Financial Sector (Transfer and Restructure) Act 1999

PART 4 - COMPULSORY TRANSFERS  

Division 2 - Compulsory transfer determinations  

SECTION 25AA   COMPULSORY TRANSFER OF SHARES DETERMINATIONS  
Transferring body is regulated body

25AA(1)    
APRA may make a written determination that there is to be a transfer of shares in a regulated body to another body corporate. APRA may make the determination only if:

(a) any of the following requirements are met:

(i) if the regulated body is an ADI - the Minister has declared under section 25A that a transfer of shares in the transferring body to the receiving body should occur;

(ii) if the regulated body is an ADI and subparagraph (i) does not apply - APRA is satisfied that any of the conditions in subparagraph 25(1)(a)(i) , (ii) , (iii) , (iv) or (v) have been satisfied;

(iii) if the regulated body is a life insurance company - APRA is satisfied that any of the conditions in subparagraph 25(1C)(a)(i) , (ii) , (iii) or (iv) have been satisfied;

(iv) if the regulated body is a general insurer - APRA is satisfied that any of the conditions in subparagraph 25(1E)(a)(i) , (ii) , (iii) or (iv) have been satisfied; and

(b) if the transferring body is an ADI - APRA has considered the interests of depositors of the transferring body (when viewed as a group) and considers that, having regard to their interests, it would be appropriate for the transfer to be made; and

(c) if the transferring body is a life insurance company or general insurer - APRA has considered the interests of policy owners of the transferring body (when viewed as a group) and considers that, having regard to their interests, it would be appropriate for the transfer to be made; and

(d) if the receiving body is an ADI - APRA is satisfied that the transfer is appropriate, having regard to the interests of depositors of the receiving body when viewed as a group; and

(e) if the receiving body is a life insurance company or general insurer - APRA is satisfied that the transfer is appropriate, having regard to the interests of policy owners of the receiving body when viewed as a group; and

(f) the conditions in subsection (3) exist.

Transferring body cannot be foreign body

25AA(2)    
APRA cannot make a determination under this section if the transferring body is any of the following:

(a) a foreign ADI;

(b) a foreign general insurer;

(c) an eligible foreign life insurance company.

Common conditions for making a determination under this section

25AA(3)    
APRA may make a determination under this section only if:

(a) APRA is satisfied that the board of directors of the receiving body has consented to the transfer; and

(b) APRA is satisfied that the transfer is appropriate, having regard to:

(i) the interests of the financial sector as a whole; and

(ii) any other matters that APRA considers relevant; and

(c) either:

(i) the Minister has consented to the transfer; or

(ii) the Minister ' s consent to the transfer is not required (see section 29 ).

Formal requirements for determinations under this section

25AA(4)    
A determination under this section must include particulars of the transfer, including the names of the transferring body and the receiving body.

25AA(5)    
A determination under this section must include a statement of the reasons why the determination has been made.

25AA(6)    
A determination under this section must be signed by an authorised APRA officer.

Determinations under this section are not legislative instruments

25AA(7)    
A determination made under this section is not a legislative instrument.