Conversion to a Bank in Australia
By Shaun McGushin Director Projects & Finance and Cassian Ho Lawyer Ash St.
Includes the new Treasury Laws Amendment (Banking Measures No. 1) Bill 2017 (Cth) announced 19 October 2017
The attached Ash St. memorandum briefly outlines the significant issues that would need to be addressed by an existing financial entity (Company) should it seek to convert to a bank in Australia.
Please note that this is a general overview of the regulatory environment in Australia and is not tailored to the particular circumstances of any particular entity.
The Company will require authorisation from the Australian Prudential Regulation Authority (APRA) to become a bank in Australia. APRA is the body empowered to grant authorisation to conduct any banking business in Australia.
Another regulatory body that is important in the regulation of authorised deposit-taking institution is the Australian Securities and Investments Commission (ASIC), particularly in relation to the Company obtaining an Australian Financial Services License.
The memorandum does not deal with all the above matters in detail, however is a good guide to thinking about the key issues at play when proposing to convert to a bank in Australia.
(a) assumes that the Company is not a subsidiary of a non-operating holding company. If this is not correct, then certain other requirements will need to be complied with;
(b) does not consider any potential application of the Foreign Acquisitions and Takeovers Act 1975 (Cth).
If any further information in respect of any of the points raised in the memorandum or other matters is required, please do not hesitate to contact us at firstname.lastname@example.org