Overview

The Variation to Change Expiry Date of Authority to Carry on Banking Business 2021, enacted on 16 June 2021, is an instrument issued by the Australian Prudential Regulation Authority (APRA) under subsection 9E(2) of the Banking Act 1959. This legislative instrument was introduced to address the impending expiry of the section 9 authority held by IN1Bank Ltd, allowing the bank to continue operating without interruption. The authority, which was set to expire on 12 December 2021, has been varied to extend its validity to 12 December 2022. The policy objective behind this variation is to ensure that IN1Bank Ltd maintains its operational continuity and regulatory compliance, thereby contributing to the stability and integrity of the Australian banking sector. This instrument was required to be published in the Gazette, reflecting its formal legislative status.

Scope and Application

The Banking Act 1959 applies to entities such as IN1Bank Ltd, which is authorised to carry on banking business in Australia, thereby regulating the conduct and operations of authorised deposit-taking institutions. The Act specifically targets IN1Bank Ltd, an entity identified by its Australian Business Number (ABN), granting it a Section 9 authority to operate under certain conditions. This particular variation to the authority, made by Melisande Waterford as a delegate of the Australian Prudential Regulation Authority (APRA), modifies the expiry date of the authority for IN1Bank Ltd from 12 December 2021 to 12 December 2022, extending the operational period by one year. The Act's jurisdiction is national, extending across all states and territories in Australia, with APRA mandated to publish such instruments in the Gazette to ensure transparency and compliance with regulatory standards. The variation does not introduce new exclusions or exemptions but operates within the existing framework of the Act, with any further extensions or restrictions potentially managed through subordinate instruments.

Key Provisions

The key provision of the legislation, C2021G00447, is a variation to the expiry date of a section 9 authority held by IN1Bank Ltd to carry on banking business in Australia (section 1). This authority, currently set to expire on 12 December 2021, is being extended to 12 December 2022 by Melisande Waterford, a delegate of the Australian Prudential Regulation Authority (APRA) under subsection 9E(2) of the Banking Act 1959 (section 1). This variation is effective from the date of its creation, 16 June 2021 (section 2). IN1Bank Ltd, the body corporate subject to this legislation, now has an extended period to maintain its compliance and operations under the authority granted by the Banking Act 1959. The obligation on IN1Bank Ltd is to ensure that all banking activities continue to be conducted in accordance with the terms and conditions of the amended authority until the new expiry date. APRA's role in this process involves monitoring and ensuring that IN1Bank Ltd adheres to all regulatory requirements throughout this extended period. The legislation also imposes obligations on APRA to ensure that this variation is properly communicated and documented. APRA is required to publish the instrument in the Gazette, which serves as an official notification to the public and relevant stakeholders of the change in the authority's expiry date (section 1). Additionally, the body corporate must update its records and any relevant documentation to reflect the amended expiry date to maintain compliance with the Act. Failure to comply with the provisions of the Banking Act 1959 or the terms of the authority could result in legal consequences. Although the specific offences and penalties are not detailed in the instrument, under the Act, breaches of the conditions of the authority or non-compliance with the Act could lead to civil or criminal penalties. The maximum penalties for such breaches can include substantial fines and, in some cases, imprisonment, as prescribed by the relevant sections of the Act.