Variation to change expiry date of authority to carry on banking business 2023 – Avenue Bank Limited

Overview

The Variation to change expiry date of authority to carry on banking business 2023, issued under the Banking Act 1959, addresses the need to adjust the expiry date of a banking authority held by Avenue Bank Limited. Enacted by Renée Roberts, a delegate of the Australian Prudential Regulation Authority (APRA), the variation extends the expiry date of the section 9 authority from 7 September 2023 to 7 March 2024. This legislative instrument was introduced to ensure the continuity of banking operations by Avenue Bank Limited and to maintain financial stability within the Australian banking sector, as per the policy objectives outlined in the Banking Act 1959. The instrument, which comes into effect on the date of its issuance, 14 August 2023, reflects APRA's role in regulating and overseeing banking entities to safeguard the interests of consumers and the broader economy.

Scope and Application

The Gazetted instrument C2023G00947 pertains to a variation of the expiry date of the section 9 authority held by Avenue Bank Limited, which allows it to carry on banking business in Australia. This authority was set to expire on 7 September 2023, but under the authority of Renée Roberts, a delegate of the Australian Prudential Regulation Authority (APRA), the expiry date has been altered to 7 March 2024. This specific variation applies solely to Avenue Bank Limited, identified by its Australian Business Number (ABN) 24 628 073 085. The alteration is made pursuant to subsection 9E(2) of the Banking Act 1959, and the instrument takes effect on the date it is issued, which is 14 August 2023. This change is confined to the geographic jurisdiction of Australia, impacting only the banking entity named and does not extend to other banks or financial institutions. The Act provides the definitions for "banking business" and "section 9 authority" as per subsection 5(1), and any further interpretations or applications of this variation are subject to the overarching provisions of the Banking Act 1959.

Key Provisions

The main operative sections of this instrument are those that specify the authority held by Avenue Bank Limited and the variation to its expiry date. According to subsection 9E(2) of the Banking Act 1959 (the Act), Renée Roberts, as a delegate of the Australian Prudential Regulation Authority (APRA), has the power to vary the expiry date of a section 9 authority for carrying on banking business in Australia. In this instance, the authority held by Avenue Bank Limited, which was set to expire on 7 September 2023, is extended to 7 March 2024. The obligations and requirements imposed by this Act on Avenue Bank Limited are essentially tied to the maintenance of its section 9 authority to conduct banking business in Australia. As holders of this authority, Avenue Bank Limited must comply with the terms and conditions stipulated in the authority, including any variations made by APRA. The variation in this case is an adjustment to the expiry date, which now extends the period during which Avenue Bank Limited can operate under the authority. The bank must ensure that all operations are conducted within the updated timeframe and adhere to the regulatory framework set by APRA and the Act. In terms of legal consequences for non-compliance, the Banking Act 1959 provides various offences and penalties for breaches. While the specific provisions of the Act that detail these offences and penalties are not outlined in the instrument, it is understood that any failure to comply with the authority or its variations could result in significant legal repercussions. Such breaches might include operating without a valid authority, which could lead to criminal charges or fines. The maximum penalties for these offences would be determined by the relevant sections of the Act, but they generally include substantial fines and potential imprisonment for individuals found guilty of serious breaches. Avenue Bank Limited must ensure it remains compliant with all provisions of the authority and its variations to avoid any adverse consequences. This includes keeping abreast of any further changes or conditions that may be imposed by APRA. The variation of the expiry date to 7 March 2024 is a clear directive that the bank must adhere to, and failure to do so could result in the revocation of the authority, leading to cessation of its banking operations in Australia.