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).
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).
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