Banking Act exemptions and section 66 guidelines

March 2016

Response paper

Non-confidential  submissions

 November 2014

Response paper

April 2013 

Discussion paper

Letters 

16 December 2013 - Proposals on RFC Exemption Order

On 19 April 2013, APRA released a discussion paper setting out proposed changes to the operation of Banking Exemption Order 96, which sets out conditions that RFCs must meet in order to obtain exemption from authorisation under the Banking Act 1959. On 23 September 2013, APRA wrote to RFCs to advise them that in order to allow APRA an adequate opportunity to brief the new Government on its consultations on the RFC Exemption Order, the commencement of any changes to the Exemption Order would be deferred until 1 January 2014.

APRA is currently awaiting information that will enable it to complete the Government’s new compliance costing process for regulatory reforms. Accordingly, APRA will delay the commencement of any changes to the RFC Exemption Order to a date that will be advised to RFCs.

If you have questions in relation to this matter, please contact Gavin Maunder, Policy Adviser on (02) 9210 3461.

23 September 2013 - Proposals on RFC Exemption Order

On 19 April 2013, APRA released a discussion paper setting out proposed changes to the operation of Banking Exemption Order 96 that sets out conditions that RFCs must meet in order to obtain exemption from authorisation under the Banking Act 1959. On 24 June 2013, APRA wrote to RFCs to advise them of the decision to delay commencement of any changes to the Exemption Order until 1 October 2013.

To allow APRA an adequate opportunity to brief the new Government on its consultations on the RFC Exemption Order, the commencement of any changes to the Exemption Order will be deferred until 1 January 2014.

If you have questions in relation to this matter, please contact Jane O’Doherty, Senior Manager of ADI Policy, on (02) 9210 3175.

24 June 2013 - Proposals on RFC Exemption Order

On 19 April 2013 APRA released a discussion paper setting out proposed changes to the operation of Banking Exemption Order 96 that sets out conditions which RFCs must meet in order to obtain exemption from authorisation under the Banking Act 1959. This was followed by a letter on 24 May regarding proposed modified transition arrangements.

Originally, APRA had intended that any changes to the Exemption Order would take effect from 1 July 2013. APRA is currently refining the details of the changes, but the decision has been made to delay commencement of any changes to the Exemption Order until 1 October 2013. Details of those changes will be released in the coming weeks.

If you have questions in relation to this matter, please contact Gavin Maunder, Policy Advisor on (02) 9210 3461.

24 May 2013 - Transition period for retail at-call accounts

On 19 April 2013 APRA released a discussion paper setting out proposed changes to the operation of Exemption Order 96. This Order exempts an RFC from the need to comply with the Banking Act 1959, provided the RFC complies with the conditions set out in the Order.

One of the proposals in the discussion paper is that from 1 July 2013 RFCs will not be able to offer at-call investments to retail customers, and by that date any existing retail at-call funds will need to be redeemed by customers or converted to debentures with a minimum 31 day maturity. Since the release of the discussion paper, APRA has received a number of enquiries and submissions which indicate some uncertainty as to when the proposals would apply if implemented. Concerns have also been expressed that the proposed implementation date for existing investments is too short, given the operational work involved.

Noting that the formal consultation does not close until today and that APRA is yet to make a final decision on the proposals, APRA has concluded that a longer transition period should be provided for existing at-call retail funds. Therefore, should APRA decide to implement the current proposals with regard to retail at-call investments, the revised timing will be:

• from 1 July 2013, no new at-call accounts are to be accepted by RFCs;
• and existing accounts at 30 June 2013 may continue to be operated at-call until 30 June 2014.

RFCs are expected to use this longer transition period to more smoothly manage the conversion of existing accounts to debentures with a minimum maturity period of 31 days, or alternatively to adjust their balance sheets through more term funding or reduced assets.

All other proposals in the discussion paper are unchanged. APRA will make a final decision on its proposals after due consideration of submissions.

If you have questions in relation to this matter, please contact Gavin Maunder, Policy Advisor on (02) 9210 3461.

Draft guidelines

Non confidential submissions