Commonwealth Consolidated Acts

FINANCIAL SECTOR (SHAREHOLDINGS) ACT 1998 - SECT 14A

  (1)   For the purposes of paragraph   14(1)(b), the criteria are:

  (a)   the applicant is a fit and proper person to hold a stake in the company of more than 20%; and

  (b)   the company is:

  (i)   a company to which subsection   ( 3) or (4) applies; or

  (ii)   a holding company of a company to which subsection   ( 3) or (4) applies.

Fit and proper person

  (2)   The rules may prescribe matters that must be considered in determining whether a person is a fit and proper person for the purposes of paragraphs   ( 1)(a) and 18(1)(d). However, such rules do not limit the matters that may be considered.

New or recently established financial sector company

  (3)   This subsection applies to a company if:

  (a)   the company is a body corporate incorporated in Australia; and

  (b)   the company has applied for one of the following, but that application has not yet been decided:

  (i)   authority under the Banking Act 1959 to carry on banking business;

  (ii)   authorisation under the Insurance Act 1973 to carry on insurance business;

  (iii)   registration under section   21 of the Life Insurance Act 1995 ; and

  (c)   the value of the total resident assets of the company is less than the assets threshold for the company (assuming the company is granted the authority, authorisation or registration concerned).

  (4)   This subsection applies to a company if:

  (a)   the company is a body corporate incorporated in Australia; and

  (b)   the company is:

  (i)   an authorised deposit - taking institution; or

  (ii)   a company that is authorised under the Insurance Act 1973 to carry on insurance business; or

  (iii)   a company that is registered under section   21 of the Life Insurance Act 1995 ; and

  (c)   at the time of the application under subsection   13(1), the company has been such an institution, or so authorised or registered (whichever is applicable), for less than 5 years; and

  (d)   the value of the total resident assets of the company is less than the assets threshold for the company.

Total resident assets

  (5)   The rules must prescribe the meaning of total resident assets in relation to a financial sector company.

Note:   The rules may prescribe different meanings for different classes of financial sector company (see subsection   13(3) of the Legislation Act 2003 ).

Assets threshold

  (6)   If a company is:

  (a)   an authorised deposit - taking institution; or

  (b)   registered under section   21 of the Life Insurance Act 1995 ;

the assets threshold for the company is:

  (c)   $200 million; or

  (d)   if another amount is determined in an instrument under subsection   ( 8)--that other amount.

  (7)   If a company is authorised under the Insurance Act 1973 to carry on insurance business, the assets threshold for the company is:

  (a)   $50 million; or

  (b)   if another amount is determined in an instrument under subsection   ( 8)--that other amount.

  (8)   The Treasurer may, by legislative instrument, determine an amount for the purposes of paragraph   ( 6)(d) or (7)(b).