Banking and Finance Point-in-Time Service Updates

The Banking and Finance Point-in-Time Service has been updated to include the Treasury Laws Amendment (Financial Sector Regulation) Act 2018 (Cth) (Act No 142 of 2018).

Act 142 of 2018

To support new entrants to the financial services market, the 15 per cent ownership restriction applying to insurance companies (life insurance and general insurance companies), Authorised Deposit-taking Institutions (ADIs) - broadly banks, credit unions and building societies, and relevant holding companies under the Financial Sector (Shareholdings) Act 1998 (FSSA) will be increased to 20 per cent. Appropriate safeguards to protect consumers and financial system stability against risks associated with concentrated ownership of financial sector companies are maintained including a fit and proper test.
To encourage greater competition in the banking sector and allow start-up banks to enter the market at an earlier stage than is currently possible, new entrants will be allowed to operate subject to considerable concessions coupled with a time limited restriction on the ADI licence. A key restriction is that the ADI licence will be granted subject to a time limit.
While concessions to the prudential framework apply, a Restricted ADI will be subject to further restrictions on their ADI licence in order to limit risk to depositors and financial stability.

The amendments made by this Act have been updated in the Point-in-Time Banking and Finance Service current to 6 December 2018. (NB: Subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.