Revocation of NOHC authority 2021 – 86 400 Holdings Ltd

Overview

The Revocation of NOHC Authority 2021 – 86 400 Holdings Ltd is a legislative instrument issued under the Banking Act 1959. This Act, enacted in 1959, primarily aims to regulate and oversee the operations of authorised deposit-taking institutions (ADIs) in Australia to ensure financial stability and protect consumers. The problem or gap addressed by this particular revocation is the formal removal of the non-operating holding company (NOHC) authority held by 86 400 Holdings Ltd, following a written request from the company. The enactment of this revocation was carried out by Therese McCarthy Hockey, an Executive Director of the Banking Division and a delegate of the Australian Prudential Regulation Authority (APRA). APRA's role in this process ensures that the revocation does not compromise the national interest or the interests of depositors of any ADI that is a subsidiary of the body corporate. This revocation instrument came into effect on 8 December 2021.

Scope and Application

The Revocation of NOHC authority 2021 – 86 400 Holdings Ltd instrument, issued under the Banking Act 1959, applies specifically to 86 400 Holdings Ltd, identified by its Australian Business Number (ABN) 36 621 802 097. The Act revokes the authority of this body corporate as a Non-Operating Holding Company (NOHC) under the legislative framework established by the Banking Act 1959. This revocation follows a written request from the body corporate to the Australian Prudential Regulation Authority (APRA), and it is contingent upon APRA being satisfied that such revocation does not jeopardise the national interest or the interests of depositors of any Authorised Deposit-taking Institution (ADI) that is a subsidiary of 86 400 Holdings Ltd. The revocation instrument, issued by Therese McCarthy Hockey as an Executive Director of the Banking Division and a delegate of APRA, comes into effect on 8 December 2021. The instrument mandates the publication of the revocation notice in the Gazette, with APRA having the discretion to publish it through additional channels.

Key Provisions

The key provisions of the Revocation of NOHC authority 2021 – 86 400 Holdings Ltd instrument, found under the Banking Act 1959 (the Act), are primarily focused on the revocation of a Non-Operating Holding Company (NOHC) authority held by 86 400 Holdings Ltd (the body corporate). The instrument explicitly states that the revocation is effective following the body corporate's written request to the Australian Prudential Regulation Authority (APRA) and the delegate's determination that such revocation does not conflict with the national interest or the interests of depositors of any Authorised Deposit-taking Institution (ADI) that is a subsidiary of the body corporate (subsection 11AB(1)). The revocation takes effect from 8 December 2021, as indicated in the instrument. The Act imposes certain obligations on the parties involved, primarily on the body corporate making the request for revocation and APRA in processing and effecting the revocation. The body corporate must formally submit a written request to APRA for the revocation of its NOHC authority. APRA, in turn, must assess whether the revocation aligns with the national interest and the interests of depositors of any subsidiary ADIs. If satisfied, APRA, through a delegate such as Therese McCarthy Hockey, executes the revocation as stated in the instrument. In terms of offences, penalties, or consequences for breach, the instrument does not explicitly outline specific penalties for the revocation process itself. However, the Banking Act 1959 and related regulations encompass a broader framework that could impose penalties for non-compliance with banking regulations. Typically, breaches of banking regulations can result in significant civil and criminal penalties, including fines and imprisonment, depending on the severity and nature of the breach. The exact penalties would be governed by the specific provisions of the Act and any applicable regulations or subsidiary legislation. In summary, the instrument focuses on the formal process of revoking a NOHC authority based on a written request and an assessment by APRA. It sets out the conditions under which such revocation is permissible and the procedural steps to be followed. While the instrument does not detail specific penalties for the revocation process, the broader legislative framework within which it operates does provide for significant penalties for broader regulatory breaches.