company, that:
(i) an unacceptable shareholding situation comes into existence; or
(ii) if an unacceptable shareholding situation already exists in relation to the company and in relation to a person – there is an increase in the stake held by the person in the company;
and the person(s) was reckless as to whether the acquisition would have that result. A maximum penalty of 400 penalty units applies or by virtue of subsection 4B(3) of the Crimes Act 1914, in the case of a body corporate, a penalty not exceeding 2,000 penalty units. By virtue of section 39 of the Act, an offence against section 11 is an indictable offence.
Note 8 Under section 32(3) of the Act, if a person has engaged in or is proposing to engage in any conduct in contravention of a condition to which an approval under section 14 is subject, the Federal Court may, on the application of the Treasurer, grant an injunction:
(i) restraining the person engaging in the conduct; and
(ii) if in the court’s opinion, it is desirable to do so, requiring the person to do something.